escort final
TRANSCRIPT
SUMMER TRAINING PROJECT REPORT
ON
“MARKETING STRATIGIES OF THE COMPANY”
In Escorts Auto Component Ltd. (EACL) Submitted Towards the Partial Fulfillment of the Requirement for the Degree of Master of Business Administration
Session (2007-2009)
Submitted To: - Submitted By: -Controller of the Examination Dheeraj birara
MDU Rohtak 3RD SEMESTER
Roll No- 314
Institute of Management and technology, Faridabad
(Approved by AICTE & Affiliated to Mahrishi Dayanand University, Rohtak)
Near Sai Dham, Tigaon Road, Faridabad-121002
NBA-AICTE accredited Institute
PREFACE
Master of Business Administration (MBA) Programme is one of the most reputed professional course in the field of management. This course includes both theory and its application, as its content of curriculum industrial training is an integral part of MBA. Each student is required to undergo a practical training in an organization for a period of eight week after the completion of his or her second semester examination and before starting of the third semester. The purpose of this training is to expose the students on the practical front in almost all functional areas of an organization. The training gives a unique experience to aspirants who can visualize things what they have been taught in classroom.
I was fortunate enough to have the opportunity to eight week summer training in Rampur Distillery, a unit of Radico Khaitan Limited, one of the leading liquor company in the world. As a complementary to training, every trainee has to prepare and submit a report. It is an attempt to present an account of practical knowledge and observation gathered during the summer training.
CONTENTSCONTENTS
TOPICS PAGE NO.
1. SYNOPSIS 1
2. INTRODUCTION 3
ESCORT PROFILE 4
ESCORT GROUP 7
COMPANY MISSION 11
EACL PROFILE 17
3. METHODOLOGY 29
4. FINDINGS 31
MARKETING 31
STRATEGY 53
SURVEY 68
DEMAND ESTIMATION 70
5. LIMITATIONS 146
6. CONCLUSIONS 148
7. RECOMMENDATIONS 152
8. APPENDICES 156
9. BIBLIOGRAPHY 173
SYNOPSISSYNOPSIS
This project report in on Escort Auto Component Ltd. a solely
owned subsidiary of Escorts Ltd. Escorts Ltd. is one of the
leading business houses of India.
The project covers the in-depth history of Escort Ltd. and its
subsidiary Escort Auto Component Ltd.
The company is manufacturing industrial product (carburettor,
clutch, oil pumps) for two wheelers industry. The carburettor
manufactured by this company is marketed all over India under
the brand name MIKCARB.
The two fields which is covered in this project report is
1. Marketing
2. Human resource management.
The project highlights the various marketing strategies the
company has adopted, in relation to product, price, place and
promotion.
The company had adapted to marketing concepts
- Original Equipment Marketing
- Replacement marketing
In OE marketing company is selling carburettor to the original
equipment manufacturers like Bajaj Auto, Royal Enfield,
Majestic Motors, TVS Suzuki, Kinetic Engineering, LML &
Hero Honda Motors Ltd.
Company has a fresh experience in the replacement market.
Escort Auto is manufacturing carburettors for Hero Honda,
Bajaj & LML in this field. These are directly sold through
dealers all over India.
INTRODUCTION OF THE COMPANYINTRODUCTION OF THE COMPANY
OBJECTIVE
The objective of the project report is to have an in-depth
knowledge of
- How industrial marketing is done
- To analyse marketing strategies of the company
- In-depth study of human resource management system
adopted by the company.
- Lastly to recommend the company about what all they can do
in the field of marketing and human resource.
PROBLEM
Company is facing losses for the reason that it has lost its
major OE consumer Yamaha Motor Escort Limited. Company
is also facing problem in the field of replacement market. The
company has just ventured into this market and is facing tough
competition and though finding ways to fight with it.
ESCORTS PROFILEESCORTS PROFILE
Escorts come into being with a vision that was nurtured by Mr.
H.P. Nanda and late Mr. Yudi Nanda. The foundation of Escorts
Ltd. was laid in the formation of Escorts (agent) Ltd. on 17 th
October 1944 and Escorts (Agriculture and machines) Ltd. in
1948. These two were later merged in 1953 to form Escorts
Agent Pvt. Ltd. the company's incorporation in present name
Escorts Ltd. was effected on 10 th January 1960.
Having initially started with a franchise for wasting house
domestic appliance ESCORTS has come along way in
manufacturing and marketing a range of product. It has
pioneered the farm mechanisation India through import and
distribution of agricultural tractors.
With its 19 manufacturing plants spread over 6 location, 2400
employees and a large network of dealers and distributors
ESCORTS today rank amongst the top 20 engineering
organisation in the country.
Till 1995 the company principal activities were trading and
representing several leading overseas for the sale of their
products in India. The company progressively entered in the
field of manufacturing establishing a series of manufacturing
plants.
The ESCORTS Group today headed by Rajan Nanda, rank
among the countries leading multi product industrial
conglomerated having collaborations with several global giants.
It has a strong presence in the core areas of Agri machinery,
Bi-wheeler construction and material handling equipment, auto
and railway ancillaries, telecommunications and finance. A
chronology of business actives is listed below.
1954 : Piston rings and cylinder liners
1960 : Piston
1961 : Assembly of tractors
1962 : Motorcycle and railway couplers
1963 : Automobile shock absorbers
1965 : Agricultural tractor under 'Ford' Brand name
1969 : Agricultural tractor under 'Ford' Brand name
1971 : Industrial and construction Equipment
1979 : Excavator loaders
1981 : 100 C.C. Motorcycles
1985 : Electronic PABX's
1991 : Harvester combines
1992 : V-sate Satellite Communications
1993 : Mobile Communications
1995 : Fork lift trucks
1996 : Disengagement of joint venture collaboration with new
Holland and launch of FARMTRACK tractor.
ESCORTS GROUPESCORTS GROUP
The Escorts odyssey, which began in 1944, from agency to
manufacturer to diversified industrial conglomerate, is a classic
study in corporate planning and business development.
Today Escorts ranks among the country's leading multi-product
industrial group having several international collaborations,
employing over 20,000 people with a turnover of Rs. 22, 000
million.
Beginning as a small agency house in Lahore in 1944, Escorts
after independence gauged the need for modernising agriculture
and pioneered farm mechanisatio in the country. It set up the
first dealer network of its kind to market tractors it was to
import. Simultaneously the company established a school of
farm mechanisation to educate farmers on use and benefits of
farm mechanisation. Escorts soon became the number one
tractors selling company in India.
Meanwhile, the company branched into manufacturing Pistons
rings in India in collaboration with GOETZEWERKE of
Germany. Since then Escorts has all along been diversifying and
growing steadily.
Currently, various group companies of Escorts manufacture
tractors, harvester combines, motorcycles, construction
equipment, auto and railway ancillaries, and Tele and satellite
communication equipment.
