CUSTOMER ATTITUTE TOWARDS INDIAN TYRE INDUSTRY-A STUDY OF JK TYRES LIMITED Author:-Ms Renu Gulia...

IRJMST Volume 5 Issue 3 [Year 2014] Online ISSN 2250 - 1959

International Research Journal of Management Science & Technology http://www.irjmst.com 18

CUSTOMER ATTITUTE TOWARDS INDIAN TYRE INDUSTRY- A

STUDY OF JK TYRES LIMITED

Author:-Ms Renu Gulia

Assistant Professor

Delhi college of arts and commerce,

University of Delhi

Delhi, India.

ABSTRACT

The tyre industry in India grew slowly until 1970's when there was a spurt of

companies entering the market. The tyre industry has evolved from the more basic cross

ply to the more sophisticated radar tyres. Nylon cords that impart low weight and

additional strength to the tyres have also replaced cotton ply. This industry is also driven

by agriculture and infrastructural activity that takes place in the region, as these to have

an impact on the transport sector. In this research paper I have studied “Market Share of

JK tyres in passenger car radial in whole INDIA.’’ JK tyres are manufactured by JK

tyres ltd. In this competitive era of marketing where the satisfaction of customers towards

the product has become first priority. It is very important to analyze the customers’

behavior. Every company determines the price of its products, sales promotion etc.

according to the market requirement. Direct marketing is one of the effective medium

sales promotions because it is directly related to customers. With the help of direct

marketing company enhances its brand image. Without putting customers on top, no

company can get success. To get success every company should target customers because

market is totally customer oriented.

This research paper evaluates the position of JK tyres in the market and the role of

direct & indirect marketing.


International Research Journal of Management Science & Technology http://www.irjmst.com Page 119

INTRODUCTION

In today’s world of intense competition and rapid dynamism, all the companies

worldwide are tuning their focuses on the customer. Suddenly, the customer had

succeeded in capturing all the attention of the companies towards him, so much so, that

the once famous maxim, “customer is the god” has become so true and relevant today.

There has been a “paradigm shift” in the thinking of these companies and none other then

the customer has brought this about.

Earlier there was a sellers market, since goods and services were in short supply

and the sellers use to call the shots. But, ever since the advent of the era of globalization,

there has been total transformation in the way the customers being perceived. Today,

marketers are directing their efforts in retaining the customers and customers’ base. Their

focus has shifted towards integrating the three elements people, service and marketing.

The customer’s importance has assumed imponderable proportions in today’s

world, because of the inherent value that the customers command. A customers can

“make or break” a company. It is the responsibility of every company to see that all its

customers are equally satisfied with them, for one single dissatisfied customer will tell at

least nine others about the dissatisfaction and will spark off a chain reaction and spell

doom for that company. In such scenario, retention of the existing customers assumes

diabolical proportion. Research has thrown light on some important aspects of customers’

retention it has been proved empirically that acquiring new customers can cost five times

more than the cost involved in satisfying and retaining current customers.

In the past, the customers was taken for a ride, as there were not many players in

the fields, not much importance was attached to product safety, quality, service and

product appeal. The attitude of the manufacture was that of “caveat – emptor”. Thanks to

the government policies on liberalization, globalization and privatization (LPG), the

market scenario has changed today. Today, the customer has a host of defense

mechanism like the customers protection laws, regulation of the government, the

powerful hands of the organization, customers’ courts, switching to substitute or



competitors that offer at competitive prices, etc. The maxim,” caveat – emptor” has been

replaced by “caveat vendor”.

In the past, after sales service was consider as a cost center, Companies were

lethargic in attending to customers complaints. Availability of trainee service personal

and quality genuine spare parts posed serious problems. However, with the rising

competition, there could not be much product differentiation, as price and quality were

comparable and latest technology was to each and every company in the field. Since,

there could not be much differential a tangible assets, the companies concentrated on the

“intangible assets”, namely the “service factor”, which served as a major differentiator.

Today after sales service is an important aspect of every company, and it is no more

considered as a cost center, but considered as a profit center. Every organization strives

hard to retain its existing customers at any cost since it is five times costly to get new

customers, then to retain existing customers. Today most of the industries use

information technology to provide best services to their customers.

HISTORY OF JK TYRE COMPANY

Jk tyre and industry limited was incorporated in 1951 and is headquarter in new

delhi,INDIA.The company offers its products &services through a network of dealers

under Jk tyre and Vikrant brand names, and range of franchised retail outlets under the

JK tyre steel wheels brand name, as well as exports tyres to approximately 90 countries.

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.

Over the years, the company has expanded and diversified its business portfolio.

The advent of JK Organization on the industrial landscape of India almost synchronizes

with the beginning of an era of industrial awareness - an endeavor for self reliance and



the setting of a dynamic Indian industry. This was way back in the middle of the 19th

century. And the rest that followed is history.

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.

JK Organization is an association of industrial and commercial companies and charitable

trusts. Its member companies, employing nearly 50,000 persons are engaged in the

manufacture of a variety of products and in diverse fields of commerce.

Trusts are devoted to promoting industrial, technical and medical research, education,

religious values and providing better living and recreational facilities. With the spirit of

social consciousness uppermost in mind, J.K. Organization is committed to the cause of

human advancement.

Manufacturer Association and other authentic industry sources.

When JK tyre claimed for its leadership on the basis of production figures, its

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 ASCII’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

colored tyres as well as steel-belted tractor rear radials.

MARKETING STRATEGY

Strategic thinking is key to the evolution of successful marketing strategies of JK tyre.

