A STUDY ON COMPETITOR ANALYSIS ANALYSIS OF NEW TYRES AND RETRADING PATTERN IN GEM TYRE PRETREADS (MRF EXCLUSIVE DEALERS) VELLORE
1.1 INTRODUCTION The process of identifying key competitors assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid. Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. Competitor analysis is an essential component of corporate strategy. It is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called “informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager manager continually receives.” As a result, traditional environmental scanning places many firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis. The strength of the competition is key to finding your competitive advantage. Defining your key industrial industrial competitive pressures provides a framework for developing strategies strategies to your growth. Analyzing the primary competitor and identifying their Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis) help determine target markets, marketing plan, customer service, sales Fore casting and sales planning.
Various Tools and Techniques of Competitor Analysis:
The various techniques used for competitor anal ysis are:
1) Competitive Intelligence System:
This is an important tool for competitive analysis. It includes identifying competitive information and setting up the data, collecting, evaluating and analyzing the data,
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disseminating information and responding, selecting competitors using customer value analysis etc.
2) Porter’s Five Forces Framework :
The five forces come from Michael porter‟s famous framework and are
Power of buyers
Power of suppliers
Threat of substitutes
Barriers to entry
Competitors
3) Competitor Profiling :
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a legitimate source of competitive advantage. The raw material of competitive advantage consists of offering superior customer value in the firm‟s chosen market. Profiling facilitates this strategic objective in three important ways. First, profiling can reveal strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of competitor profiling will allow the firm to anticipate strategic response of their rivals to the firm‟s planned strategies, the strategies of other competing firms, and changes in the environment. Third, this proactive knowledge will give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms from exploiting the firm‟s own weaknesses.
4) Subjective Assessment using questionnaire:
Subjective assessment tells the evaluator how the users feel about the product or the company. The usual method of assessment is to used a standardised opinion questionnaire to avoid criticisms of subjectivity 2
disseminating information and responding, selecting competitors using customer value analysis etc.
2) Porter’s Five Forces Framework :
The five forces come from Michael porter‟s famous framework and are
Power of buyers
Power of suppliers
Threat of substitutes
Barriers to entry
Competitors
3) Competitor Profiling :
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a legitimate source of competitive advantage. The raw material of competitive advantage consists of offering superior customer value in the firm‟s chosen market. Profiling facilitates this strategic objective in three important ways. First, profiling can reveal strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of competitor profiling will allow the firm to anticipate strategic response of their rivals to the firm‟s planned strategies, the strategies of other competing firms, and changes in the environment. Third, this proactive knowledge will give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms from exploiting the firm‟s own weaknesses.
4) Subjective Assessment using questionnaire:
Subjective assessment tells the evaluator how the users feel about the product or the company. The usual method of assessment is to used a standardised opinion questionnaire to avoid criticisms of subjectivity 2
5)Usability test:
The performance, accuracy, recall and emotional responses of the products of the competitors are compared with companies own product.
6)SWOT analysis :
It is used to find out the strength, weakness, opportunities and threats of a company with respect to the competitor. It takes care of the internal factors such as strength and weakness of the companies compared to its competitors and external factors such as opportunities and threats that gives an edge over the competitor.
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1.2 COMPANY PROFILE About Company Name: Madras Rubber Factory (MRF) Founded: 1949 (Chennai) Headquarters: Chennai, India Industry: Manufacturing Products: Car tyres, tyres, Motorcycle Motorcycle tyres MRF is India's largest tyre manufacturing company, and amon g the dozen largest worldwide. It exports to more than 65 countries. MRF received the highest rankings in the stud y in four of the five Factors Determining Overall satisfaction with tyres 1) Appearance 2) Durability 3) Traction 4) Handling History
MRF Ltd. India s largest manufacturer of automotive tyres and tubes, as incorporated as ‟
private limited company in1960 to take over the business of a partnership firm called the Madras Rubber Factory, started by late Sri. K. M Mammen Mapillai. The company was 4
converted into public limited company in April 1961 . MRF entered tyre manufacturingin 1962 through a technical collaboration with Mansfield, USA. Over the years, the company has established its own R&D center and currently functions independently. Present
It is also involved in a range of other activities via subsidiaries. Funskool India, a Joint venture between Hasbro and MRF, is a major toy manufacturing company in the country. MF Pretreads offers world class precured tyre retreading service, and MRF Muscleflex is involved in making conveyor belts. It is presently under the leadership of Vinoo Mammen, son of the late K.M. Mammen Mappillai. Other Activities
MRF has been involved in the development of cricket through its sponsorship of many cricketers and MRF Pace Foundation. At one point of time, MRF was the bat sponsor of world-class batsmen including Brian Lara, Sachin tendulkar and Australian captain Steve Waugh.Sachin now uses Adidas bats, and MRF are currently sponsoring Gautam Gambhir and Rohit sharma two other members of the Indian cricket team.