In the last five decades, Escorts growth has been fuelled by the
best available technology the company has acquired from
several global giants. Among them are Goetzawerke, Mahle and
faun from Germany, Yamaha Motor Co. and Kayaba from Japan,
JCB Amford Excavators Ltd. from the U.K., Hughes Network
System from the U.S.A. and Daewoo from Korea.
Organisations restructuring initiated by the company recently,
aims to consolidating competitive strength in the six core areas:
Farm machinery, Bi-wheelers, construction and material
handling equipment, engineering and auto ancillary products,
telecommunication and financial services. The resultant
transformation would enhance the company's volume in the
Indian as well as over seas markets. The group envisages to
cross the Rs. 75,000 million by 2000 AD
During the course of its growth Escorts has also remained a
responsible corporate citizen, ever conscious of its commitment
towards the welfare of society in general and the community and
environment in which it has adopted over 60 villages, Escorts
Hospitals and Research Centre at Faridabad and Escorts Heart
Institute and Research Centre and crowning examples of the
company's belief that the welfare of business is inter wined with
the welfare of society.
ESCORTS BUSINESS REVIEWESCORTS BUSINESS REVIEW
AGRI MACHINARY AUTO COMPONENT
AUTOMOBILE
Tractors
Escorts Farmatrac
Harvester Combines
Piston, Piston Pin &
Piston rings Cylinder
liners
Aluminium Cylinder
Blocks.
Power metal component
Shock absorbers, Front
Forks
And stouts,
Carburetors,
magnetos, clutches
BI-WHEELERS
MOTORCYLCE
RAILWAYS
Yamaha – RX 100
Yamaha RX-G
Yamaha RX-Z
Rajdoot
Mopeds
Air brakes
Coupes
Synthetic brake blocks
Electro pneumatic brakes
Shock absorbers
CONSTUCTION EQUIPMENT TELECOM
Pin N carry cranes
All terrain pin N carry cranes
360 angle slew cranes
Agriculture Boom cranes
Front end loaders
Fork lifts, Aerial
Platforms, excavators
Vibratory Rollers
Backhoe loader
Cellular Telephone
services
VAST service
EPABX service
FINANCIAL SERVICES
Car finance
Commercial Vehicle France
Securities Trading
Personal Investment
Advertising
Consumer Finance
Equipment Leasing
COMPANY’S MISSIONCOMPANY’S MISSION
We strive to be strongest and most respected engineering
company in the country. We will achieve this by dearly
positioning our self in a competitive environment enhancing its
brand equity international quality products, market leadership,
enlarged customer base, better cost control and pricing
opportunities. We feel responsible to our employees and we
must recognize their dignity and recognize their merit. Each one
of us must uphold the core value of professionalism,
commitment and integrity in keeping with the highest tradition
of the company.
As responsible corporate citizens, we must not only encourage
civic improvement, better health and education but also protect
our environment and natural resources.
Finally we are responsible to our shareholder and for this
business must make a sound profits and thus to be investor
attractive.
We must experience with new ideas, new facilities and new
products. When we operate on these principles, the shareholder
should realise a fair return.
ESCORTS STRATEGIC ALLAINCES
GERMANY
GOETZE AG
MAHLE Gmbh
CLASS OHG
FAUN Gmbir
KNORR BREMSE Gmbh
AUGUST BILSTEIN Gmbh
HERION-WERKS Gmbh
PISTON RINGS&CYLINDER
LINERS
PISTONS
HARVESTER COMBINES
HYDRAULIC CRANES
RAILWAY BRAKE SYSTEMS
GASSPRESSUER SHOCK
ABSORBERS
HYDRAULIC PRODUCTS,
SWITCHES AND
AUTOMOBILE VALVES
JAPAN
YAMAHA MOTER CORP.
KYESBA INDUSTRY
CO.LTD
MIKUNI SHOKO CORP.
MOTORCYCLES
TELESCOPIC FRONT FORKS
MC.
UK
JC BAMFORD
EXCAVATORS LTD
AGRICULTURAL TRACTORS
FRANCE/SWEDEN
J.S. TELECOM GROUP
BOSCH DYNAPAC HEAVY
EQUIPMENT AB
ELECTRONIC PABX
ROAD CONSTRUCTION
EQUIPMENT
USA
HUGHES NETWORK
SYSTEMS
VAST SATELLITE
COMMUNICATION
SYSTEMS
SOUTH KOREA
LGI-LUCKY GOLDSTAR
GROUP
STAREX-VSE, DIGITAL,
NON BLOCKING EXCHANG
SYSTEM
MARKET SHARE OF ESCORTS GROUP
Products Market Share (%)
Agri Machinery 19.07
BI-Wheeler 28.3
Excavators Loader 86.00
Pick ‘N’ Carry Cranes 70.00
Loaders 85.00
Forklift 9.70
Piston 45.00
Rings 45.00
Shock absorber 22.00
Heavy duty shock absorber 85.00
Carburettor 15.00
Center buffer couplers 100.00
Vacuum controls valves 95.00
Electro pneumatic brakes 72.00
Compressed air brakes 38.00
COMPANY PROFILECOMPANY PROFILE
Escorts Employees Ancillaries Ltd. (EEAL), incorporated on
25th August 1971, enunciated a unique concept of employee's
participation in the ownership of the company. Initially the
business of the company was restricted to trading which was
carried out from Delhi and Faridabad production of carburetor
from January 1978. Manufacturing activities of the company
started with the commencement of commercial in technical
collaboration with M/S MIKUNI of Japan.Company analyse
changed its named to Escorts Auto Component Ltd. (EACL)
in August last year.
Today with a Turnover of Rs. 275 million and strength of
394 people, EEAL is one of the most modern, high precision
auto ancillary plants in the country manufacturing Carburetors,
spokes nipples, clutch assemblies and pressure die casting
components for the Bi-wheeler industry. We are popularly
recognized as “MIKCARB” (our brand) in the auto mobile line,
our carburetor are being manufactured to suit Bi-wheelers
ranging frame 50- cc to 500 cc and are original equipment with
the most of the motorcycle/moped manufacturers in India,
besides marketing its product through a wide dealer network
spanning the entire country.
In addition To bring OE supplies of carburetors to major two
wheeler manufacture e.g. Escorts, Bajaj, TVS Suzuki,
Kinetic Engg, Enfield India, Hero Motors, EACL Markets its
products through a wide dealer networks, spanning the entire
country. The welfare shop (Owned by EACL) is also the model
dealership for Escorts range of motorcycles, Mopeds, Regional
Trading activities of companies e.g. Philips India, Advani
Oerlikon, Cut past Abrasine tools, Grind well Norton, Chiago
pneumatic are also handled by the welfare shop.
Diversification and growth a continuous process at EACL
backed by a strong research and development idea is poised to
meet tomorrow’s challenges today.
HISTORY
1971 : Incorporated as public limited company technical
collaboration-Carburettor – Mikuni, Japan.