This involves the following analyses:

Understanding markets: Strategic perspective of the market requires skilful analysis of

the trend and how they affect the market size and demand for the firm’s product.

Finding market niches: Price, service, convenience and technology are some of the

niches in Indian market.

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.

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.

Managing for result: With pressure on costs, prices, and margins, marketers will have to

make effective utilization of every rupee spent in marketing.

MARKETING OPPORTUNITIES OF JK :

Despite economic uncertainties prevailing for quite sometime, there is renewed

optimized and forecast for the Indian economy in particular. It is clear that undamentals

of India’s growth story are intact though intermittent ups and downs will continue.



Huge investment is underway in the automotive sector in the country for enhancing

capacities across various segments. It is believed that the present low vehicle

penetration offers potential opportunities and the factors such as life style aspirations,

focus on organised, retail, large investment for developing and improving road

infrastructure etc, will propel the demand of automobiles in the passenger car as well as

commercial vehicle segments.

India is also emerging as a hub of automobile manufacturing for catering to the export

markets. These factors will create huge demand for automobile tyres in the times to

come.

GOALS OF J.K AND THE ENVIRONMENT

At Apollo, we are committed to protecting and respecting the environment.

Leading vehicle manufacturers use our tyres as original equipment because they trust and

respect our quality, development techniques and innovation. However, this alone is not

enough. We must also meet the demands of the environment by adopting sustainable

practices and using our resources more efficiently. We practice the latest manufacturing

and management techniques and work only to the highest standards as outlined in

international standards.

In practice

Here are some of our activities:

Introduction of an Environmental Management System (EMS) as part of our

integrated quality, environment, health and safety management system.

Promotion of EMS to our customers, suppliers and contractors.

Environmental performance targets to meet our legal, operational and business

requirements.

Regular audits and reviews on our environmental performance

Environmental awareness training for all directors and senior management.

Appointment of environmental co-coordinators to ensure our EMS is

implemented and maintained in line with ISO 14001.

Continual re-alignment of our environmental policy and business objectives



Methods of data collection

The key for useful systems is the selection of the method for collecting data and linking it

to analysis and decision issue of the action to be taken.

The accuracy of the collected data is of great importance for drawing correct and

valid conclusions from the detailed investigations.

There are two types of data primary and secondary.

1. Primary data: - The primary data are those which are collected a fresh

and for the first time and thus happen to be original in character. There are several

methods of collecting primary data. I used observation and questionnaire methods

for collecting data and to enhance the quality of this research paper.

2. Secondary data:-Secondary data are used means that are already available

i.e. they refer to the data which have already been collected and analyzed by

someone else and which have already been passed through the statistical process.

Secondary data may either be published data or unpublished data. I used internet

as the main source of secondary data.

COLLECTION OF DATA THROUGH OBSERVATION

We also use this method for the purpose of data collection. In this method we

have taken the sample of 100 vehicle models like INDICA, SENTRO, WAGONR,

TATA SUMO, TOYOTA, ZEN, SCORPIO, BMW, SWIFT, OCTAVIA, JAZZ, and

QUALIS etc (four Wheelers in Passenger Car Segment).

Through my personal observation I have observed the tyres used in the above

models and presented them graphically.

UTILITY: - From the collection of data we analyses the consumer behavior &

market share of various brand of J.K Tyres & take valuable information of tyre industry.

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN



When we asked about the general rating that customers might give to J.K Tyres

has whole the feed back that they gave was as follows approx 23% customer said that J.K

Tyres is excellent and 56% customer said that J.K Tyres is very good, 21% customer said

that J.K Tyres is average and no body said that Apollo Tyres is below average.

.

When asked about where do most of the customers go for purchasing Apollo Tyres the

feed back that were received from customers are as follows around 75% customer said

that they purchase J.K Tyres from the exclusive dealer of J.K Tyres, 20% customer said

that they purchase from Mud’s (Multi brand dealers) so that they could make a

comparison of cost between J.K and other brands available and rest 5% customer said

that they purchase J.K Tyres from other tyres traders.

When asked about how easily customer get J.K Tyres the response was follows approx

82% customer said that they get J.K Tyres very easily whenever they require them from

the nearest dealer and 18% customers said that there is always a scarcity of the most

popular brands of J.K Tyres Ltd. .

% AGE OF SATISFIED AND DISSATISFIED USER OF J.K TYRES



The 83% customers are fully satisfied with the J.K Tyres and just 17% customers are not

satisfied with the J.K Tyres. Customer said that the quality of J.K Tyre is very good.

Tyre is very costly but the performance of J.K Tyre is better than other tyres. They said

that the claim policy of J.K Tyre is very good. Several customers are very friendly and

the Co-operate in our work but few customers behaved very rudely. Customers are happy

with the campaign and they said that they gain a lot of knowledge from the campaign and

they said that campaign should be organized continuously in different area.

These things give me a good experience and obtain good knowledge about

customer’s attitude.

CONCLUSION

Automotive market in India seems to offer opportunity for growth, in India, and it

is hopeful of increasing market share in high performance tyre segment. The new

range of products also comes as an aggressive move towards the expansion plans

for India which has an earmarked apex of Rs.1430cr to increase JK trucks and bus

radial capacity by additional 8 lac tyres per annum and car radial capacity by

another 20 lac tyres per year at Chennai.

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Outline source:

www.jktyre.com

CUSTOMER ATTITUTE TOWARDS INDIAN TYRE INDUSTRY-A STUDY OF JK TYRES LIMITED Author:-Ms Renu Gulia...

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