Professional Documents
Culture Documents
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1.1 COMPANY HISTORY
JK Tyre was incorporated as a private limited company in West Bengal in February 14,
1951. Until March 31, 1970, the company was engaged in the managing agency
business. Thereafter, the company decided to undertake manufacturing activities and
obtained a letter of intent in February 1972 for the manufacture of automobile tyres and
tubes.
JK Tyre & Industries is the flagship company under the umbrella of JK Organisation. JK
Tyre and Industries is a mega corporate entity that is emblematic of excellence,
diversification and pioneering new technologies. A part of JK Organization which ranks
among the top private groups private groups in India, Jk Tyre and Industries is committed
to self reliance and follows an ethic that views customer satisfaction as an index of
achievement. JK Tyre is the pioneer for Steel Radial technology in India.
Over the years, the company has expanded and diversified its business portfolio. It has
developed into a multi product, multi-location corporate entity. The company produces
and sells tyres and tubes under the brand name 'JK Tyre' for Truck, Buses, Passenger
Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors
The company’s three plants are located in Rajasthan, Madhya Pradesh and Karnataka, JK
Tyre is the largest manufacturer of truck and bus tyres in India. The truck and bus tyres
produced account for nearly 74% of the total tyre business in India, thus giving JK Tyre
an undisputed position. Additionally, JK Tyre is the only manufacturer of truck/ bus steel
radial tyres, and the second largest manufacturer of 4-wheeler tyres in the country.
J.K. Industries acquired Vikrant Tyres, Mysore in 1997. J.K. Industries and Vikrant Tyres
are the only tyre companies in India to have received all three ISO 9001, QS 9000 and
ISO 14001 certificates.
The company has a technical collaboration with Continental AG, Germany, which is
among the top five tyre manufacturers in the world to keep pace with latest technological
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developments. To stay at the forefront of technological advancements a state of art
Research & Development Centre, HASETRI, was set up, which remains the nerve centre
for providing cutting edge technology. In a short span of time it has emerged as the 17th
largest tyre manufacturer in the world an achievement in itself.
The company design tyres for the vehicles using the latest tools & techniques which
enable us to judge and eliminate chances of failure at the drawing board stage only. The
Radials are manufactured in an air conditioned plant equipped with the finest machines
so that you get consistently good quality.
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1.2 THE INDIAN TYRE INDUSTRY-AN OVERVIEW
Highlights
The tyre industry is a Rs. 12,000 crore industry. The fortune of this industry
depends on the agricultural and industrial performance of the economy, the transportation
needs and the production of vehicles. While the tyre industry is mainly dominated by the
organized sector, the unorganized sector holds away in bicycle tyres. In the last five years
(2001 to 2006), the industry managed to achieve a compounded annual growth of only
4.40 per cent. However in the last fiscal the industry registered a growth of 7 per cent.
Natural rubber constitutes 25 per cent of the total raw material cost of the tyres.
The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian tyres,
whereas world wide, the ratio of natural rubber to synthetic rubber is 30:70. The overall
recession in the Indian economy and especially the automobile sector continued for 3-4
years. The largest hit among the auto sector was the commercial vehicle segment. Tyre
industry is capital intensive, and as production is released in spurts, it leads to constant
demand-supply imbalances and consequent cyclically in prices.
As raw materials form 70% of the costs, variable costs are very high. Profit
margins are therefore thin. Production process is technology intensive and globally huge
sums are invested in R&D. Tyre demand is a derived demand.
Sector Comments
Ever since the first Indian tyre company, Dunlop Rubber Company (India) was
incorporated in 1926, the tyre industry has grown rapidly and today it is a Rs. 12,000
crore industry. India has 2.61 lakhs villages, connected by 6.23 lakhs kms of metalled
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roads and 9.81 lakhs kms of unmetalled roads. These villages are linked to small towns
and cities. There is a daily traffic of over 4.12 lakhs trucks, 1.27 lakhs buses, 7.23 lakhs
cars, and thousands of taxis, two-wheelers, tractors and animal driven vehicles on Indian
roads. There exists a vast potential for the tyre industry in India. The fortune of the tyre
industry depends on the agricultural and industrial performance of the economy, the
transportation needs and the production of vehicles. Hence, this is a very sensitive
industry, which has to adapt itself to a highly volatile environment.