SWOT ANALYSIS Strengths:
Improved capacity utilization and overall cost efficiency
Reliability and Durability (Mileage)
Product innovation
Customer focus
Strong distribution network
High importance to R&D and conservation of energy
Weakness:
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Mrf tyres still not achieving the level of business in radial t yres when comparing to jk tyres.
Opportunities:
Existing & potential growth of automobile industry
Government‟s focus on development of infrastructure
Potential change in the tyre patterns of commercial vehicles from bias to radial patterns
Reduction in interest of loans
Volatility of prices of rubber & crude oil
Steep inflow of inferior Chinese tyres
Low liquidity and high interest costs
Threats:
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1.3 OBJECTIVES OF THE STUDY PRIMARYOBJECTIVE
To understand the behavioral pattern in buyer perception about the MRF Tyres.
SECONDARY OBJECTIVE
1. To identify the SWOT analysis of competitors. 2. To analyze ease of entry for new competitors. 3. To know the different strategies used by the various competitors. 4. To find the factors affecting the product and the company. 5. To analyse the technologies involved in analyzing business and competitive data and information regarding environmental, company and competitor analysis.
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1.4 SCOPE OF THE STUDY
1. Knowing these strengths and weakness enables a company to effectively build its brand and establish its product. We need to make a conscious effort to ask the key question: how do we stack up against our competitor? The answer to this will be constantly changing, so the question should be repeated and discussed often.
2. To generate understanding of competitors‟ past, present (and most importantly) future strategies.
3. For evaluating how we measure up the competition, we use certain tools and which is used to define the different criteria of competitor analysis
techniques
like price, products,
policy, customer service, automation etc.
4. To help management understand their competitive Advantages / disadvantages relative to competitors.
(“Know your enemy, and in 100 battles you will never be defeated.” -Sun Tsu, from Art of War)
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1.5 LIMITATION OF THE STUDY
1. Time constraint is one of the main limitation 2. Lack of appropriate information from respondents 3. The study has conducted only in the area of in and around Vellore which extents to limited samples of 100. So the result cannot expect to be 100% accurate.
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1.6 REVIEW OF LITERATURE The impact of a firm‟s strategic marketing mix choices on profitability can be evaluated by understanding the impact of those choices on consumer demand for the firm‟s products and on the firm‟s Costs . Additionally, a firm‟s strategic marketing mix choices, and its demand and costs can be affected by rival firms‟ strategic choices. Therefore, to understand the effects of choice of marketing mix on profitability , we have to understand its effects on demand, cost and competitor reactions. The effects of choices of marketing mix on consumer demand have been analyzed in great depth in marketing, but research on the strategic reactions of competitors to such choices have been far more limited. like advertising, cost components including R&D etc., and profits of firms.
Competitive analysis of promotions like features, marketing literature.This could be because it is not displays, etc., has not yet received attention in the easy to formulate the variable cost structures of these marketing mix variables. Additionally, the techniques of estimating discrete choice models described above in Section 4.3 could be used to study feature and display competition, but to combine them with continuous choice of pricing is a challenging task. Future applications of these techniques especially to retailer competition can be very instructive.
