SUMMER INTERNSHIP PROGRAM

REPORT ON
A Study on Efficiency of Distribution Channel and
expanding the reach of CEAT Tyres.

PREPARED BY
ABHIJEET NIGAM
PGDM MARKETING
INDIRA INSTITUTE OF MANAGEMENT,PUNE (MH)
(25TH MAY 2016 -25TH JULY 2016)

GUIDED BY
MR. MOHD. ANAS SIDDQUI
REGIONAL MANAGER
LUCKNOW
CEAT LTD.
 CERTIFICATE

This is to certify that internship report entitled “A STUDY ON

EFFICIENCY OF DISTRIBUTION CHANNEL & EXPANDING THE
REACH OF CEAT TIRES IN LUCKNOW” is submitted by Abhijeet
Nigam of Indira Institute of Management, Pune is a record of authentic
work carried out by him during the internship period.

Place: Lucknow.
Date:

MR. MOHD. ANAS

REGIONAL MANAGER
LUCKNOW
 INDEX
S No. TOPIC PAGE NO.

1 ACKNOWLEDGEMENT 4
2 IMPORTANCE OF THE PROJECT 5
3 OBJECTIVES OF THE PROJECT 6
4 METHODLOGY ADOPTED 7
5 TARGET RESPONDENTS 8
6 INDUSTRY PROFILE 9
7 EVOLUTIONARY PHASE OF THE TYRE INDUSTRY IN INDIA 11
8 MAJOR PLAYERS IN THE MARKET 12
9 COMPANY PROFILE 13
10 COMPOSITION OF BOARD 15
11 VISION OF THE COMPANY 16
12 VALUES OF THE COMPANY 16
13 GEOGRAPHICAL PRESENCE 18
14 PRODUCT CATEGORY 19
15 CUSTOMER SEGMENTS 20
16 DISTRIBUTION CHANNEL 22
17 CHANNEL DESIGN 22
18 TYPICAL DISTRIBUTION DESIGN 24
19 MAJOR ACHIEVEMENTS 25
20 SWOT ANALYSIS 26
21 RESEARCH METHODOLOGY 28
22 ANLYSIS & FINDINGS 29
23 CONCLUSIONS 40
24 LIMITATIONS 41
25 ANNEXURE 43
 ACKNOWLEDGEMENT

First of all I would like to thank my honorable supervisor Dr. Thirugmal

Pillai, who helped me throughout the course of my internship.

I am highly grateful & like to express my sincere thanks to Mr. Anas

Siddqui, Regional Manager, Lucknow CEAT Ltd. who permitted me to do
my internship in such a prestigious organization.

I prepared this report on “Efficiency of Distribution Channel & Expanding

the reach of CEAT Tyres”. I am very much obliged for cordial
cooperation from employees of Sales & Marketing department of CEAT
Ltd, Lucknow.

I want to express my whole-hearted gratitude to them for their valuable

cooperation. Without this it would have not been possible to complete
the report.

Abhijeet Nigam
Student I.D – PGDM 0002/15
INDIRA INSTITUTE OF MANAGEMENT, PUNE.
 IMPORTANCE OF THE PROJECT

The project was undertaken with a view to study the efficiency of

distribution Channel of CEAT Tyres in Lucknow region & further expands
its reach.

The aim of the project was to check whether the current distribution
channel is efficient enough. Further it was aimed to bring the sub-
dealers to follow the distribution channel & buy from the authorized
distributor.

The project was also aimed at expanding the reach of CEAT Tyres in
terms of attracting new dealers & requesting the existing sub dealers to
up the ante in terms of sales.

Apart from it the project was also aimed towards increasing the visibility
of CEAT Tyres by putting up Billboards in front of the shops which are
dealing in various tyres. The main task was to find the suitable location
with a huge floating population where the output could be most in terms
of promotion.
 OBJECTIVES OF THE PROJECT

 To identify the existing & potential distribution channel &

appraising there relative strengths and weaknesses in context of
the consumer needs.

 To determine the needs of the dealers/retailers and the factors

governing there performance.

 To expand the reach of the CEAT Tyres.