Market Profile
While the tyre industry is mainly dominated by the organized sector, the un-
organized sector holds sway in bicycle tyres. The major players in the organized tyre
segment consist of MRF, Apollo Tyres, Ceat, and JK Industries, which account for 63 per
cent of the organized tyre market. The other key players include Modi Rubber, Kesoram
Industries and Goodyear India, with 11 per cent, 7 per cent share and 6 per cent share
respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-srichakra,
Metro Tyres and Balkrishna Tyres are some of the other players in the industry. MRF, the
largest tyre manufacturer in the country, has strong brand equity. While it rules supreme
in the industry, other players have created niche markets of their own.
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Sector specifics
The tyre industry is a major consumer of the domestic rubber production. Natural
rubber constitutes 80 per cent of the material content in Indian tyres. Synthetic rubber
constitutes only 20 percent of the rubber content of a tyre in India. World wide, the ratio
of natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic rubber,
rubber chemicals are also widely used in tyres.
Most of the RSS-4 grade natural rubber required by the Indian tyre industry is
domestically sourced, with only a marginal amount being imported. This is an advantage
for the industry, since natural rubber constitutes 25 per cent of the total raw material cost
of the tyres. The two types of synthetic rubber used in tyres are Poly Butadiene Rubber
(PBR) and Styrene Butadiene Rubber (SBR). The former is used in most of the tyres,
while the latter is mainly used in the radials for passenger cars. Synthetic rubber accounts
for 14 per cent of the raw material cost. Unlike in the case of natural rubber, India
imports 60 per cent of its synthetic rubber requirements.
Apart from rubber, major raw materials are nylon tyre cord and carbon black. The
former is used to make the tyres strong and impart tenacity to it. The latter is responsible
for the colour of the tyre and also enhances the life span of the tyre. Nylon tyre cord
comprises 34 per cent, while carbon black accounts for another 13 per cent of the raw
material cost. In India, the carbon black used is of the N660, N220 and N330 variety.
To sum up, the tyre industry is highly raw-material intensive, with raw material
costs accounting for 70 per cent of the lost of production. Fortunately for the industry, the
rubber and carbon black prices have taken a beating recently, which means lower costs
for the tyre industry. The export-import policy allows free import of all types of new
tyres and tubes.
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Sector Trends
Cross ply tyres have been used in India for several decades. In these tyres, the ply
cords run across each other or diagonally to the outer surface of the tyre. Rayon and
nylon tyre cords are used as the reinforcing medium. These tyres can be retreaded twice
during their lifetime and are hence preferred by Indian transport operators who normally
overload their trucks. A vehicle with the normal carrying capacity of around 12 tones is
usually loaded with double the capacity. Moreover, one also has to contend with the bad
suspensions and bad road conditions. No wonder, 95 per cent of the tyres used in India
are cross plies. Radial tyres have their cords running radially from bead at 90-degree
angle to the rim or along the outer surface of the tyre.
The reinforcing mediums used in these tyres are polyester, nylon, fiberglass and
steel. Hence, these tyres are 20 per cent more expensive than the cross plies. But they
have a longer life and provide lower fuel consumption. The unhealthy condition of the
Indian roads has resulted in radial tyres accounting for only 5 per cent of the tyre industry
as against a global trend of 60 per cent. With two-thirds of the capacity of all major tyre
manufacturers being reserved for radials, this is a real cause for concern.
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1.3 SALIENT FEATURES OF INDIAN TYRE INDUSTRY
Innovativeness
Exports
Sustained exports for over a decade to more than 50 countries. All large tyre
companies are exporting, with over 30% exports to US. Approx. 20% of total Truck &
Bus tyres produced domestically is exported. All large companies are engaged in
sustained exports as a long-term commitment.
Technology Progression
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Within a span of four decades, technology progression from cotton
(reinforcement) carcass to high performance radial tyres.
New vehicle manufacturers, while launching a series of latest models, have easy
access to (and ready availability of) indigenous tyres of their respective specifications and
matching international standards.
