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Dissertation on contemporary issues st

1 report

Channel management, Sales and distribution system of two wheeler segment in Automobile industry

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Contents

Objective .......................................................................................................................................

Research methodologies: .............................................................................................................

Dimensions in channel management: ..........................................................................................

Channel Management and Physical distribution management....................................................

Physical distribution: .................................................................................................................

Channel management: ..............................................................................................................

Automobile industry: ....................................................................................................................

Indian two wheeler industry .........................................................................................................

Sales Volumes Analysis – Motorcycles......................................................................................

Sales volume analysis of scooters: ............................................................................................

Hero Motocorp .............................................................................................................................

Bajaj auto: .....................................................................................................................................

TVS motors ....................................................................................................................................

Segment of motorcycles in automobile ........................................................................................

1-Economy segment .................................................................................................................

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2-Executive segment ................................................................................................................. Unlock full access with a free trial.

3-Premium segment: ................................................................................................................

Download With Free Trial Channel design in automobile companies ....................................................................................

Heromoto channel design:........................................................................................................

Bajaj auto channel design: ........................................................................................................

TVS motors channel design: ......................................................................................................


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Objective:

The purpose of the study is related to analyse the channel management in the two wheeler segment of automobile industry. Here we analyse the way the channel are operating and t importance of channel in the two wheeler segment of Automobile industry. In the study, w also make an understanding of the strategy behind the way by which they have design the channel members.

Research methodologies: The methodology adopted will be data collection from primary and secondary sources. The secondary data will be collected includes articles published in journals, publications, annual reports, websites relating to the subject under study will be used extensively.

The primary data will be collected by visiting the dealers in the M ysore city. To collect th data from the dealers, a questionnaire will be prepared as a means of collecting the data. I addition to this, models and conceptual frameworks relevant to topic of discussion will be considered.

Dimensions in channel management: 1. Role of channel 2. Distribution objectives

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3. Types of marketing channel

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4. Developing the channel design

5. Selection and appointment Download of channelWith Free Trial 6. Appraisal of channel members 7. Channel evaluation 8. Logistics management

 Channel Management and Physical distribution : Sign up tomanagement vote on this title

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Channel management and physical distribution, though closely related, are quite distinct f each other. While physical distribution deals with logistics, warehousing, and inventory

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Order processing Inventory control Inventory location and warehousing Materials handling Transportation

Channel management:

Channel management refers to the way that a business or supplier of products uses variou marketing techniques and sales strategies to reach the widest possible customer base. Und channel management, the company deals with the external organisation. The company use these external organisations to achieve its objectives of profitabilit y and customer satisfac and in turn ensure that the channel member’s objectives are satisfied. Channel management aims at satisfying the three entities – consumers, channel members the company.

Channel members You're Reading a Preview

Consumers


Company

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Channel Management help the organization to maintain excellence in two ways 

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By improving the effectiveness of their sales investments and interactions with  Useful  Not useful customers; By simultaneously driving for efficiency in all channels and the associated back

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Find and capture pockets of “granular growth” : Nearly every company with a dispersed customer base and a large number of sales transactions has considerab opportunity for organic growth if it looks at the right level of granularity. Channel management take a fine-grained view by geography, industry segment, and offerin to find the hidden pockets of growth and then tailor the strategies and approaches needed to capture them.

Align sales channels in a multichannel world: Customers are increasingly movi across all channels to get what they want. Some of them demand increased service for certain transactions while others prefer low-touch. Channel management help companies form effective selling.

Defining a channel management strategy for each segment allows you to be more effectiv within each segment, while gaining efficiency at the same time. Still, maintaining brand consistency across all channel segments is critical to your long-term success.

Few companies really comprehend channel management in a way that really helps them. Sales channels - being the conduits by which we distribute our products to the end-user come in many shape, from direct, to the web, to the traditional retail environment. And, w just doing whatever we can to get any business from any of them. But is that the most efficient and effective approach.