Promoting the new Ayushman Tyre launched by CEAT for tractors in

Sandila, Hardoi district. (expanding the reach of CEAT tyres)
 METHODOLOGY ADOPTED

TYPE OF RESEARCH – Exploratory Research.

TYPE OF DATA – Primary Data

DATA COLLECTION METHOD – Primary Research. Interview through

Questionnaire.

SAMPLING – Random Sampling.

SAMPLE SIZE – 70 Dealer of tyres.

PERIOD SELECTED FOR STUDY – 25TH MAY 2016- 25TH JULY 2016

To do the research on Distribution channel & further expand the

company’s reach I thought of conducting a survey.
In the process I prepared a questionnaire for surveying the dealers
which had 11 questions.
My questionnaire consisted of both open ended & close ended questions
(mostly dichotomous) so that it gets easy for respondents to answer.
Again there were question which had more than two options. The
respondents were asked to scale certain questions on a particular scale.
Open ended questions helped the respondents to formulate there
answers & gave a detailed view of their opinion. The survey was done
through one to one interview.
 TARGET RESPONDENTS

CEAT LTD.’s customers are the dealers and the end customer of bus &
truck owners.
I had to cover dealers & sub dealers as part of my project & covered 70
odd dealers who dealt in CEAT Tyres. Most of the target respondents I
interview were from Lucknow region.

One of the Dealers I visited during my survey in

Lucknow region.
 INDUSTRY PROFILE

The tyre industry in India has long been recognized as a core

manufacturing sector with the potential to drive national economic
growth and foster the development of technological capabilities through
its powerful backward and forward linkages, and the localization of high
value added manufacturing processes within domestic economies.

Key Features -
 At present there are 39 companies in the tyre sector in India
with 60 manufacturing plants.

 Major players are MRF, JK Tyres, and Apollo Tyres & CEAT,
which account for 63 per cent of the organized tyre market.
The other key players include Modi Rubber, Kesoram
Industries and Goodyear India, with 11 per cent, 7 per cent
and 6 per cent share respectively. Falcon, Tyre Corporation
of India Limited (TCIL), TVS-Srichakra, Metro
Tyres and Balkrishna Tyres are some of the other significant
players in the industry.

 While the tyre industry is largely dominated by the organized

sector, the unorganized sector is predominant with respect to
bicycle tyres.

 The industry is a major consumer of the domestic rubber

market. Natural rubber constitutes 80% while synthetic
rubber constitutes only 20% of the material content in Indian
tyres.

 The sector is raw-material intensive, with raw material

accounting for 70% of the total costs of production.

 Current level of radialization includes 95% for all passenger

car tyres, 12% for light commercial vehicles and 3% for
heavy vehicles.

 Total value of tyre exports form India is approximately

Rs.10500 crore (2014-15)
  The major factors affecting the demand for tyres include the
level of industrial activity, availability and cost of credit,
transportation volumes and network of roads, execution of
vehicle loading rules, radialization, retreading and exports.
 Industry turnover for the year 2014-15 was around Rs.50000
Crore.

ATMA is the governing body of tyre industry in India, Headquartered in

New Delhi (India), Automotive Tyre Manufacturers’ Association (ATMA)
is amongst the most active and well known national industry bodies in
the country. Being a representative body of eleven large tyre companies
in India accounting for over 90% of tyre production, ATMA has been
accorded the coveted status of true voice of the Indian tyre industry.

ATMA works towards promoting and safeguarding the interests of the

tyre industry in India primarily by acting as conduit between the
Government and the industry. The Association strives to be an active
participant in policy making process and holds frequent meetings with
the Government departments to discuss the challenges being faced by
the industry in the ever-changing economic environment.