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1.4 TYRE INDUSTRY IN INDIA COMPRISES:
40 tyre companies (53 factories), 12 companies account for over 85% of total production
(In Nos.)
1. APOLLO TYRES
2. J.K TYRES
3. MODISTONE
4. BIRLA TYRES
5. CEAT
6. MODI RUBBER LTD
7. CEAT INDIA LT
8. MRF LTD
9. FALCON TYRE LTD
10. PREMIER TYRE LTD
11. GOODYEAR INDIA LTD
12. VIKRANT TYRE LTD
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CHAPTER 2: COMPANY PROFILE
WITH COMPETITORS
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2.1 ABOUT JK TYRE
CORE VALUES:
JK Organization has been a forerunner in the economic and social advancement of India.
It always aimed at creating job opportunities for a multitude of countrymen and to
provide high quality products. It has striven to make India self reliant by pioneering the
production of a number of industrial and consumer products, by adopting the latest
technology as well as developing its own know-how. It has also undertaken industrial
ventures in several other countries.
Trusts are devoted to promoting industrial, technical and medical research, education,
religious values and providing better living and recreational facilities. With the spirit of
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social consciousness uppermost in mind, J.K. Organization is committed to the cause of
human advancement.
1996 India's first dual contact high traction steel radial- aquasonic launched.
HASETRI became the first research institute in Asia to get ISO 9002.
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1999 Synergy with VTL in procurement, marketing and production flexibility.
In what is being considered as a landmark decision in the highly competitive Indian tyre
industry, the Advertising Standards Council of India (ASCI) has upheld JK Industries
Ltd's claim of being India's No 1 tyre manufacturer in the four-wheeler tyre segment,
reaffirming JK's leadership position in the market.
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to bring superior technology and consumer service standards and claim leadership in a
more healthier and competitive manner.''
The case was started when few competitors filed a complaint with ASCI against JK
Tyre's print advertisement, in which JK Tyre announced its numero uno position in the
four-wheeler tyre segment, quoting production figures compiled by Automotive Tyre
Manufacturer Association and other authentic industry sources.
But the competitors contradicted the claim, stating the fact that market figures from a
company's annual report should be used as authentic data to claim one's leadership, not
the production figures.
But ASCI considered the case at the Consumer Complaints Council on 23 May 2002 and
upheld JK Tyre's contention that production figures, as compiled by authentic industry
sources and used by JK Tyre to claim its leadership, is a valid and applicable comparison
platform.
Hence, JK Tyre's claim as No 1 tyre manufacturer in India is a perfectly valid and correct
statement. This also reflects ASCI's agreement to JK Tyre's viewpoint that figures, as
stated in the one's annual report, could actually be misleading and could include revenues
from non-tyre-related businesses also.
JK Tyre, pioneers of radial technology in India, is today India's largest manufacturer of
tyres in the four-wheel segment, including tyres for trucks and buses, LCVs, passenger
cars, jeeps, tractors, ADVs and OTRs. After 25 years of pioneering world-class
technologies in India, JK Tyre has recently launched the country's first eco-friendly
coloured tyres as well as steel-belted tractor rear radials.
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VISION
MISSION
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2.3 BOARD OF MEMBER
Name Designation
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2.4 PLANT
With three plants located in Rajasthan, Madhya Pradesh and Karnataka, JK Tyre is the
largest manufacturer of truck and bus tyres in India. The truck and bus tyres produced
account for nearly 74% of the total tyre business in India, thus giving JK Tyre an
undisputed position. Additionally, JK Tyre is the only manufacturer of truck/ bus steel
radial tyres, and the second largest manufacturer of 4-wheeler tyres in the country.
Also, JK Tyre is the largest exported tyre brand from India. It was awarded the
CAPEXIL's Highest Export Award for 1997-97 by FIEO. It enjoys preferred premium
brand status in Truck Bias market in USA and across many markets in Africa, Middle
East and South East Asia.
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2.5 THE CURRENT SCENARIO OF JK TYRES
` JK Tyres have risen by leaps and bounds by posting a net profit of Rs. 44.2mn in
April, 03 as compared to Rs. 23.8mn in the corresponding period last year. This happened
due to a rise in sales and operating margins.