1973 : Trading activity started
1978 : Carburettor production commenced
1980 : Technical collaboration
M/s Hoshi, Japan-Spokes & Nipples
M/s Fuji Chemicals, Japan-Clutch
1984 : Pressure die-casting poetrations commenced
1988 : Export of Carburettor to USSR
1993 : Up-gradation cum capacity expansion of Carburettor
production
1996 : Carburettor shed expansion (covered area nearly 2
times). Introduction of down draft Carburettors
planned.
ESCORTES EMPLOYEES ANCILLARIES LIMITED
AT A GLANCE
Year of commencing
production
: 1978
Company promoted by : Escorts Limited
Products Manufactured : Carburettors
Pressure Die-Casting
Clutch Assembly
Spokes and Nipples
Technical know-how : Carburettors-Mikuni, Japan
Clutch Assembly-Fuji
Chemical, Japan, Spokes &
Nipples-Hoshi, Japan
Installed Capacity : Carburettors-6, 00,000 Nos.
Clutch Assembly-10, 00,000
Nos.
Spokes & Nipples-10, 00,000
Nos.
Land & Building : 35000 SQ. M (LAND AREA)
7268 SQ. M. (COVERED
AREA)
No of employees : 394
Gross Block : Rs. 150 millions
Production Volume
(Caburattors)
: Years
1992-1993
1993-1994
Nos.
215076
279999
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
357877
445705
478500
491150
380500
444369
99737 till May
Cumulative Production Approx.
56 Lacks
Turn Over : Rs. 16.34 million
Shareholding Pattern : Shareholders % of Holding
Escorts Group 58.00
Financial Institutions .62
Others (EMPLOYES/
Dealers/Venders) 41.38
Total 100.00
Others Trading Business : YAMAHA MOTOR ESCORTS
LTD.
Motorcycle/Mopeds,
Accessories and spare parts.
ADVANI ORLIKON LTD
Welding sets, Welding
Electrodes and spare sets.
PHILIPS INDIA LTD.
Phillips MAKE Domestic
Luminaries and Industrial
Fittings/Fixtures.
Present Customers : Escorts Yamaha Motor Limited,
Faridabad.
Escorts Yamaha Motor Limited,
Surajpur,
Bajaj Auto Limited,
Pune/Aurangabad
Hero Motors, Ghaziabad.
Majestic Auto Limited,
Ludhiana
Royal Enfield Motor Limited,
Chennai
TVS-Suzuki Limited, Hosur.
Kinetic Engg. Limited Pune
Scooter India Limited,
Lucknow
MARKET SHARE 2000 : 11%
Distribution Network
(Carburatter & spares parts
in DEALERS Replacement
Market)
: Zone
North (Haryana,
Punjab, Delhi, UP,
Rajasthan
South
(Tamil Nadu,
Karnataka, Kerala,
A.P.)
East
West Bengal,
Andaman, & Nicobar,
No.
of
18
20
09
Bihar and Orissa
West
Madhya-Pradesh,
Gujarat, Goa, &
Maharastra
15
Total 62
CARBURETTORS UNDER DEVELOPMENT
Customer Product
Bajaj Auto Ltd. K-4S 110 cc Motorcycle –4S
Sunny Export 50 cc Scooter-2S
Bajaj Scooter 150 cc Scooter –2S
M50 cc Setup Thru-2S
Escorts Yamaha Motor
Ltd.
Toro 50 cc Moped-2S
TVS Suzuki Ltd. TVS Champ 60 cc Moped 2S
Kinetic Engg. Ltd. 4S-100 cc Motorcycle-4S
Brat-7 cc Step Thru 2S
Royal Enfield Ltd. Bullet 535 cc Motorcycle-4S
Bullet 624 cc Motorcycle-4S
PLANTS HIGHLIGHTS
Proven MIKUNI design and manufacturing technology
Quality reliability in built into manufacturing processes.
MANUFACTURING FACILITIES
Flexible manufacturing machine/dedicated SPM’s
All critical machines from Japan/Switzerland.
Ultrasonic clearing facility.
Precision and functional parts manufacturing in house
Continuous up gradation of manufacturing facility 25% of
Gross Block invested in last two year.
State of the Arts Machine for jet making.
Precision part/assembly manufacturing in dust free and AC
environment.
SUPPORT FACILITIES (INHOUSE)
Tool Room
Pressure Die-Castings
100% in house Power Generation
Connected Load – 1066.50 KWB generation capacity- 1100
KVA
ENGINEERING AND R & D BACK UP
Tool design in house expertise available.
Tool manufacturing facilities equipped to meet jigs, fixtures
and die-casting tooling requirements.
Special purpose machines-design and manufacturing facilities
available.
Qualified and experienced manpower
Chassis Dynamometer available for in house testing.
QUALITY ASSURANCE
In–built on line inspection stages/facilities high product
quality and reliability.
Latest equipment available most imported from Japan, Italy,
West Germany and Switzerland.
Carburettor fuel flow Toning Equipment.
Pilot Circuit Testing Equipment
Main Circuit Testing Equipment
Fuel Level Checking Equipment.
Cosmo Leakage Tester.
3 Co-ordinate Measuring Machine.
Surface finish Tester.
Well-equipment meteorological facilities.
Fully equipped Chemical/Metallurgical Laboratory.
Self-contained distillation plant for Carburettor flow checking
and calibrating fluid.
METERIALS AND VENDOR DEVELOPMENT
Nearly 50 vendor supplying over 300 bought out parts.
Bought out materiel contents 40% by value for carburettors.
Import value of special raw materials and components – 7% of
total bought out.
Technical and financial support to vendors for critical
components
High inventory turnery ratio-10
Single window service to vendors
Healthy vendor – Buyer relations based on term- dealing
concept.
OTHERS SUPPORTS
Escorts R&D facilities available
Training of manpower at all levels
ISO 9001
EEAL has ISO 9001 certificate this certificate has a different
benefits which are as following. This certificate also shows that
the company has its own design and Research for the product.
BENEFITES
1. Quality up gradation through documented system.
2. Increase profitability by reducing quality cost scraps
reworking.
3. Meets customer satisfaction and aspiration.
4. Prevents recurrence of fault and reduce fire fitting.
5. Makes company more competitive.
6. Global recognition.
7. Improve communications through inter linkage.
8. Improves company productivity.
9. Improves house keeping.
10.Focuses on individual development through continuous
training.
11.Ensure achievement of quality policy and its objective.
Research MethodologyResearch Methodology
The methodology opted for the collection of data for this
project report is
1. Secondary sources
2. Primary sources
3. market research
Secondary sources: The information collector about the
profile of the company was collected by various sources like
Internet and Delhi Stock Exchange Library.
Prime sources: In this project the information collated,
basically depends upon primary sources. Interview of various
person was conductive from time to time. These interviews was
conducted for marketing department, human resource
department and new projects department.