The Association acts as the industry’s interface with the media, opinion
leaders, NGOs and other Industry associations around the world so as
to present the perspective of Indian tyre industry on different issues.
Evolutionary phases of the Tyre industry in India
Phase Period Characteristics Policy Regime
No domestic production.
Demand met through imports.
Phase Key players included Dunlop
1920-35 Liberal imports
I (U.K), Firestone & Goodyear
(USA)

Domestic production begins by

Imposition of tariff
erstwhile trading companies:
Phase & non-tariff
1936-60 Dunlop, Firestone, Goodyear,
II barriers on
and India Tyre & Rubber
imports
Company
Regulation on
capacity
expansion and
repatriation
Indian companies-MRF, of profits of
Premier & Incheck- enter foreign
Phase
1961-74 manufacturing sector with companies;
III
foreign technology; licensing of enforcement of
additional production capacity export obligation
on MNC;
protection from
external
competition
Entry of large Indian business
houses like Singhania & Modi Delicensing of
& technical collaborations with production,
Phase MNCs, introduction of radial placing of imports
1975-91
IV tyres, vertical integration and under OGL with
exponential growth in tyre tariff & non-tariff
production & exports barriers

External trade liberalization &

reduction in import duty; re- Progressive
Phase 1992 entry of MNCs either reduction in
V onwards independently or in import duty;
collaboration with Indian liberalized imports
capital
 MAJOR PLAYERS IN THE INDUSTRY

 MRF
 APOLLO TYRES
 BRIDGESTONE
 CEAT
 JK TYRES
 GOODYEAR
 TVS Srichakra Ltd.
 MICHELIN
 FALCON
 PIRELLI
 CONTINENTAL
 COMPANY PROFILE

CEAT the flagship company of RPG Enterprises was established in

1958. Its predecessor Cavi Electtrici e Affini Torino Spa was established
in Italy in 1924. Today CEAT is one of the leading tyre manufacturers in
India & has presence in global markets & has capacity of over 95000+
tyres per day. CEAT offers tyres to all segment & manufactures radials
for heavy-duty trucks & buses, light commercial vehicles, Earthmovers,
Forklifters, Tractors, Trailors, Cars, Motorcyles and Scooters as well as
Auto-rickshaws

CEAT produces Tyres for 3 different markets -

1. OEM
2. Replacement tyres
3. Exports

CEAT LTD.

PARENT COMPANY RPG

CATEGORY TYRE INDUSTRY
SECTOR AUTOMOBILES
TAGLINE/SLOGAN BORN TOUGH, TAKE IT ON.
USP PRDUCTS ARE KNOWN FOR
DURABILITY & SUPERIOR
QUALITY.

The company is headquartered at Annie Besant Road, Worli in Mumbai.

It has manufacturing plants in Mumbai, Nashik and Halol near Baroda.
CEAT owns:

 6 Manufacturing plants
 10 outsourcing units for tyres, tubes and flaps
 3 dedicated 2-3-wheeler plants controlled by CEAT

CEAT manufactures a wide range of tyres for various customer radials

for Indian vehicles and caters to various user segments including -

 Heavy-duty Trucks and Buses

 Light Commercial Vehicles
 Earthmovers
 Forklifts
 Tractors
 Trailers
 Cars
 SUVs
 Motorcycles and Scooters
 Auto-rickshaw
 COMPOSITION OF BOARD

Mr. H. V. Goenka (Chairman)

Mr. Anant Goenka (Managing Director)

Mr Manoj Jaiswal (Chief Financial Officer)

Mr. Arnab Banerjee (Executive Director Operations)

Mr.Tom Thomas (Executive Director Technology & Projects)

Mr.Dilip Modak (Senior Vice President Manufacturing)

Mr. Chandrashekhar Ajgaonkar - Senior V.P Quality Based Management

Mr.Kumar Subbiah (Senior Vice President)

Mr. Tamal Saha (Senior Vice President Sales)

 VISION OF THE COMPANY

To be amongst the most profitable tyre companies in India by 2016

through market leadership in select categories in India and worldwide.

VALUES OF THE COMPANY

Since its inception, CEAT has been governed by its core values. They
shape the culture and define the character of our company. They guide
how they behave and make decisions.

Challenger: CEAT always attempts to try new things and never fears
failure. ‘We question existing ways of working and we are open to
critique and suggestions from the team and others in the organization’.
This is what every CEAT employee believes.

Aspiration-led: CEAT encourages their people to dare to dream. And

their aim is to deliver exceptional service to their customers. Thus they
try to do it by exceling at their work.