You're Reading a Preview That’s where Channel Management comes in. Channel management, as a process b y whic company creates formalized programs and servicing customers within a specif Unlockfor fullselling access with a free trial. channel, can really impact your business — and in a positive way. To get started, first segm Download Withbuying Free Trial your channels by like characteristics (their needs, patterns, success factors, etc.) an then customize a channel management program that includes:

Goals: Define the specific goals you have for each channel segment.

Policies: Construct well-defined polices for administering the accounts within this chann Be sure about the unique characteristics of each segment in mind, in defining policies for  account set up, order management, product fulfilment, etc. Sign up to vote on this title

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Products: Identify which products in your offering are most suited for each segment and create appropriate messaging. Also, determine where your upsell opportunities lie.

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industry in India and growing presence of multinational investment to has increase in ove growth.

De-licensing in 1991 has put the Indian automobile industry on a new growth track, attrac foreign auto gains to setup the production facilities in the country to take advantage of various benefits its offers. This took that Indian automobile production from the 5.3 millio units in the 2001-02 to 10.8 million units in 2007-08. The other reason is to be attracting global auto manufacture to Indian are the country's large class population, growing earnin power, strong technology capability and availability of trained manpower at competitive price.

Indian two wheeler industry :

The Indian two-wheeler industry recorded sales volumes of 3.4 million units in Q3, 2011121, a growth of 11.0% year on year. Although the year on year volume growth of the industry remained in double digits, the pace of growth during the last quarter was at its gear in the last three years. The deceleration in growth was contributed mainly by the motorcycles segment which grew at a much lower rate of 9.2% year on year in Q3, 2011Even as the scooters segment continued to post 20% year on year expansion. Overall, ICR expects the domestic 2W industry to report a volume growth of 13% in 2011-12 as we growth to fade further in Q4, 2011-122 due to base effect. You're Reading a Preview In an environment where the northward movement of inflation, fuel prices and interest rat Unlock full access with a free trial. has been the nemesis of the Indian automobile industry at large, the two wheeler industry been the most resilient reflected in Download its healthyWith volume Freegrowth Trial of 15.0% year on year , 2011-12, The growth has been supported by various structural positives associated with th domestic two wheeler industry including favourable demographic profile, moderate two wheeler penetration levels (in relation to several other emerging markets), under develope public transport system, growing urbanization and expected strong replacement demand, besides moderate share of financed purchases. Sign up to vote on this title

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Q1

Domestic

2009-10

Bhanu Reort

Q2


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Q1

Q3

2010-11

2009-10 2011-12

2011-12

2011-12

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2010-11 2011-12

Motorcycles

7,341,122

9,019,090

2,464,143

2,558,515

2,556,782 25.9%

22.9%

17.5%

Scooters

1,462,534

2,073,797

532,867

650,155

659,643

27.4%

41.8%

13.3%

Mopeds

564,584

697,418

190,672

192,859

186,472

30.9%

23.5%

21.0%

9,368,240

11,790,305

3,187,682

3,401,529

3,402,897 26.0%

25.8%

17.0%

Q1

Q2

Q3

Total Domestic

2009-10

Exports

2010-11

Q1 2009-10

2011-12

2011-12

2011-12

2010-11 2011-12

Motorcycles

1,102,978

1,480,983

482,566

492,408

448,090

13.6%

34.3%

27.1%

Scooters

30,125

52,312

20,949

24,696

23,950

16.7%

73.6%

100.4%

Mopeds

6,905

6,295

1,461

3,478

2,796

-5.4%

-8.8%

-44.0%

Total Exports

1,140,008

1,539,590

504,976

520,582

474,836

13.5%

35.0%

28.6%

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Sales Volumes Analysis – Motorcycles:

Download With Free Trial The domestic motorcycles segment recorded a volume growth of 9.2% YoY in Q3, 2011and as has been the trend over the last several quarters, the >125cc segment of motorcycle grew much faster than the 75-125cc segment. With this, the contribution of the >125 cc segment to the total motorcycles segment increased from 26% in 2009-10 to 29% in 9m, 2011-12. 