The information collected was handle with extensive care and
was duly arrange in a set format.
Market Research: A Small market research was conducted in
Faridabad to know the actual performance and brand image of
the Carburettor. A conclusion from the samples is also
mentioned in the project.
MARKETING DEPARTMENT
MARKETING CHIEF
MANAGER MARKETING (O.E.)
SR. MANAGER (SERVICE)
MANAGER MARKETING
(REPLACEMENT)
SECRETARY
TYPIST CUM OFFICE ASST.
SUP SUP SUP
NORTH (EAST ZONE)
(SOUTH ZONE) (WEST ZONE)
INPLANT SERVICE MAN
TRAVELLING SERVICE MAN
TRAVELLING SERVICE MAN
SUPERVISOR (EXERCISE)
SUPERVISOR (PAYMENT & COLLECTION)
SUPEVISOR (CASTING &
PRICING)
TRAVELLING SERVICE MAN
ASSISTNAT (DESPATCH)
ASSISTNAT (CUSTOMER ACCO.)
SALE DATA IN 1991, 1992,1993,1994 (BY ACMA REPORT)
FOR 1991 1992 1993 1994
Rajdoot 175 cc 90121 75220 56612 45188
Yamaha Rx 100 75251 71718 68071 64120
Bajaj KB 100 12418 16120 34971 40791
Bullet 350 cc 25031 22178 203281 17283
Explorer 9156 12218 4982 16829
Bajaj Z 80 52448 64537 79040 81049
Hero puch 50680 62248 72551 75525
BY FORMULA ESTIMATION OF MIKCARB
CARBURETTOR
FOR 2001 2002 2003 2004
Rajdoot 175 cc 22530 18805 14153 11297
Yamaha Rx 100 18812 17929 17018 16030
Bajaj KB 100 3104 4030 8742 10197
Bullet 350 cc 6257 5544 5082 4320
Explorer 2289 3054 3745 4207
Bajaj Z 80 6556 8043 9880 10131
Hero puch 6335 7781 9069 9441
Total Estimated demand
65883 65186 67689 65623
GRAPHICAL REPRESENTATION OF EST.DEMAND
MANUFACTURING
1538 lacs
PRODUCTIVITY ANALYSIS
ESTIMATED DEMAND (BRAND-WISE)
OUR VALUED CUSTOMER
EEAL'S MARKET SHARE (%age)
EEAL'S SALES TURNOVER ANALYSIS
MASTER RECORDS
APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH
PRODUCTION
DESPATCH (NOS)
36660
33348
37112
32005
28475
24950
24600
24925
30395
30395
26700
30408
29350
31419
38000
41293
50000
46082
50500
51098
47000
50525
48150
50067
COLL. EEAL
(LACS) MIL
WFS
86.62
64.12
65.61
157.63
218.58
57.88
154.01
134.34
60.08
112.37
106.24
57.11
107.58
92.20
60.60
161.99
131.90
46.28
144.25
144.47
59.91
108.25
134.59
63.60
156.70
183.63
66.53
189.63
161.18
84.11
158.80
78.84
185.14
101.41
SALES M/CY.
(NOS) CARB (R)
50
3099
24
5099
26
5899
18
5699
13
5399
37
5099
31
4399
74
5199
63
5599
79
6999
112
7099
262
7299
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 TILL MARCH 00)
TURNOVER
(EEAL +WFS) (CRORES)
WFS
MIL
12.48
4.12
3.42
11.49
3.71
5.29
12.14
3.99
5.06
15.92
3.49
6.20
21.42
4.94
8.48
27.45
8.03
10.61
27.11
8.35
14.41
25.16
7.89
15.33
20.26
6.7
12.78
27.76
8.79
2.31
0.73
CARBS (P)
(NOS)
275940 210772 212254 2865530 364432 445705 479300 491150 380500 444000 37000
37031
CARBS (D)
(NOS)
263647 219204 215076 288446 357877 443421 486935 483970 386032 444369
CARBS (D) REPL
(NOS)
12890
12890
17540
17540
15911
15911
12982
12982
29736
29736
31436
31436
36904
36904
47674
47674
56716
56716
65969
65969
5498
5498
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 66
MASTER RECORDS
2000-01 APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH
PRODUCTION
DESPATCH
(NOS)
47606
46400
52125
52058
54570
44040
BILLING EEAL
WFS
225.73
100.76
202.63
100.00
179.07
86.33
SALES M/CY.
(NOS) CARB (R)
231.88
110.24
153.80
110.06
190.08
77.03
PAST PERFORMANCE
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-Z01 (TILL JUNE)
TURNOVER
(EEAL + WFS) (CRORES)
WFS
MIL
12.48
4.12
3.42
11.49
3.71
5.29
12.14
3.99
5.06
15.92
3.49
6.20
21.42
4.94
8.48
27.45
8.03
10.61
27.11
8.35
14.41
25.16
7.89
15.33
20.26
6.7
12.78
27.76
8.79
8.94
2.67
CARBS (P)
(NOS)
275940 210772
212254
2865530 364432
445705
479300
491150
380500
444000
154301
CARBS (D)
(NOS)
263647 219204
215076
288446 357877
443421
486935
483970
386032
444369
142498
CARBS (D) REPL
(NOS)
12890 17540 15911 12982 29736 31436 36904 47674 56716 65969 14297
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 459
Monthly Sales & Purchase of Carburettor & Spare Parts
1999-00
As On
Sale
S.No. MODEL Apr. May. Jun. Jul. Aug. Sep. Oct. Nov.
Dec.
Jan. Feb. Mar.
1 Model 897 1224 1596
2 Rajdoot 826 887 1359
3 Yezdi 41 83 31
4 Vijay super 23 35 130
5 Silver plus 25 143 218
6 Explorer 61 61 124
7 Bajaj Z-60 1325 2296 1562
8 Hero Puch 200 218 344
9 TVS Super Champ (VMX) 25 9 19
10 Scooter (XLS) 57 3 108
11 RX - 100 52 29 12
12 KB - 100/125 7 0 0
13 Bullet -500 3 0 7
14 Sunny Zip 32 42 24
15 Hero Winner 0 6 0
16 Kinetic Pride 5 13 41
17 H.Gizmo 15 7 7
18 Bajaj Chetak 0 0 0
19 K4S 5 43 17
Total 3599 5099 5599 0 0 0 0 0 0 0 0 0
Ave. Value 457.63 440.28
463.84
Sales Value of Carburettor & Spare Parts
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov.
Dec.
Jan. Feb. Mar.
A Carburettor 16.47 22.45 25.97
B Spares 2.10 2.94 3.11
C Float &n Gasket (SPD) 0.53 0.91 0.71
Total 19.10 23.30 29.79 0 0 0 0 0 0 0 0 0
S.No. MODEL Apr. May. Jun. Jul. Aug.
Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total
1 Rajdoot 1140 1001 2540 46812 Bullet 0 0 0 41933 Yezdi 0 0 0 04 Vijay super 500 220 05 Silver plus 0 0 0 7206 Explorer 660 2840 3258 07 Bajaj Z-60 0 491 500 67668 Hero Puch 0 9 0 9919 TVS Super
Champ (VMX)0 0 500 9
10 Scooter (XLS) 50 0 40 50011 RX - 100 0 0 0 9012 KB - 100/125 0 25 0 013 Bullet -500 0 0 0 2514 Sunny Zip 0 0 0 015 Hero Winner 0 0 50 5016 Kinetic Pride 0 160 0 16017 H.Gizmo 0 0 0 018 Bajaj Chetak 6 0 144 15019 K4S 0 200 0 200
Total 2468 5904 10615 0 0 0 0 0 0 0 0 0 18625
PRODUCTION & DESPATCH STATUS APRIL 2000
MODEL PRODUCTION
DESPATCH
OE SPD WFS TOTAL
RAJDOOT 11460 9160 1000 1140 11300RAJDOOT 1K1 0 0 0 0 0YAMAHA RX-100 2115 1690 0 50 1740BULLET - 350CC 3780 2506 800 3366SILVER PLUSEXPLORERTVS XLS 100 100 100TVS VMS 360 450 450Z- 80 9350 8061 840 8901SPIRIT 6280 5945 5945KB - 125KB - 4S/BOXERSUNNY ZIPHERO PUCH 6505 6620 6160HERO SCOOTER 1320 1302 1302HERO GIZMO 595 400 400KEL PRIDEKET SX 5725 6160 6160LML TRENDYYEZDIVIJAY SUPERDD CHETAK 6 6 6HONDA 10 10 10GIZMO - 4S 100 100
SAMPLE TOTAL 47606 42504 1000 2396 46400MKTG/RNS
PRODUCTION & DESPATCH STATUS MAY 2000
MODEL PRODUCTION
DESPATCHOE SPD WFS TOTA
LRAJDOOT 11940 9160 1490 1000 11650RAJDOOT 1K1
YAMAHA RX-100 770 1530 1530BULLET - 350CC 3208 2800 820 3620BULLET 500CC 200 182 25 207SILVER PLUS 700 500 500EXPLORERTVS XLS 100 100 100TVS VMS 360 450 450Z- 80 9680 8281 1560 9841 8901SPIRIT 6350 6706 6706KB - 125KB - 4S/BOXER 200 200 200SUNNY ZIPHERO PUCH 9000 8290 500 8790HERO SCOOTER 4217 3825 3825HERO GIZMO 1550 1887 1887KEL PRIDE 160 160KET SX 4170 3142 3142LML TRENDYYEZDIVIJAY SUPERDD CHETAK 140HONDAGIZMO - 4S
SAMPLE TOTAL 52125 45803 1490 4765 52058MKTG/RNS
REVISED BUSINESS PLAN
CUSTOMER PRODUCT BUDGET QTY.
2000-01
BUDGET QTY.
2001-02
BUDGET QTY.
2002-03
EYML (FBD).
Rajdoot 175 (OE)
Rajdoot 175c (SPD)
70000
18000
63000
18000
56000
18000
EYML (S) Yamaha Rx-100 15000 18000 18000
BAL (A'BAD) Bajaj Spirit
Bajaj - 4s
58000
0
64000
0
70000
0
BAL (PUNE) Bajaj Z-80 (OE)
Bajaj Bravo
84000
0
60000
20000
54000
24000
EML (C) Bullet - 350cc- 4s
Bullet - 500cc - 4s
Explorer/S.Plus
18000
1000
0
19000
1000
0
20000
1000
0
MB & S (G) Hero Puch 63cc
Hero Scooter
66000
18000
54000
12000
50000
12000
MAL (L) Hero Gizmo/Pacer
24000 21000 19000
KEL (PUNE) Kinetic SX
Kinetic Pride
57000
0
55000
0
50000
0
KHML (PUNE)
Kinetic Honda 36000 43000 50000
LML (KANPUR)
LML Trendy
LML Scooter X-Press
12000
0
30000
6000
11000
12000
KB & S Kirloskar B&S 206cc
0 21000 50000
W/SHOP (F) Rajdoot 175cc
Bullet 350cc
Z-80 (O)
Vijay Super
Yezdi
Hero Puch
100ccHero Honda
TVS Champs
Bajaj Chetak
BajajKB-100/125
Explorer/S. Plus
Yamaha RX-100
16000
11000
26000
500
500
5000
0
0
30000
0
4000
0
15000
10000
25000
500
500
5000
10000
4000
40000
0
4000
0
16000
11000
26000
500
500
5000
15000
8000
50000
0
4000
0
Total 570000 659000 700000
PRICES OF THE VAROIUS MODEL CARBURETTORS
SIL PLS WEF 16.11.96 5.8.98
EXPLR. (THRU WFS)
RS 320.00 335.00
SIL PLS WEF 4.3.1986 1.9.87 22.10.87 22.12.87 1.8.88 19.10.88 20.1.89 1.07.90 01.10.90 23.3.93 19.8.93 1.10.94
EXPLR RS 120.00 124.00 135.00 130.00 140.00 157.60 167.60 172.00 179.60 211.30 205.00 216.00
WFS 1.1.1995 1.9.95
RS 225.90 250.00
PRIDE WEF 1.7.1990 1.10.90 112.91 1.9.94 1.6.95 1.1.96 28.5.96 8.12.97 1.2.98
RS 175.10 182.00 195.00 207.00 214.50 227.00 232.00 240.00 245.00
KEL-SX WEF 30.11.98 10.9.99
RS 442.00 305.00
LMS WEF 15.7.98 18.2.98
RS. 264.00 257.00
TVS WEF 27.16.91 01.9.91 01.8.94 01.4.95 01.4.96
RS. 182.00 201.00 215.00 222.00 230.00
XMCL WEF 26.2.00
RS. 305.00
CYGNET/SPIRIT
WEF
RS
30.7.1997
234.00
01.8.97
246.00
1.17.99
241.00
1.10.99
244.57
1.1.2000
244.57
KB-100 WEF
RS
30.1.1995
385.00
01.1.96
425.00
HERO PUCH
WEF
RS
01.6.1988
124.95
01.1.89
156.00
01.8.89
165.00
01.7.90
170.00
01.10.90
177.00
1.10.91
190.00
1.10.92
198.50
1.9.93
190.50
1.6.94
192.45
1.9.94
205.00
1.12.94
208.00
1.4.96
222.00
HERO(S) WEF
RS
18.5.1995
455.00
1.4.99
375.00
HERO GIZMO
WEF
RS
1.7.1990
105.00
28.4.91
177.00
09.6.93
198.50
23.7.94
196.00
10.9.94
205.00
1.12.94
208.00
1.1.96
226.00
09.1.95
231.00
21.11.96
232.00
27.8.97
247.00
1.1.98
250.00
BULLET 350CC
WEF
RS
20.3.1985
231.00
09.09.87
250.00
31.10.87
240.00
02.4.88
244.00
26.10.88
258.00
1.6.89
273.00
17.9.92
310.00
1.10.92
330.00
17.4.94
317.00
1.10.94
334.00
1.1.95
348.00
1.9.95
383.00
WEF
RS
01.4.1996
393.00
01.6.96
401.00
01.10.97
423.00
1.5.99
430.00
BULLET 500CC
WEF
RS
28.8.1987
301.50
01.08.88
313.30
01.10.92
350.00
17.4.94
339.00
1.10.94
357.00
1.1.95
369.00
1.9.95
410.00
01.4.96
413.00
01.6.96
421.40
1.10.97
456.40
MARKETINGMARKETING
The product manufactured by ESCORT Auto Components
Ltd. is Carburettors, Oil Pumps, Clutches, which is an
Industrial product.