Integrity: CEAT take responsibility for its actions and ensures that the
behavior matches with their words. Being honest and transparent in their
work is their continuous endeavor.

Result-obsession: CEAT respects the time of others and strive to display

a sense of urgency in taking decisions.

Openness: CEAT values the skills, strengths and views of others and
has a passion for learning and sharing ideas. The employees appreciate
and are responsible with the information the company shares with them.
Core Values:

• Create customer value.

• Ensure dealer profitability.
• Professional and transparent dealing.
• Mutual respect between dealer and customers.

CEAT’s Commitments towards Customers:

 Ensure Value for Customers.

 Ensure to provide High Quality Premium tyres always.
 Ensure transparent business policy and clear communication.
 Committed to provide best services all the times.
 Hassle free claim settlement.
 GEOGRAPHICAL PRESENCE

Apart from a pan India presence CEAT has made its mark in
Bangladesh & Sri Lanka & has a good business in the region.
CEAT marks the highest exports from India in truck, OTR and LCV
categories to over 130 countries. CEAT meets and exceeds the
expectations of its customers: with special sizes, quality that matches
world standards, and a global presence.

They have 3500+ strong dealer networks in India with 33 regional offices
& around 110 CFAs across India.

CEAT presence worldwide denoted by Blue dots on the map.

 PRODUCT CATEGORIES

CEAT manufactures a wide range of tyres for various customer radials

for Indian vehicles and caters to various user segments including -

 Heavy-duty Trucks and Buses

 Light Commercial Vehicles
 Earthmovers
 Forklifts
 Tractors
 Trailers
 Cars
 SUVs
 Motorcycles and Scooters
 Auto-rickshaw

Apart from it also produces Inner tubes for all kind of vehicles & rubber
flaps.

TYRE TUBE

FLAP
 CUSTOMER SEGMENTS

CEAT doesn’t deal directly with customer. It sells its tyres through
distributor, authorized dealers & exclusive stores named as CEAT
Shoppe. It has a strong network boosting of approximately 3000+
dealers &

It enjoys long standing business tie ups with major Original Equipment
Manufacturer including –

2 Wheelers

 Honda
 Hero
 Bajaj
 Royal Enfield
 Yamaha

Small Commercial Vehicles

 Piaggio
 Mahindra & Mahindra
 Force Motors
 Atul Shakti
 SIL

Passenger

 Maruti
 Tata
 Mahindra.

Light Commercial Vehicle

 Tata
 Ashok Leyland
 Eicher
  SML ISUZU
 HML
 Mahindra

TRUCK

 Bharat Benz
 Tata Motors
 Ashok Leyland
 Eicher
 AMW

FARM TYRES

 Mahindra & Mahindra

 John Deree
 HMT
 TAFE
 New Holland
 Sonalika
 Swaraj
 Eicher

OTR TYRES

 BEML
 Caterpillar
 JCB
 Telcon
 Godrej
 New Holland
 Voltas
 L&T
 DISTRIBUTION CHANNEL

CEAT has one of the largest distribution networks for tyres in India. It
has divided the Indian sub-continent into 33 regions and has set up a
regional office for each region. Carrying & Forwarding agents are
attached to them. Often the larger regions have 2 or 3 or more C&FA to
cover across the region properly. The total number of C&FA’s across the
country is 112.

The basic operating structure of CEAT Ltd. comprises of the following

entities-
 Factory
 DDC
 RDC
 C&FA
 Dealers

CHANNEL DESIGN

 CEAT has three level distribution structure.

 The factory supplies goods to RDC’s ( Regional Distribution

Centers) and from these RDC’s the goods are transferred to CFA
(Carrying & Forward Agent) which act as warehouse for
distribution to the dealers.

 There is only one DDC ( Divisonal Distribution Centre) this is at

Nashik and is used for storage and assembely of tyres,tubes &
flaps from the Nashik plant. RDC’s are the mother godowns for
storage of goods. The tyres,tubes & flaps are transported to these
from factories. The set is formed at RDC’s and strapped. Th tube
is inflated before transportation to RDC’s. In some cases RDC’s
 are required to supply the goods directly to the dealers and invoice
them in the required format.