METHODS AND TECHNIQUES FOR ANALYZING BUSINESS COMPETITION
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals offers a legitimate source of competitive advantage. The raw material of competitive advantage consists of offering superior customer value in the firm‟s chosen market. The definitive characteristic of customer value is the adjective, superior. Customer value is defined relative to rival offerings making competitor knowledge an intrinsic component of corporate strategy. Profiling facilitates this strategic objective in three important ways. First, profiling can reveal strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of competitor profiling will allow the firm to anticipate the strategic response of their rivals to the
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firm‟s planned strategies, the strategies of other competing firms, and changes in the environment. Third, this proactive knowledge will give the firms strategic agility. Offensive strategy can be implemented more quickly in order to exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be employed more deftly in order to counter the threat of rival firms from exploiting the firm‟s own weaknesses.
Clearly, those firms practicing systematic and advanced competitor profiling have a significant advantage. As such, a comprehensive profiling capability is rapidly becoming a core competence required for successful competition. An appropriate analogy is to consider this advantage as akin to having a good idea of the next move that your opponent in a chess match will make. By staying one move ahead, checkmate is one step closer. Indeed, as in chess, a good offense is the best defense in the game of business as well. PRICING OF CONSPICUOUS GOODS: A COMPETITIVE ANALYSIS
Conspicuous goods differ from many frequently purchased goods i n an important way: They satisfy not just material needs, but also social needs such as prestige (e.g., Belk 1988, Grubb and Grathwohl 1967). This difference has important implications for how such goods are marketed. Marketing textbooks caution marketers of prestige goods that they should not price their product “too low,” since they could sell less at a lower price (e.g., Boone and Kurtz 1999, Berkowitz et al. 2000, Perreault and McCarthy 2000).
A common practice of marketers of conspicuous goods, such as cars, jewelry, perfumes, and watches, is to highlight the exclusivity of their products. For instance, in a study of 2000 randomly selected magazine ads, Pollay (1984) found that uniqueness appeals were used as a central theme in 10% of magazine ads and as a subordinate theme in 23% of ads. Other firms use exclusive distribution channels to restrict the availability of their products. Christian Dior, for example,sued supermarkets for carrying its products because wide availability could hurt the firm (Marketing Week, July 3, 1997). We also see luxury good manufacturers being advised not to sell their products over the internet since it might d ilute their image (Marketing, August 24, 2000). Thus, marketers are motivated to m aintain a product‟s exclusivity in part because
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they believe that some consumers might find the product less valuable if it becomes widely available.
MARKET SEGMENTATION AND COMPETITIVE ANALYSIS FOR SUPER MARKET RETAILING
Retail market segmentation is necessary and often critical to the development of effective marketing strategies in today‟s competitive marketplace. The impetus for a market segmentation strategy is basic: customers exhibit heterogeneous needs and purchase patterns, and thus respond differently to different marketing stimuli. The benefits to be gained from a segmentation strategy are closely linked to the marketing concept. The process of identifying segments necessitates a thorough analysis of the entire market, not only focusing on the customer‟s needs and shopping habits but also providing knowledge of changing market conditions and competitive actions. This knowledge enables the retail organization to identify those segments that offer the most promising
opportunities in relation to the organization‟s
strengths and situational determinants.
The firm can then develop strategies and implement programmes tailored to the unique needs of the targeted segments and allocate its marketing resources in the most effective and efficient manner. Most researchers acknowledge these and other related benefits of applying a segmentation approach. However, considering its relative importance as a marketing activity (especially
with the advent of the marketing concept as a business philosophy) retail market
segmentation as a concept is a significantly under-researched topic in both the USA and Europe . This observation is even more applicable within the highly competitive retail food industry.
DESIGNING THE COMPETITIVE INTELLIGENCE SYSTEM
Four main steps: There are four main steps in designing a competitive intelligence system: setting up the system, collecting the data, evaluating and analyzing the data, and disseminating information and responding to queries.
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SETTING UP THE SYSTEM:
The first step calls for identifying vital types of competitive information, identifying the best sources of information, and assigning a person who will manage the system and services. In smaller companies that cannot afford to set up a formal competitive intelligence office, specific executives should to watch specific competitors.
COLLECTING THE DATA:
The data are collected on a continuous basis from the field (sales force, channels, suppliers, market research firms, trade associations) from people who do business with competitors, from observing competitors, and from published data. The internet is creating a new arsenal for those skilled at gathering intelligence.