Market Share Trends: The Indian motorcyclesSign segment continues to be dominat up to vote on this title Not useful by Hero MotoCorp which has maintained its market share  at over 55% in the  Useful domestic motorcycles segment over the last five quarters . The top three players accounted for 89.5% of the industry’s volumes in Q3, 2011-12 (92.0% in 2007-08

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Sales volume analysis of scooters:

Barring Q1, 2011-12, the growth in scooter segment’s sales volumes has generally outperformed that of the motorcycles segment, partly due to the former’s smaller base. In 2011-12 too, the sales volumes of the domestic scooters segment at 660,000 units recorde growth of 21.6%, higher than the 9.2% growth in motorcycle sales. With this, the share of scooters segment in the total domestic two-wheeler volumes increased to 19.4% in Q3, 12 from 17.6% in 2010-11. 

Market Share Trends: Overall, Honda Motorcycles continues to maintain its leadership position in the scooters segment through its flagship brand Activa (besi Aviator and Dio) enjoying a market share of 50.7% in Q3, 2011-12. While capacit shortfall at the company’s plant at Manesar (Haryana) had restricted its volume growth in the recent past, the company began commercial production at its new at Tapukara (Rajasthan) in July 2011. This has allowed the company to consolidat market position over the last two quarters. However, Hero Motocorp’s demonstrat success in improving market share (through its sole brand Pleasure ) coupled with scooter models proposed to be launched by Hero MotoCorp, TVS and Yamaha ov the short to medium could imply shrinkage of market share gap between the mark leader and others over time. You're Reading a Preview

Hero Motocorp:


Download Free in Trial ―Hero‖ is the brand name used by the MunjalWith brothers the year 1956 with the flagship company Hero Cycles. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possib to drive a vehicle without polluting the roads. The company introduced new generation  Sign up to vote on this title motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'F  Useful  Not useful - Shut it - Forget it' campaign captured the imagination of commuters across India, and H Honda sold millions of bikes purely on the commitment of increased mileage

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The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed fo on expanding company's footprint in the global arena.

Hero Motocorp's mission is to become a global enterprise fulfilling its customers' needs a aspirations for mobility, setting benchmarks in technology, styling and qualit y so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Bajaj auto:

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches ove wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characterist the group today, are often traced back to its birth during those days of relentless devotion You're Reading a Preview common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple o access with a free trial. Mahatma Gandhi. In fact, GandhijiUnlock had full adopted him as his son. This close relationship an his deep involvement in the independence movement did not leave Jamnalal Bajaj with m Download With Free Trial time to spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rah  Sign up to vote this titleof the Bajaj Bajaj, took charge of the business in 1965. Under his leadership, the on turnover  Useful  Not Auto the flagship company has gone up from INR.72 million to INR. 120useful billion, it s prod portfolio has expanded and the brand has found a global market. He is one of India’s mos distinguished business leaders and internationally respected for his business acumen and

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North India and one at Indonesia. The company has a production capacity of 300 thousand units a year.

TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It repres premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat an Honda. It also distributes automotive spare parts for several leading manufacturers.

TVS & Sons has grown into a leading logistics solution provider and has set up state-of-th art warehouses all over the country. It has also diversified into distributing Garage equipm that ranges from paint booths to engine analyzers and industrial equipment products.

Segment of motorcycles in automobile: 1-Economy segment :


2-Executive segment



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3-Premium segment:




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Channel design in automobile companies : Heromoto channel design:

Manufacturing plant Gurgaon (Hariyana) Dharuhera (Hariyana) Haridwar (Hariyana)

Carrying and forward Management


Authorised distributors and


Parts distributors

Just for her

dealers


Authorised service centres

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Bajaj auto channel design:

Manufacturing plant Waluj (Maharashtra) Chakan (Maharashtra) Pant Nagar (Uttaranchal)

Carrying and forward Management

You're Reading a Preview UnlockAuthorised full access with a free trial.

distributors and Download With Free Trial

dealers

Service STN Sign up to vote on this title

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TVS motors channel design:

Manufacturing plant Hosur Tamilnadu Mysore (Karnataka) Solan (Himachal Pradesh)

Carrying and forward Management You're Reading a Preview Unlock full access with a free trial.


Authorised main dealers

Authorised dealers

Parts locator


 References:

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