 The CFA’s pull the goods from RDC’s according to demand. These
CFA’s then distribute the goods to the dealers.

The dealers are of three types –

1. Tyre Retailers – These are usually multi brand tyre dealers.

They stock many brands of tyres for a particular segment of
customers. These can further be divided into Truck dealers &
Non-Truck dealers.
2. Trader Dealers - These dealers are used typically to ensure
upcountry coverage where the company distribution network
is absent. These dealers have their shops in upcountry
locations or sell to other dealers in upcountry locations and
thus enhance the distribution reach of the company. They
purchase tyres in bulk and often avail of the turn over
discounts.
3. CEAT Shoppe – Ceat Shoppe is a retail outlet where only
Ceat tyres are sold. This is used mainly for passenger car
and 2 wheeler tyre sales. The customers get a range of tyres
and advise about selecting the right tyre while purchasing
from here. They also get a very good after sale service.
TYPICAL DISTRIBUTION DESIGN
 MAJOR ACHIEVEMENTS
• CEAT wins Gold at the EFFIE Awards 2011 for Be Idiotsafe Campaign.

• CEAT wins Cause Marketer of the year award at CNBC Awaaz Consumer Awards
2011

• CEAT wins awards for Employer Branding and Best HR Practices for 2010

• CEAT receives Reader's Digest Trusted Brand Gold Award for 2009

• The 2007-08 Raid de Himalayas 2 wheeler Rally was won on CEAT Tyres

• CEAT Shoppe wins Best Innovation Award 2007-08.

• From a 2 wheeler tyre to a Car Tyre to a Giant OTR Tyre, CEAT makes the entire
Range of Tyres.

• CEAT won the Employer Branding Award for "Excellence in Training 2007-08" ( *
Awards by the Asia Pacific HR congress)

• CEAT has adopted a village "Tirad Seth", near Nasik as part of its CSR activities.

• ICQCC Distinguish award for Quality Circle in 2002 at Lucknow India

• NCQC Distinguish award for Quality circle in 2004 at Mumbai

• NCQC Distinguish award for Quality circle in 2006 at Kanpur India

• CCQC Mumbai Chapter Distinguish Award for Quality Circle in 2007

• Best case study award from CII in 2005

• RPG Best TQ\M Team Award for CFT in 2005 and 2006

• Recognized with RPG BTT Six Sigma Team Award in 2005-06

• Winner of RPG Quality award in 2003, 2004 & 2006

• Certificate of merit in RPGOE in 2005

• 100 percent vendors are ISO certified

• Rated amongst top four auto ancillaries

• National Exports Award (CAPEXIL) - 13 times

• Best Exports certificate of merit - 7 times in the last 20 years.

 SWOT ANALYSIS

STRENGTHS

 CEAT is India’s second biggest tyre company with an annual

turnover of more than Rs.3500 Cr and more than 5000 employees.
 Superior quality products at competitive prices.
 High degree of customer satisfaction
 Vendors are 100% ISO certified.
 CEAT is the first tyre company in India to get the ISO/TS
16949:2002 certification, which is a combination of ISO 9000 and
QS 9000.
 Company has built a strong Brand image over the decades and
exports to over 100 countries.
 They have extensive distribution network with dealers and
stockists throughout the country.
 R&D initiatives have been inspirational for eg: tubeless tyres

WEAKNESSES

 Less presence in the international markets compared to industry

leaders despite exporting to many countries
 Stiff competition from Indian and international brands means
limited marker share

OPPORTUNITIES

 Improved road infrastructure has increased the demands of tyres

especially for Heavy Vehicles.
 Opportunities in markets abroad.
 Growth of India is upbeat, hence improved lifestyle of people with
increase in demand for goods augurs well
THREATS

 Volatility in raw material prices.

 Increasing prices of Crude Oil.
 Stiff competition both from national and international
companies.
 Government Policies w.r.t export duties, import duties, tax
levied on automobile industries and economic condition of
nation as it determines the sale of automobiles.
 Introduction of other transport facilities like metro, monorails
and local trains keeping pollution hazards caused by
combustion of automobile fuels.
 Fluctuations in exchange rates
 Cheaper Imports from China
 RESEARCH METHODOLOGY

TYPE OF RESEARCH – Exploratory Research.