EVALUATING AND ANALYZING DATA:
The data are checked for validity and reliability, interpreted, and organized. DISSEMINATING INFORMATION AND RESPONDING:
Key information is sent to relevant decision makers , and managers‟ inquiries are answered. With a well-designed system, company managers receive timely information about competitors via email, phone calls, bulletins, newspaper and reports.
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COMPETITOR ANALYSIS FRAMEWORK:
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COMPETITOR IDENTIFICATION AND COMPETITOR ANALYSIS
Competitor identification serves as an important function in several fields. In industrial organization economics, it is associated with the task of defining markets, which is critical for antitrust and regulatory policy. In marketing, it supports the analysis of pricing policies, product design, development and positioning, communications strategy,and channels of distribution. In strategic management,it provides a foundation for competitor analysis and the analysis of industry structure,conditions of rivalry, and competitive advantage. One important objective of competitor identification is to increase managerial awareness of competitive threats and opportunities. To maximize awareness, it is essential to survey the competitive landscape broadly in the initial stages of analysis. This can help managers avoid the dangers of a myopic approach to competitive strategy and will minimize the chance of being blindsided. It can reduce a firm‟s vulnerability to competitive blindspots (Zajac and Bazerman, 1991), which are particularly troublesome in settings in which industry boundaries are not well defined or are very fluid and changeable. For example, in emerging industries, in turbulent, high velocity environments (Eisenhardt and Bourgeois, 1989), or in hypercompetitive contexts (D‟Aveni, 1994), there may be a temptation for managers to pay attention only to competitors who display a product or technology overlap, because these competitors are salient and because the task of broad scanning is difficult. However, it is in these settings that competitive encroachments and incursions across boundaries by indirect and potential competitors may prove to be the greatest threat.
A variety of approaches have been developed to address the task of competitor identification that are congruent with market definition. Sophisticated quantitative approaches to defining markets include the analyses of cross-price elasticities, of residual demand curves, of price correlations, and of trade flows using methods such as the Elzinga – Hogarty approach (Elzinga and Hogarty, 1978).1Scheffman and Spiller (1987) provide an overview of classical quantitative approaches to market
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1.7. METHODOLOGY RESEARCH METHODOLOGY Type of study
: Descriptive study
Source of data
: Primary
Sampling size
: 100
Population of study
: Customers
Research tools
: Percentage analysis, Weighted average
Research approach
: Survey
Sampling procedure
: Convenient Sampling
Research instrument
: Questionnaire
Type of study:
The type of study is descriptive one. The major purpose of descriptive research is descriptive of state of affairs, as it exists at present. The characteristic of descriptive research is that the researcher has no construal over the variables. Researchers can only present what has happened or what is happening. Here the researcher is attempting to find out the engagement level in relation or attrition rate that has happened already in the organization and the reasons for that research type will be d escriptive only.
Source of data: There are two methods of collecting data. They are primary and secondary data. (1) Primary data: Those data which are collected for the first time and thus happen to be original in character.
(2) Secondary data: Those data which have already collected by someone else and which have already been passed through statistical process.
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The data used for this research is the primary data collected by administering a structured questionnaire to the associate customers.
Sampling size: 100 customers were approached for collecting d ata.
Sampling procedure: The sampling method adopted for the research was convenient sampling, which has been taken from the population for the study.
Research tool: Weighted average and percentage analysis have been used to verify the satisfaction level of the employee to the compan y.
Research approach: The survey method was adopted for this study. Interviews were conducted where conducted where we used predetermined set of questions, which they had to respond.
Research instrument The data was collected using a questionnaire that consider of rating scales.
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TOOLS AND TECHNIQUES USED FOR ANALYSIS
Data analysis :
In order to extract meaningful information from the data collected, the data analysis is carried out. The analysis is basically aimed at giving preference of association or different between the various tables present in the research.