Industrial marketing is very much different from other
consumer products marketing. In Industrial Marketing the
product is consumed by another manufactures so the target is
the other Automobile manufacturer.
Definition- When the marketing efforts are towards an industry
or a whole, rather than individual consumer like you and me is
Industrial Marketing.
For marketing of carburettors EACL practices two types of
marketing concepts: -
1. Original Equipment (OE) Marketing
2. Replacement Marketing
Concept of Original Equipment (OE) marketing (and how it
is done)
Original Equipment marketing is done in a very different
fashion as compared to other marketing practices.
The OE marketing followed by EACL is done in a certain
fashion. A high level team, which consists of Plant head,
Manufacturing department head (automobile engineer)
Marketing head and the Planning head is made.
This high level team firstly does its home work and sets
accordingly its target to approach on the basis of market
Intelligence system. This high level team approaches various
prestigious two wheeler manufactured like Hero Honda Bajaj
etc. The team negotiates with the other company high level
officials about the product they want to manufacture referring to
particular model. There is now, negotiation goes on various
topics like the design, quality, material, accessories, spare parts.
Etc.
After all the above points are finalised, outline of that project is
prepared, this goes to the costing department of the two
companies. They evaluate the cost of the product, quantity they
want. On the basis of this the price is negotiated between the
two and is final format is prepared.
Now the planning is final and a deal between the two is fianlised
mentioning the above key issues. The automobile manufacturer
releases the design of the Carburettor to the company. These
designs are analysed in EACL by highly qualified engineers.
The changes in the design are done if required. EACL then
manufactures a sample Carburettor according to the design
given this sample is dispatch to the automobile company for
test. The performance of the Carburettor is tested and is passed
by the company.
The performance and problem of the product is timely check by
the service department.
Concept of Replacement Market:
It is practically seen that Carburettor of vehicle has certain life
expectancy. Constant wear and tear of Carburettor occurs with
usage of vehicle. Therefore in order the maintain optimum level
of fuel mileage and efficient running conditions of the vehicle,
it become essential to replace worn out Carburettor. For
purchasing new Carburettor the owner of the vehicle go to
authorised workshop of the dealer of vehicle where he by
genuine Carburettor or go to local workshop to get sub
standard/duplicate carburettor. So replacement market is a
market which consists of genuine Carburettor and
substandard/duplicate Carburettor produced by local
manufacturer.
MARKETING STRATEGYMARKETING STRATEGY
PRODUCT
Under Replacement Marketing
Company manufacture carburettors of those vehicles, which has
high sales and also has a high population in the market. Higher
the sales/population more the number of users, more the number
of Carburettors, demanded by the user because of wear and tear
of the product.
At the same time company also wants to manufacturer
Carburettor of those vehicle models in which the competitors
are lesser. (For e.g. company manufactures Carburettors for
Enfield motors in which only two competitors are there).
Under OE Marketing
Products are manufactured according to the automobile
manufacturers. They give the design to the carburettor
manufacturer and accordingly product is manufactured.
PRODUCT LINE
Pressures Die Castines:
EACL is geared to deliver a wide rang of Die cast components
to zero draft angle, with the Back up of a precision tool room.
EACL manufactures a side range of components for the Rajdoot
175 cc, Yamaha RX-100 and Yamaha 350 cc vehicles to
catering to it own needs.
Clutch Assemblies:
Made with technical assistance from M/S Fuji of Japan, their
high-powered clutch assemblies are fitted in Rajdoot 175 cc and
Yamaha 350 cc and Yamaha 350-cc range of motorcycles. Major
components for the Yamaha RX-100 are also manufactured at
EACL.
Spokes and Nipples:
With technical know-how from M/S Hoshi of Japan, EACL is
one of the leading manufactures of swaged spokes and nipples.
The Rajdoot 175 cc, Yamaha 350 cc, and the Yamaha RX-100cc
are equipped with spokes and nipples frame EEAL.
Mangnetos:
The latest addition to the EEAL range of products is the high
powered flywheel Magneto, to be Manufactured under technical
collaboration with leading Japanese collaborators.
Carburettors:
'MIKCARB' fine Carburettors are manufactured with technical-
how from M/S Mikuni of Japan. Designed for law commission,
these carburetor ensure high efficiency and better fuel Economy
in addition to festurs such as law attrition, longer life and better
pick up. The present range includes carburetors for the Rajdoot
175 cc, Bullet 350 cc, Yezdi 250-cc Vijay Super Bajaj Z-80,
Kinetic Spark, Hero Puch, Silver plus, Explorer, Yamaha RX-
100 cc.
Product Profile:
There is no such thing as "suction" in engines. Don't suck air
and fuel into the cylinders, infect, Air and fuel flaw into an
engine because the pressure in the cylinders is lower than
atmospheric Pressure. As a result, atmospheric pressure forces
the air/fuel mixture into the engine like a giant Hand pushing on
the corroborator. Our study is concerned here with pressure
differential. It's a Simple case of finding the path of latest
resistance. The carburetor intake stroke (caused by downward
Motion of piston) creates the flow. .
Function Of Carburettor:
Carburettor performance the following three function:
a) The function of Carburettor is to produce combustible air
fuel mixture by breaking fuel into tiny Particles in the form
of vapour a process known as atomisation.
b) It mixture by the fuel with air in a proper ratio and to deliver
into the engine.
c) To control the engine output by regulating the amount. An
ideal mixture burns without leaving any excess air or fuel and
is the key efficient engine performance. The ratio of fuel and
air is called the mixture ratio and is generally expressed by
the weight proportion. The erratically, the amount of air
required for complete combustion of 1 gram of fuel under
normal condition is 15 grams.
Mixture Ratio = 15 grams of air 1 grams of fuel
The ideal air-fuel ratio is 15:1 i.e. 15 grams of air for 1 grams of
fuel. The ratio however, varies from as 1:1 during cold starting
to 8:1 during idling and 14-16: I during cruising. For any
Vehicle where fuel consumption as lowest, which is normally
40-50 kms Per hour.