Net sales raised due to a rise in demand for commercial vehicles and passenger
cars. Operating margin (less other income) has risen fallen to a rise in prices of important
petroleum based raw materials like carbon black and nylon tyre cord. The management
has succeeded in keeping a check on interest costs, which, however, provided as a
support to the bottom line.
The recent development of FII’s expressing their desire to sell their 44% stake in
the company is still hanging fire with the management opposing such a move. The
outlook for the company is not rosy, as it will be facing increasing competition from the
likes of Apollo Tyres, Ceat and Goodyear.
Technology leadership
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R & D Center
Quality Movement
J.K. Tyre has the following Quality System Accreditation to its credit:
ISO 9001
QS 9000
ISO 14001
ISO 9002
Country’s top exporter with exports to 50 countries across six continents. It has a
vast distribution and service network besides the unique “steel wheels” outlets – a chain
of more than 90 tyre care centers across India. It has unique “dial a tyre” service to its
credit.
Continuous up-gradation.
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IN pursuit of excellence, J K has invested Rs 280 Crores in last five years on up
gradation of manufacturing facilities.
The above-mentioned are few name of outstanding talented drivers, JK has put on the
International circuit. Over the span of last five years, JK has invested over Rs 15 crores to
support its several initiatives in this direction and build a unique infrastructure.
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SUPPLY CHAIN MANAGEMENT
JK tyre has long-term partnership of more than 25 years with them, and still going
strong.
OEM’s
They have two major OEM’s as their partners – Maruti Udyog and Mahindra
Automotives. They are the only tyre company, which was audited by Suzuki Motor
Corporation R&D for ascertaining their capabilities to tailor make a Tyre, which could
provide optimal performance of the vehicle.
DEALEARS / DISTRIBUTORS
In the replacement market they have around 3500 dealers in the country. In
addition, an innovative concept of “steel wheels” outlets has been created – currently the
chain has 90 tyres care centers, which will increase to 230 by April’07.
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A one-stop shop for the wheel alignment, computerized wheel balancing and automatic
tyre changing were few concepts provided by JK Tyres to its customers through their
dealers and distributors.
C&F AGENTS
EXPORTS
Based on the principles of dealing, reliability of quality and delivery and standing
by the customer during difficult market conditions has paid dividend in terms of
consistent exports over the last four years. As a result, export volumes of truck / bus tyres
as a total truck tyre production has been higher than the industry average by 3-5%.
TRANSPORTERS
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Awards/Recognition:
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2.6 COMPETITORS INFORMATION
The company is one among the major players in the Indian tyre industry the main
competitors being. Apollo, MRF, CEAT, Birla G- year Bridgestone.
The competition is not restricted to the product mix only but also to the price mix
promotion mix product range quality product development product positioning and other
areas in preview of marketing management.
J.K Tyre has successfully overcome the prevailing recession in the economy and
further strength then its position vis-à-vis competitors by improved operations cost
reduction and aggressive consumer focused marketing.
The rate of growth is much higher than the comparative growth in the industry.
• GOODYEAR
• MRF
• DUNLOP
• CEAT
• APOLLO
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GOODYEAR INDIA LTD: -
1993: Goodyear formed a 50-50 joint venture with South- Asian Tyres Ltd. (SATL) at
Aurangabad to manufacture state-of-art radial tyres for car and light truck and bias
construction tyres for graders and earthmovers.
1996: The first tyre GPS2 radial Passenger was rolled out from Aurangabad plant
1999: A significant investment of 9.3 MM USD was made in the farm tyre manufacturing
process.
2002: Goodyear becomes the first tyre manufacturer to roll out tubeless tyres on Indian
roads. In the passenger car segment, Goodyear supplies tyres to many of the leading
Original Equipment manufacturers in India. These include Maruti, Telco, Mahindra &
Mahindra, Ford, Fiat and many more. Goodyear India has been a pioneer in introducing
tubeless radial tyres in the passenger car segment. Similarly, for buses and trucks,
vehicles rolling out of the assembly line of the leading OEMs like TELCO, Ashok
Leyland, and Mazda are often seen with Goodyear tyres. Goodyear commands a major
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market share in the Off The Road (OTR) segment by being a major supplier to Coal India
Limited, Escorts, L&T, TISCO and major steel plants of the country.