Statistics:
The term „statistics‟ refers to a measured value based upon sample data. After collection of data, the questionnaires were scrutinized and facts coded and tabulated followed by analysis and interpretation using statistical techniques mentioned below. CORRELATION:
The correlation is one of the most common and most useful statistics. A correlation is a single number that describes the degree of relationship between two variables. Let's work through an example to show you how this statistic is computed. A measure of the strength of linear association between two v ariables. Correlation will always between -1.0 and +1.0. If the correlation is positive, we have a positive relationship. If it is negative, the relationship is negative. Formula: Correlation Co-efficient : Correlation(r) =[ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores
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WEIGHTED AVERAGE:
Weighted average is defined as Mean in which each item being averaged is multiplied by a number (weight) based on the item‟s relative importance. The result is summed and the total is divided by the sum of the weights. Weighted averages are also used extensively in descriptive statistical analysis such as index numbers. Also called as weighted mean. Weighted average = ∑wx÷ ∑w W= weights assigned, x= ranks
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Table – 2.1.1 TRANSPORT & VEHICLE CLASSIFICATION OF RESPONDENTS
No. of
S. No.
Options
1.
Auto
16
16
2.
Bus
26
26
3.
Car
16
16
4.
Van
19
19
5.
Truck
23
23
Total
100
100
Respondents
Percentage
Source: Primary data INTERPRETATION:
It is inferred that 12% of respondents using auto and 32% using bus and 12% using car, 18 of respondents using van and 26% using truck (lorry) for purchasing new tyres and retreading the tyres in gem tyres so far as well. Most of the respondents using bus (32%) and truck (26%).thus the transport and vehicle classification of respondents.
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CHART-2.2.1 TRANSPORT & VEHICLE CLASSIFICATION OF RESPONDENTS
Percentage Percentage
P E R C E N
12
32
12
18
26
Auto
Bus
Car
Van
Truck
T A G E
OPTIONS
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TABLE – 2.1.2 RESPONDENTS PLAN TO SHIFT ANOTHER RETREADING CENTRE CLASSIFICATION
Options
No. of respondents
Percentage
Yes
20
20
No
80
80
Total
100
100
Source: Primary data INTERPRETATION:
It is inferred that 20% of respondents saying yes for plan to shift another retreading centre, and 80% of respondents saying no for plan to shift another retreading centre. Most of the respondents willing to continue the retreading in gem tyres. CHART – 2.2.2 RESPONDENTS PLAN TO SHIFT ANOTHER RETREADING CENTRE CLASSIFICATION
Percentage P
Percentage
E R
80
C E N T A
20
G E Yes
No OPTIONS
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TABLE – 2.1.3 CLASSIFICATION OF RESPONDENTS SATISFACTION LEVEL WITH THE PRESENT RETREAD AND NEW TYRES
No. of. S. No.
Options
Percentage Respondents
1.
Highly satisfied
19
19
2.
Satisfied
18
18
3.
Neutral
22
22
4.
Dissatisfied
20
20
5.
Highly Dissatisfied
21
21
Total
100
100
Source: Primary data INTERPRETATION:
It is inferred that 18% of respondents highly satisfied and 16% are satisfied ,24% of respondents are neutral and 20% of respondents dissatisfied and 22% of respondents were highly satisfied with the present retread and new tyres. Most of the respondents are neutral with the satisfaction level of present retread and new tyres. Thus the classification of satisfied with the present retread and new tyres.
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respondents
CHART – 2.2.3
CLASSIFICATION OF RESPONDENTS SATISFACTION LEVEL WITH THE PRESENT RETREAD AND NEW TYRES
Percentage P
Percentage
E R
24
C E
18
20
22
16
N T A G E
Highly satisfied
Satisfied
Neutral OPTIONS
25
Dissatisfied
Highly Dissatisfied
TABLE – 2.2.4 CLASSIFICATION OF RESPONDENTS OPINION ON BEST NEW TYRE SELLER
S. No.
Options
No. of. Respondents
Percentage
1.
Apollo
19
19
2.
Ceat
16
16
3.
JK
18
18
4.
MRF
20
20
5.
Bridgestone
18
18
6.