PRICE
Under Replacement Marketing
The price of the products is defined on the basis of competitors.
Under this concept the price for competitors is offering is
considered. The company always keeps the price slightly lower
than, what competitors are offering. A pre study is done in
which all the costing part of the product is done. Price is also
text on the basis of BEP (Brake Even Point) analysis, company
always wants to keep higher profit margin, but also considers
the profit margin with which they can compansate with . Price
with also fixed up on the basis of decision of volume sales.
Under OE Marketing
Price factor is negotiated between the two companies. There is
no pre define format for asserting the price. The cost /accounts
departments of the both the companies negotiate on the price
factors. The collective bargaining between the two takes place.
They also consider the volume of quantity the company wants.
PRICE MOVEMENT - MIKCARB CARBURETTORS
RAJDOOT
WEFRS
01.4.1986202.00
01.4.87202.99
1.10.87209.99
1.1.88215.99
1.5.88227.54
1.8.88234.97
01.6.89242.63
9.4.90246.48
01.7.90251.33
1.10.90256.63
1.1.91265.10
16.9.91280.30
WEFRS
1.6.92292.00
1.11.92296.20
1.4.94286.20
3.10.94297.95
1.1.95319.00
2.4.96329.00
1.7.96334.00
1.2.2000350.00
RAJ(SP.D)
WEFRS
31.3.98431.00
1.2.2000438.00
RX-100 WEFRS`
24.9.91336.00
1.4.93667.00
1.6.95660.00
5.4.96670.00
1.7.96680.00
RX-100 (SP.D)
WEFRS
1.4.98782.00
M-80 WEFRS
22.1.98128.00
1.7.88135.00
1.8.88140.00
1.10.88160.00
1.4.89165.00
1.4.90170.00
1.7.90182.00
2.11.91195.00
1.9.94207.00
1.4.952.13.00
1.5.96225.00
1.8.97240.00
WEFRS
1.7.99225.00
1.10.99226.16
1.1.2000228.48
M-80 (SP.D)
WEFRS
24.11.97256.80
KB-4S WEFRS
30.1.95425.00
26.5.96470.00
S.ZIP WEFRS
22.4.96234.00
1.8.97246.00
Explorer WEFRS
11.2.96207.00
1.8.97240.00
Price ListMIKCARB CARBURETTOR
WITH EFFECT FROM 15.04.99S.No. Model Transfer
PriceDealers Nett Ass.
ValueBED 16%
1 Rajdoot 421.00 575.00 495.69 79.312 Bullet 421.00 580.00 500.00 80.003 Yezdi 390.00 570.00 491.38 78.624 Vijai
Super390.00 570.00 491.38 78.62
5 Silver Plus
260.00 365.00 314.66 50.34
6 Explorer 260.00 365.00 314.66 50.347 Baja M-
80260.00 338.00 291.38 46.62
8 Hero Puch
260.00 331.00 285.34 45.66
9 TVS Astra
260.00 345.00 297.41 47.59
10 Scooty 260.00 345.00 297.41 47.5911 RX - 100 755.00 1050.00 905.17 144.8312 KB - 100 523.00 690.00 594.83 95.1713 Bullet -
500515.00 690.00 594.83 95.17
14 Sunny Zip
260.00 345.00 297.41 47.59
15 H. Scooter
415.00 570.00 491.38 78.62
16 K. Pride 260.00 345.00 297.41 47.5917 H. Gizmo 260.00 345.00 297.41 47.5918 KB-125 523.00 690.00 594.83 95.1719 KB-4S 563.00 810.00 698.28 111.7220 Bajaj
Chetak210.00 275.00 237.07 37.93
We will give a discount of 5% on Dealers Network of Rs. 275.00
MARKET SEGMENTATION ANDMARKET SEGMENTATION AND DISTRIBUTIONDISTRIBUTION
CHANNEL
EEAL'S marketing division concentrates on following activities:
1. Supply to original equipment manufacturer (OEM)
2. Supply to replacement market.
a) Supply to welfare shop (major dealer).
b) Supply to spare part division.
SUPPLY TO ORIGINAL EQUIPMENT MANUFACTURER
(OEM's)
The automobile industry depend to large extend on the ancillary
industries for the supply of numerous parts and components
needed for assembly of vehicle, therefore EEAL'S major
emphasis is laid on one of its product line consisting of
carburettors manufacturing. The company makes Carburettor for
its own group and other Bi-Wheelers manufacturers as per their
specifications and design requirement. For example Carburettor
is manufactured for Bajaj Auto Ltd. Enfield India Ltd. Majestic
Auto Ltd., EYML, etc.
SUPPLY TO REPLACEMENT MARKET
EEAL also supply Carburetor and no of components and spare
parts for the replacement of worn out Carburetors or parts to
keep vehicle roadworthy.
DISTRIBUTION CHANNEL :
For the distribution and selling of Carburettor and its spare
parts. There is a wide networking of dealers spreaded all over
the country. There are 65 dealers in all over the country.
PROMOTION
Under OE Marketing
Company takes up promotion into ways.
1. Company to company promotion
2. National and International exhibition
Company to company promotion: In the first method
companies higher officials market the product. The higher
officials (including plant head, marketing head and
manufacturing head) approaches the various companies and
demonstrate them their products and what all they can
manufacture according to their requirements. At the same time
these officials convenience them about the quality and price of
the products and assure them for quality of service.
A special Service Cell is there in the company to look after the
product, which is been used, in the automobile company. They
duly check the performance of the product and check if any
problem arises.
National and International exhibitions: company promote
their products in the exhibitions held in India and abroad.
Recently company had participated in and exhibition held in
China named GUANGHZO which was on auto component
products this was held in November last year. Participation in
this exhibition was done to cater international customers.
Company has also recently received an order from a Japanese
automobile company.
Under Replacement Marketing
The product is promoted by the joint effort put in by the
company and their dealers.
By the company
Company has presently taken up a promotion camp in Patiala
(Punjab,India). Where they launched the Bajaj Scooter
carburettor. Patiala was chosen as the region of launch because
of the simple fact that there is the largest population of Bajaj
Scooter. So larger the number of Bajaj Scooter large the number
of repair/ maintenance required. In this camp company
organised the workshop camp for mechanic were the entire
major mechanic invited and the product was demonstrated to
them. A trial test was also given on Bajaj Scooter to show them
the actual performance of the product.
Free sample was given to all the mechanics to get satisfaction in
terms of quality of the product.
As major dealer of the company Welfare Shop in Faridabad is
taking up various promotional camps to promote the product.
Company gives extra benefit to the dealer to markets this
product like. Company was offering dealers a Target based
commission on every sale of 30 Carburettors Company was
giving 2 Carburettor free.
All the years company introduces one are the other promotional
schemes for dealers like discounts pricing These are given on
the basis market conditions (sales).