TYPE OF DATA – Primary Data

DATA COLLECTION METHOD – Primary Research. Interview through

Questionnaire.

SAMPLING – Random Sampling.

SAMPLE SIZE – 70 Dealer of tyres.

PERIOD SELECTED FOR STUDY – 25TH MAY 2016- 25TH JULY 2016

To do the research on Distribution channel & further expand the

company’s reach I thought of conducting a survey.
In the process I prepared a questionnaire for surveying the dealers
which had 11 questions.
My questionnaire consisted of both open ended & close ended questions
(mostly dichotomous) so that it gets easy for respondents to answer.
Again there were question which had more than two options. The
respondents were asked to scale certain questions on a particular scale.
Open ended questions helped the respondents to formulate there
answers & gave a detailed view of their opinion. The survey was done
through one to one interview.
 ANALYSIS & FINDINGS

Does price influence the purchase of tyre?

30

25

20

15
Series1

10

0
1 2 3 4 5

According to Dealers, price does play a role in customer while selecting

a particular tyre.
Out of the 70 dealers interviewed 36 strongly agreed while 28 agreed
that price played a major role on part of customers before choosing a
particular tyre.
Warranty on a particular tyre influences purchase on
part of customers?

30

25

20
Series1
15
Series2

10 Series3

0
1 2 3 4 5

According to maximum dealers warranty of a particular tyre did result in

its demand. Out of the 70 dealers nearly 51 dealers gave 4 or above on
a scale of 5 in terms of warranty on a tyre on a tyre creating demand for
it.
Does Grip of a tyre trigger Demand of a product?

35

30

25

20
Series1
15

10

0
1 2 3 4 5

According to the Dealers Grip of a particular tyre did result in sale of a

particular tyre but it was not that important on part of customers to
choose it. According to some of the dealers Grip was a factor considered
important to buy a tyre by upcountry customers.
Quality of a tyre influences sale?

35

30

25

20

15

10

0
1 2 3 4 5

According to dealers Quality of a particular tyre, mattered the most for a

buyer to buy a tyre. Irrespective of type of customers, the quality of tyre
enhanced its sale.
Does look of tyre influenced its sale?

35

30

25

20

15

10

0
1 2 3 4 5

According to dealers Look didn’t play a stronger role on part of

customers before choosing a particular tyre for their vehicle. All that
really mattered was the price, quality & warranty.
CEAT delivers on time?

35

30

25

20

15

10

0
1 2 3 4 5

According to maximum dealers & retailers CEAT’s delivery was on time.

They themselves understood that supply was hindered in some cases
because of late dispatch from RDC apart from that most of the tyres
demanded were delivered on time.

Late delivery in some cases resulted in a customer going for another

brand therefore bringing the sale of CEAT tyres down.
Does the order placed by you fulfilled?

35

30

25

20

15

10

0
TUBELESS TYRETUBE EQUAL

According to the dealers & retailers interviewed most of them were

satisfied with the fulfillment of the order. Most of the orders placed by
them were fulfilled apart from some cases where shortage of a particular
tyre or tube resulted in the failure of it being fulfilled.

Overall the order placed was usually fulfilled.

Time taken between the order placed & delivery being made?

35

30

25

20

15

10

0
TUBELESS TYRETUBE EQUAL

According to 80% Dealers & retailers surveyed most of them received

there order placed within stipulated time.

For the retailers who ordered the tyres from dealers, the time taken
between order placed & delivery being done was less as compared to
the retailers who placed order through the distributor.

Apart from it the dealers were happy with the delivery being done timely.
Average turnaround time (TAT) for claim settlement?

35

30

25

20

15

10

0
TUBELESS TYRETUBE EQUAL

The time taken by the company on part of settling the claim took a lot of
time according to the Dealers & retailers.

Retailers had to settle the issue sometimes from their pocket just to
make sure they didn’t their business.