2004: A very significant year with three product launches including GT3, Eagle F1 and
Ducaro GA.
Goodyear India rolls out the Excellence series – a new collection of luxury
passenger car tyres. Designed with the ultimate '3 -Zone Technology', and ECO-Sil Silica
Tread Compound Technology, the tyre provides superior comfort and precise handling on
both wet and dry conditions for premium car drivers
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MRF: -
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Today the company spends about Rs 40 crorers on advertising, which revolves
around strengths and the vision of its pneumonic the mrf muscleman.
DUNLOP INDIA: -
Dunlop world wide had been at the fore front of every development of pneumatic
tyres, which is the actual name of tyres we use for 100 years after 100 years of
establishment Dunlop tyre group is a global network, fully geared to meet the growing
needs of the world market. Today Dunlop has the size economies and scale that enable it
to invest in research and development and in modern facilities to manufacture products of
highest quality. It has got technical collaboration with sumitomo rubber industries Japan
Dunlop ltd U.K. currently under take over of Mr. Chhabria. Dunlop Tyres is the sole tyre
supplier to British Touring Car Championship for 2003 to 2006 and the V8 Super cars
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Championship from 2002 to date. Dunlop also supplies tyres to the Deutsche
Tourenwagen Masters and the American Le Mans Series.
CEAT LTD: -
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CEAT manufactures largest range of tyres in the industry which incorporate both cross-
ply and radial technology. The range of tyres covers virtually all user segments – from
giant earthmovers to specialty tyres for scooters and motorcycles. The company also
markets tubes and flaps.
APOLLO TYRES: -
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tyres, tubes and flaps. It operates through its subsidiaries namely, Apollo Mauritius
Holdings Pvt Ltd, Apollo Tyres AG, Apollo South Africa Holding Pty Ltd, Apollo Tyres
Pt Ltd, Apollo Tyres Nigeria Ltd, Apollo Tyres South Africa Pty Ltd, Dunlop Africa
Marketing United Kingdom Ltd, Apollo Tyres GmbH and Apollo Tyres Zrt. The Groups
plants located in Kerala and Gujarat. The Group operates in India, South Africa and
Internationally.
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CAHPTER 3 : PRODUCT
33
The group is further diversifying in other fields like Petrochemicals, steel, Drugs
& Pharmaceuticals, Food & Dairy Products, Electronics, Computer Software, Power
Generation, Rubber hoses, etc. The Group exports number of products including Jute
Textiles, Woolen textiles, Readymade Garments, Engineering files, Tyres and Tubes,
Synthetic Fibres, Paper, Marine products, Spices, etc. The entrepreneurial, managerial
and technical expertise available within the J.K. Organization has enabled it to establish
and operate several projects in India and abroad.
Most of the industries promoted and established by J.K. Organization are today the
leaders in their product lines in India. The success of a manufacturing enterprise depends,
especially in a competitive consumer product line, on the efficiency of its manufacturing
and marketing organization and more so in India where the marketing activities have to
be very competitive. In fact, the success of J.K Group of companies is based primarily on
the latest technology, innovation,
and continuous Research & development policies as also on its effective marketing set-
up, which is involved on a sustained basis in:
To cater to the needs of the various consumers for the goods manufactured by the
group and to provide prompt delivery and services, as, when and where required, the
organization has established:
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Over 50 well-equipped branch offices all over the country for distribution, control
and monitoring product lines;
1. New Delhi
2. Mumbai
3. Calcutta and Kanpur
Network of over 5,000 distributors and retailers for distribution and sales
promotion of different products.
Besides the above, the Group has established, wherever required, number of show rooms
for retail trade as in case of woolen Textiles. The large distribution network has enabled
the Group to enter very successfully into many competitive lines of manufacture such as
Paper, Cement, Automobile Tyres & Tubes, Synthetic Fibres, Agrochemical, Cosmetics,
etc. The Group enjoys high reputation for the quality of their products and has been able
to capture reasonably high share of the market within a short time.
The group has in-house setup for handling, advertising, market service, sales
promotion, supply/demand forecast, government liaison and coordination supported by
some of the leading outside marketing and advertising agencies and arrangements with
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diverse media and publicity channels like newspapers, magazines, financial weeklies,
cinema slides, commercials on TV etc., depending on the type of product.