MARKET SURVEYMARKET SURVEY
Market survey is very important to decide method to estimate
the demand of 'MIKCARB' Carburettor in the replacement
market. Market survey is very necessary to have practical
approach to get more practical results. For my project I did
market survey with specific questionnaire and personal meetings
with mechanics and supervisors and workshops of authorised
dealer of Bi-wheller manufacturing company to who
'MIKCARB' is supplied.
For market I took size 0.5
FINDINGS
Findings of markets survey are as follows:
1. The main problems, that are concerned with MIKCARB
Carburettor are overflow, access of air which result is low
average over-race and starting problems. It is seen that
overflow problems is very frequent.
2. Since Carburettor performance is very good and age is very
high so rate of replacement per year is very low.
3. Average rate of MIKCARB Carburettor is 10 years.
4. 50% of vehicle Z-80 and Hero Puch are fitted with
MIKCARB and 50% of fitted with SPACCO. It is generally
observed that MIKCARB is slightly better than SPACCO.
5. It is also important to note that awareness about Carburettor
and its function is very low about 5%.
6. Due to lack of awareness most of the customer 40-50 go to
the local workshop where they get duplicate/substandard.
Carburettor generally at the time of replacement around 25-
30% go to authorized dealer where they get genuine
Carburettor and also good number of people run their vehicle
with worn about Carburettor as long as they can.
METHODOLOGY OF DEMANDSMETHODOLOGY OF DEMANDS
ESTIMATIONESTIMATION
On the basic of market survey and data of Bi-wheeler sales from
ACMA report (Automobile components manufacturer
association of India) the methodology for demand.
Estimation of MIKCARB Carburettor in replacement market is
explained further. First there are some assumptions which I have
considered.
ASSUMPTIONS:
1. I have considers the age of Carburettor 10 years and after 10
year it is replaced.
2. I have assumed that only 25% owner of the vehicle go to the
authorised dealer where they get original MIKCARB
carburettor at the time of replacement.
3. I have assumed that age of a vehicle is not more than 20 year
so replacement of a carburettor is done at one time only.
ESTIMATION OF DEMAND
To estimate the demand of the "MIKCARB" for the further i.e.
for 2001, 2002, 2003,2004, we will consider the sales data for
the year 1991, 19921993,1994 respectively of the bi-wheeler in
which MIKCARB is used originally because carburettor of these
vehicles will be replaced after 10 years.
Before going any further we will keep in mind following points:
1. 50% vehicle of the Hero Puch and Bajaj Z-80 are fitted with
MIKCARB carburettor and 50% are fitted with SPACCO
carburettor.
2. There are 18 bi-wheelers in which MIKCARB carburettor is
used but we will consider only those whose sales were
considerably good in 1991, 1992, 1993, 1994, and mostly
which are still popular in the market.
Therefore estimation of demand of MIKCARB carburettor we
will consider following models:
a) Rajdoot 175 CC
b) Yamaha RX 100 CC
c) Bajaj KB 100 CC
d) Enfield Bullet 350 CC
e) Explorer 50 CC
f) Bajaj M 80
HENCE THE FORMULA:
Estimation demand of MIKCARB carburettor for 2001 in
replacement market
= 25% OF SALE OF Rajdoot motorcycle 1991
+ 25% of sale of Yamaha RX 100 CC in 1991
+ 25% of sale of KB 100 CC in 1991
+ 25% of sale of Bullet 350 CC in 1991
+ 25% of sale of explorer in 1991
+ 50% of (25% of sale of Bajaj M80 in 1991)
+ 50%of (25% of sale of Hero Puch in 1991)
Similarly we can estimate demand for 2002, 2003, and 2004.
LIMITATIONS
- I could not get the exact Sales figure, projections and the data
depend upon the conditions prevailing today and last year. It
may change with the effect of various market forces, which are
not consistent.
-The report does not suffer with personnel biases. But despite of
high amount of procurement of data and information their can
be incorrect deduction and recommendations.
-A market research on a large scale has not been possible due to
limitations of resources and constraint of time. A true picture
could have emerged indicating future trends in this sector.
-The profile of Mr. Nikhil Nanda director of this company is not
mentioned.
-Industrial marketing is very different from other marketing
concepts. As far as possible is handled carefully, but some of
the other points may not be covered because there are 101
factors which effects industrial demands.
CONCLUSION & SUGGESTIONCONCLUSION & SUGGESTION
Escort Employees Ancillaries Ltd. (EEAL) was recently in
August last year was renamed as Escort Auto Component Ltd.
(EACL).
EACL is one of those companies, which are operating from lost
3decades. Earlier EACL was raised by Escort Ltd. (EL) for the
season that EL had its business in two-wheelers industry also.
To reduce the cost of the bikes and to cater larger market, this
major auto component “Carburettor” was manufactured
indigenously. Which is manufacture by Escort Auto Component.
Escort Auto Component Ltd. had a major Customer Yamaha
Motors Escort Ltd. (which now totally taken/over by Yamaha).
Today EACL had lost its customer, and with the due fact the
company is facing losses.
Today Company has realized the competition in the market.
They had to market their products to other Auto Manufacturer
other their Escorts Yamaha. apart from being a big supplier to
two –Wheeler Company has ventured into Direct Marketing for
Replacement Market (Replacement Marketing). With this
concept of marketing EACL has made on attempt to cell
carburetors for those vehicle, which have higher population.
Higher the number of population of vehicles higher the much be
will be for were and tear so needed for Carburetor replacement”.
Company’s higher official say/s
EACL has also recorded a highest sales figure since its stepping
into this field, for 80488 (2000-2001) Carburetors against 65959
and 5671.6 for 99-2000 and 98-99 respectively. In replacement
Market Company has a cutthroat competition with other brands
like Spacco and Ukal.
In other words company is showing a good performance in the
field of Replacement Marketing.
EACL, which is manufacturing industrial product Carburettors,
which is for two-wheeler industry. Company had a ever growing
sales figure for 2000-01 478234 carburettors were sold and for
1999-2000 444369 carburetors was sold.
Which shows that they have been aggressively taking up this
field. EACL has always believed in customer satisfaction.
Company has garbed strong customers like Hero Honda,
Enfield, TVS Suzuki and Bajaj in OE Marketing. EACL
manufacturer product up to their satisfaction levels with most
advanced quality to give best performance. Bajaj Auto, which is
one of the most, satisfied one the oldest customer of EACL.
The performance of a two –wheeler depends on its carburetor,
Bajaj Scooters is the leader in market we can say that, indirectly
the carburetor manufactured by EACL which is fitted in Bajaj
Scooters is also showing good performance.
1.1. BIBLIOGRAPHYBIBLIOGRAPHY
Magazines
Business world
Fortune
Escort Company Journals
Newspapers
Economic Times
Libraries
CII
Websites
Www.Indiainfoline.com
Www.escortsgroup.com.