The claim settlement of other tyre companies is quite smooth & hence
especially in two wheeler tyre market the buyers preferred TVS because
of their smooth counter claim process.
Do you want DSE to be trained for claim
settlement?

35

30

25

20

15

10

0
TUBELESS TYRETUBE EQUAL

Most of the dealer & retailers emphasized on getting the DSE trained for
claim settlement to make sure the process in smooth & done timely.

Getting the DSE trained in terms of handling the claim settlement would
make the process efficient.
The sale of which type of tyre is more?

35

30

25

20

15

10

0
TUBELESS TYRETUBE EQUAL

According to most of the dealers in the city markets, the tubeless tyre
was demanded more in 2 wheeler category, whereas in the upcountry
market the demand of Tyre with tube was more.

According to few dealers & retailers the demand was equal for both
types of tyres.
Awareness of CEAT Brands on part of end
consumers?

25

20

15

10

0
1 2 3 4 5

According to the dealers most of the consumers hardly had any idea
about all brands of the tyres of a particular segment.

Like in 2 wheeler tyre segment there are lot of brands like F85, F86,
Secura Zoom, Sport etc. But the end consumer hardly had any
knowledge about them
 CONCLUSIONS

During the whole period of my internship my ultimate focus was to find

out any flaws in the distribution channel & further get more retailers &
dealers for CEAT.

 The retailers should be visited on an occasional basis by company

people to make sure that they stick to our distributor.

 The turn-around time for claim settlement should be reduced to

ensure loyalty among customers.

 DSEs should be trained for claim settlement.

 Retailers don’t get the schemes as compared to other companies

which further makes them promote another brand.

 Retailers should be provided with a tyre catalogue so that it is

easier for them to explain the pros & cons to the buyer as per
his/her needs.

 A good healthy long term cordial relation with dealers & retailers
will ensure boost in sales.

 Lesser time should be taken to deliver the tyres to retailers by

increasing the fleet.

 According to some retailers some tyres are overpriced & hence

they perish to competition therefore price should be decided post
comparing with competitors.

 Distributor could be asked to increase the credit period for some

retailers in order to boost sales.
 LIMITATIONS

There were certain limitations I faced while conducting the study.

They are briefly mentioned below –

 The target market was a problem. Most of them were reluctant to

answer the questions or interact.
 Busy schedule of the dealers was another problem while doing the
survey
 The survey has been done in Lucknow only hence the conclusions
may not be applicable to other markets.
 Confidentiality of information was barrier that hindered the study.
The organization had to maintain secrecy that is not to be revealed
in front of someone who is an outsider.
 Observations based on two months of working with CEAT as an
intern.
 Amateur Researcher: Lack of experience
 Inadequate knowledge and experience of the Tyre industry.
 QUESTIONNAIRE
DEALER SURVEY

NAME -
ADDRESS -
PHONE NUMBER –

Q1. Arrange the following according to demand?

 MRF
 CEAT
 TVS
 BIRLA
 JK Tires
 Apollo
 Goodyear
 Bridgestone

Q2. Customer preference while selection of tyre –

Strongly Agree Neutral Disagree Strongly
Agree Disagree
PRICE
AFTER
SALE
SERVICE
GRIP
QUALITY
LOOK

Q.3 CEAT delivers on time?

5 4 3 2 1

Q4. Does the order placed by you is fulfilled?

 YES
 NO
Q5. Average time taken between the order placed & delivery being
made?
 Within 3 days.
 3-5 days
 5-7 days
 >7 days.

Q6. Average TAT time for claim settlement?

 0-7 Days
 8-15 Days
 15-30 Days
 > 30 Days

Q.7 Do you want the DSE to be trained for claim settlement?

 YES
 NO

Q.8 Rate the following ona scale of 5 -

5 4
3 2 1
Ceat is trustworthy.
Customer Demand for CEAT.
Awareness of CEAT Brands.
Promotional activities.
Profits as a dealer are-
Ceat maintains good relations.
Schemes of CEAT are-
Suitable information is provided to
you.

Q.9 The sale of which Tyre is more these days?

 TT
 Tubeless

Q.10 Billboard is required?

 Yes
 No

Q.11 Any suggestion for CEAT ?