J.K. organization, conscious of its social responsibilities and dedication to improving the
quality of life of its people, strives to serve the community in diverse fields of social
welfare. These include promotion of education, religious and ethical values, provision of
medical and modern living facilities and amenities.
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J.K. Institute of Applied Physics & Technology, Allahabad
J.K. Institute of Sociology & Human Relations, Lucknow
L.P. Singhania Institute of Cardiology, Kanpur
Institute of Digestive & rental diseases, New Delhi (under implementation)
Sir Padampat Singhania Education Centre, Kanpur
Sulochana Devi Singhania Higher Secondary School, Thane, (Maharashtra)
Lakshmipat Singhania Schools at Jaykaypur (Orissa), Jaykaygram (Rajasthan)
and Jaykaypuram (Rajasthan)
Sri Radhakrishna Temple, Kanpur
Sri Dwarkadhish Temple, Kanpur, etc.
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ii. Finding market niches: Price, service, convenience and
technology are some of the niches in Indian market.
iii. Product and service planning: Analysis of the customer’s
promotion of the brand, both of the firm and competitors, besides an analysis of the
situation in which the customer uses the product.
iv. Distribution: Structural changes in inventory management, mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market.
v. Managing for result: With pressure on costs, prices, and margins,
marketers will have to make effective utilization of every rupee spent in marketing.
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Market Industry Competition
segment analysis analysis
analysis
Demand
Trade
Condition
analysis
s
Market opportunity
Size of the market
How well the market is served
Prospective inches
Marketing mix required to succeed
Core competencies required
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Entry Barriers: High
Bargaining
Power of the Bargaining Power of the
Buyers: High Suppliers: High
The OEMs have Inter Firm Rivalry: Low The tyre industry consumes
total control The tyre industry in India is fairly nearly 50% of the natural
over prices. In concentrated, with the top eight rubber produced in the
fact, the OEMs companies accounting for more than country. The price of natural
faced with 80% of the total production of tyres rubber is controlled by
declining Rubber Control Board and
profitability the domestic prices of
have also natural rubber have
reduced the registered a significant
number of increase in recent times.
component
suppliers to
make the supply
chain more
Threat of Substitutes: Low but Increasing
efficient.
During the FY2002, over 1,10,000 passenger
car tyres were imported. This constitutes over
2% of total radial passenger car tyre
production in the country. However, with the
reduction of peak custom duty, the import of
tyres is likely to increase.
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3.3 MARKETING MIX
A Marketing mix is the division of groups to make a particular product, by pricing, product,
branding, place, and quality. Although some marketers have added other P's, such as
personnel and packaging, the fundamentals of marketing typically identifies the four P's of
the marketing mix as referring to:
1. Product
2. Price
3. Promotion
4. Place
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Product
Product range:
BIAS
SIZE TYPE
RIB 9.00-2014PR
JET RIB
9.00-2016PR
JET RIB
10.00-2016PR JET RIB
JET MILES
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9.00-2014PR
TRACK TUF
SEMI 9.00-2016PR
LUG TRACK TUF
10.00-2016PR
TRACK TUF
NORMAL LOAD
8.25-2014PR JET TRACK
9.00-2014PR JET TRACK
MODERATE
8.25-2014PR JET TRACK
LUG 9.00-2014PR JET TRACK
9.00-2016PR JET TRACK
HEAVY
10.00-2016PR TRACK 39 & DX
SUPER HEAVY
10.00-2016PR TRACK 39 DX
RADIAL
SIZE TYPE
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10.00R2016PR JET WAY JUC
SEMI
11.00R2016PR JET WAY JUC
LUG
Price
The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the
price of product if other stores have the same product.
Place
Place represents the location where a product can be purchased. It is often referred to as
the distribution channel. It can include any physical store as well as virtual stores on the
Internet.