Others
19
19
Total
100
100
Source: Primary data INTERPRETATION:
It is inferred that 18% of the respondents opinion on best in new tyre seller is Apollo tyres, and 12% of the respondents opinion is CEAT tyres. 16% of the respondents opinion is JK tyres, Most number of respondents having opinion on best new tyre seller is MRF TYRES. 16% of respondents opinion on Bridgestone and 18% of respondents opinion on other tyres (including michillien, birla, & good year tyres)
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CHART-2.2.4 CLASSIFICATION OF RESPONDENTS OPINION ON BEST NEW TYRE SELLER
Percentage P
Percentage
E R C
20
18
16
E
16
18
12
N T A G E Apollo
Ceat
JK
MRF BRANDS
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Bridgestone
Others
TABLE -2.1.5 RANK THE FACTORS RESPONDENTS RATE THE RETREADERS BASED ON BELOW MENTIONED FACTORS s g n i t a R
Factors
e r o c S
Quality/Mileage
Very Good 5
Good Satisfactory
Service
Credit
Discount
Total
Very Bad
4
3
2
Rank
1
Weighted Mean
14
23 70
Price
Bad
12
11 92
21 60
22
9
19 25
27 16
76
48
293
0
14
I 308
100 6
6 8
III
100
6
4
299
0
6
II
100
0
7
72
0
4
24
100
0
3
68
50
4
45 8
18
0
2
84
110
5
33 15
17
10
2
IV 269
100 6
V 263
Source: Primary Data INTERPRETATION:
It is inferred that service is ranked as first and second factor quality as rated by respondents, third factor price describes value of the retreaders and credit factor which is most important for regular customers, fifth factor discount is provided.
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CHART -2.2.5 FACTORS THE RETREADERS BASED ON BELOW MENTIONED
Chart Title
P E
Series1
R C
299
293
308 269
E N T A G E
OPTIONS
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263
Table-2.1.6 CLASSIFICATION OF TYRE COMPANIES PROVIDING BETTER AFTER SALES SERVICE
S. No.
Options
No. of. Respondents
Percentage
1.
Apollo
24
24
2.
Ceat
26
26
3.
JK
25
25
4.
MRF
25
25
5.
Bridgestone
-
-
6.
Others
-
-
Total
100
100
Source: Primary data INTERPRETATION:
It is inferred that 28% of respondents saying APPOLO tyres, 12 % of respondents saying CEAT tyres, and 30% of respondents saying JK tyres and another 30% of respondents prefers MRF for the tyre company providing better after sales service. No other respondents preferring bridgestone and other tyres. Thus the classification of tyre companies providing better after sales service.
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CHART – 2.2.6 CLASSIFICATION OF TYRE COMPANIES PROVIDING BETTER AFTER SALES SERVICE
PERCENTAGE PERCENTAGE 30
28
30
12 0
OPTIONS
31
0
TABLE – 2.1.7 CLASSIFICATION OF TYRE COMPANIES EFFECTIVE PROMOTIONAL SCHEME
S. No.
Options
No. of. Respondents
Percentage
1.
Apollo
18
18
2.
Ceat
19
19
3.
JK
20
20
4.
MRF
20
20
5.
Bridgestone
18
18
6.
Others
15
15
Total
100
100
Source: Primary data
INTERPRETATION:
It is inferred that 16% of respondents prefers APPOLO, and 18% of respondents prefers CEAT & 20% Prefers JK & MRF, 16% Prefers bridgestone, and atlast 10 % of respondents prefers other tyres (including BRIDGESTONE, MICHILLIEN, & GOOD YEAR) for tyre companies promotional scheme is more effective. Most of the respondents preferring JK and MRF promotional scheme is more effective. Thus the classification of tyre companies promotional scheme.
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CHART – 2.2.7 CLASSISICATION OF TYRE COMPANIES EFFECTIVE PROMOTIONAL SCHEME
Percentage Percentage 16 P
18
20
20 16
E
10
R C
Percentage
E N T A G
OPTIONS
E
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TABLE – 2.1.8 RESPONDENTS OPINION ABOUT COMPETITIVE FACTORS
S. No.
Options
No. of. Respondents
Percentage
1.
Quality
21
21
2.
Price
19
19
3.
Service
18
18
4.
Discount
22
22
5.
Credit
20
20
Total
100
100
Interpretation:
It is inferred that 22% of people are saying there opinion on quality and 18% of people saying on price and 16% of people saying on service and 24% of people saying on discount and 20% of them saying credit so far as well.. Thus the classification of respondent opinion on best new tyre seller.