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Promotion
Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion. Advertising covers
any communication that is paid for, from television and cinema commercials, radio and
Internet adverts through print media and billboards. One of the most notable means of
promotion today is the Promotional Product, as in useful items distributed to targeted
audiences with no obligation attached. This category has grown each year for the past
decade while most other forms have suffered. It is the only form of advertising that
targets all five senses and has the recipient thanking the giver. Public relations are where
the communication is not directly paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any
apparently informal communication about the product by ordinary individuals, satisfied
customers or people specifically engaged to create word of mouth momentum. Sales staff
often plays an important role in word of mouth and Public Relations.
The term "Marketing Mix" however, does not imply that the 4P elements represent
options. They are not trade-offs but are fundamental marketing issues that always need to
be addressed. They are the fundamental actions that marketing requires whether
determined explicitly or by default.
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3.4 POLICY OF JK TYRES
Quality Management :
ISO 9001: - JK Tyre world’s first tyre company to receive ‘ISO 9001’ certification for its
entire operations in 1995 in one go. Our Quality Management System is completely
integrated into all aspects of our operations.
QS 9000: - JK Tyre the world’s first tyre company to receive Quality Management
System certification ‘QS 9000’, in 1998 for multi location operations. We are using ‘QS
9000’ system as a tool for continuous incremental improvement.
ISO 14001: - JK Tyre recognizes the impact that our business has on the environment
and takes our responsibilities for maintaining harmony with nature. We are the first tyre
company in India to receive ‘ISO 14001’ certification for multi location operations in
1999.
“E-mark” :
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JK Tyre is the only Tyre Company in India having the E-mark certification on
their products, a mandatory requirement for exporting tyres to European Markets.
JK Tyre has the DOT certification on its products, a mandatory requirement for
exporting tyres to US Market.
Jk tyres also have the certification from INMETRO a mandatory requirement for
exporting tyres to Brazil (South America). This is a product as well as a system
certification. Also this is a proof of superior quality of JK Tyre and our ability to meet
stringent international standards.
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CHAPTER 4: ORGANIZATIONAL STRUCTURE
48
49
CHAPTER 5: SWOT ANAYLSIS
SWOT ANALYSIS
STRENGTHS
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• Strong brand image • Very large distribution
• Being quality oriented rather than quantity channel
oriented • Reasonable price
• Large product width & line (product mix) • Effective employee in JK
WEAKNESSES
OPPORTUNITIES
• High growth potential for its exports as demand for JK tyre in Europe increasing.
• Indian customers are mainly value buyers demanding a better overall package. JK is
poised in a better position than other players in the market to capitalise on this
opportunity
THREATS
• Entry of new players with newer and better technologies in the small car tyre
segment
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• So many close competitors like Appolo, Birla, Ceat, Modi, Kaizen etc.
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CHAPTER 6 : CONCLUSION AND SUGGESTIONS
CONCLUSION
• It has been found that Bridgestone and MRF is the market leader.
• The brand image of JK tyre is less in comparison to is competitors.
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• JK Tyres occupies a good position in the market but it is still behind Bridgestone
and MRF.
• MRF Tyres are most durable tyres.
• Radial tyres of JK are competent Radial tyres of JK are competent enough for
heavy load.
• The eco friendly tyre named Green tyre manufactured by JK tyres have an
advantage over the tyres manufactured by its competitors.
SUGGESTIONS
• Improve customer orientation, product quality in all segments. The company shall
reform its distribution policy.
• Prevent discrimination between small dealers and big dealers while providing the
sales promotion schemes and performance rewards and all the dealers should be
treated a like irrespective of their size. For example: MRF and many tyre
companies have equal discounts policies, irrespective of their sizes
• The company should communicate with the dissatisfied consumers & dealers who
have quit JK Tyres and try to offer them better products and services.
• JK marketing people should regularly interact with customers. At the end
aggressive marketing is required.
• JK Tyres can come up with their exclusive dealership in some of the places
which can help in bringing business to the JK Tyres .For instance
1. Pitam Pura (Behind City Park Hotel).
2. Model Town.
3. Nangloi.
4. Ashok vihar
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BIBLIOGRAPHY
WEBSITES
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• www.jktyres.com
• www.Ceattyres.com
• www.mrftyres.com
• www.Apollotyres.com
• www://money.rediff.com/money/jsp/compare_chart.jsp?
codes=10680006a10680007
• www.indiacar.net
• http://www.google.co.in
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