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CHART – 2.2.8 RESPONDENTS OPINION ABOUT COMPETITIVE FACTORS
Percentage Percentage
P E
24
22 18
R
20 16
C E N T A G E
Quality
Price
Service OPTIONS
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Discount
Credit
2.3.1 CORRELATION BETWEEN MODE OF TRANSPORT AND LEVEL OF SATISFACTION Mode of Transport(x) Level of Satisfaction(y)
X 16 26 16 19 23 ∑X=100
16
26
16
19
23
19
18
22
20
21
Y 19 18 22 20 21 ∑Y=100
XY 304 468 352 380 483 ∑XY=1987
(X)2 256 676 256 361 529 ∑X2=2078
(Y)2 361 324 484 400 441 ∑Y2=2010
r(x,y)= [ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])]
= (5*1987-100*100)/ Sqrt(5*2078-(100)2 5*2010-(100)2 = -0.46
Interpretation:
There is a negative relationship between mode of Transport and Level of satisfaction.
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3.1 FINDINGS
Most of the respondents using bus and truck
80% of respondents saying no for plan to shift another retreading centre
Most of the respondents are neutral with the satisfaction level of present retread and new tyres
20% of respondents having opinion on best new tyre seller are MRF TYRES.
30% of respondents prefer MRF for the tyre company p roviding better after sales service.
20% Prefers JK & MRF for effective promotional scheme.
Respondents rate the factors for retreading tyres: 1. Service 2. Quality 3. Price 4. Credit 5. Discount
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3.2 SUGGESTIONS
Delivery time should be reduced to customers.
Promotional schemes to be launched to attract new customers.
Better after sales service be provided by compan y.
Provide credit to the transport owners
To provide cash discount in order to competite its competitors
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3.3 CONCLUSION
MRF TYRES is one of the best Tyre manufacturing companies in India. It requires improvement for relationship with its potential customer. So it can further increase its market share through customer relationship program and brand awareness strategy. Competitive analysis should be done on both aspects such as internal and external environment. It helps to know position of a company and strategies adopted by competitors.
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APPENDIX QUESTIONNAIRE A STUDY ON COMPETITOR ANALYSIS OF NEW TYRES AND RETRADING PATTERN IN GEM TYRE PRETREADS (MRF EXCLUSIVE DEALERS) VELLORE
1. TRANSPORT /CUSTOMER NAME
:
2. PLACE
:
3. VEHICLE MODEL
:
4. AUTO BUS
CAR
VAN
TRUCK
5. COMMERCIAL
PRIVATE 6. Where do you Retread?
:
7. If u Retread in Gem Tyres , how was the quality of the tyre? :
8. Do you Plan Shift to another re trading centre ? 1. YES
2. NO
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9. If yes please specify the re traders And reason? 10. Why you don‟t re trade in Gem tyres
:
1. Quality is not good 2. Price is high 3. Low Discount 4. Owner‟s Choice 5. Maximum Problems 6. We don‟t know about 7. Late Delivery
11. If u Retread In Gem tyres what do u expect from them?
:
12. Are you satisfied with the Present Retread? 1. Highly satisfied 2. Satisfied 3. Neither Satisfied Nor Dissatisfied 4. Dissatisfied 5. Highly Dissatisfied 13. Give your opinion on which re treader is the „BEST‟? (Even if you do not retread tyres with them) 1. Apollo (only rubbers) 2. MRF 3. JK TYRES
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4. Others
14. From the above choice how do you rate the re treader based on below mentioned factors? Attributes
Excellent
Good
Neutral
Bad
Very bad
Quality/Mileage Price Service Low Complaints Credit Discount Life of the tyre
15. What‟s the difference Between Gem/ Mrf and other tyres?
16. Which company is providing better after sales service? 1. MRF
2. Apollo
3. CEAT
4. JK
5. Bridgestone
17. Which companies sell out scheme is more effective? 1. MRF 2. CEAT 3. APPOLO 4. JK TYRES 5. BRIDGESTONE 6. Michelline
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6.Miichelline 7.Others
