1|Page

............................................................................................................................................................................ 3 Dimensions in channel management: ............................................................................................................................................................. Error! Bookmark not defined............................................................... Error! Bookmark not defined............................................................................................... 2|Page .....................................................................................................................Contents Objective ............................................................................................................... 8 Hero Motocorp ................. 9 Segment of motorcycles in automobile .................................................................................................................. Bajaj auto channel design: ....................................................... 3 Channel Management and Physical distribution management.................................................................................................................. 3 Research methodologies: ................................................ 11 Channel design in automobile companies .................................. 10 1-Economy segment ........................................................................................................................................................................................................................................................................... 3 Physical distribution: ............................................ 10 3-Premium segment: .............................. 10 2-Executive segment ............................................... Error! Bookmark not defined........................... 3 Channel management: ......................................................................................................................................................................................... 8 Bajaj auto: ................................................................................................................................................. 7 Sales volume analysis of scooters: ................................................. 5 Indian two wheeler industry .............................................. TVS motors channel design: ................................................................................. 11 Heromoto channel design:................................. 9 TVS motors ........................................................................... 6 Sales Volumes Analysis – Motorcycles................................ 4 Automobile industry: .......................................

2. To collect the data from the dealers. In addition to this. publications. Dimensions in channel management: 1. Channel management is much broader and is concerned with the entire process of setting up and operating the channel for meeting the company objectives. While physical distribution deals with logistics. 6. Role of channel Distribution objectives Types of marketing channel Developing the channel design Selection and appointment of channel Appraisal of channel members Channel evaluation Logistics management Channel Management and Physical distribution management: Channel management and physical distribution. 8. we also make an understanding of the strategy behind the way by which they have design the channel members. Physical distribution: Physical distribution refers to the actual physical flow of products. The primary data will be collected by visiting the dealers in the Mysore city. websites relating to the subject under study will be used extensively. 4. a questionnaire will be prepared as a means of collecting the data. The secondary data will be collected includes articles published in journals. and inventory management. Physical distribution management is the development and operation of processes resulting in the effective and efficient physical flow of products Effective physical distribution management requires careful attention to five interrelated activities: 3|Page . Here we analyse the way the channel are operating and the importance of channel in the two wheeler segment of Automobile industry. In the study. 3. are quite distinct from each other. 7. though closely related.Objective: The purpose of the study is related to analyse the channel management in the two wheeler segment of automobile industry. warehousing. 5. models and conceptual frameworks relevant to topic of discussion will also be considered. Research methodologies: The methodology adopted will be data collection from primary and secondary sources. annual reports.

2. Channel management and sales and distribution management encompass how and to whom companies sell their products and services. Under channel management. 4|Page .  Optimize return on sales investments: Channel management approach helps companies gain transparency on the performance of their route-to-market mix while identifying potential improvement areas and concrete ways to achieve them. sales-force effectiveness. the channels they use.1. and other areas. 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 various marketing techniques and sales strategies to reach the widest possible customer base. and the back-office operations that support these efforts. channel members and the company. The company uses these external organisations to achieve its objectives of profitability and customer satisfaction and in turn ensure that the channel member’s objectives are satisfied. 3. the company deals with the external organisation. 4. Channel management aims at satisfying the three entities – consumers. in areas such as sales operations. It helps to address specific challenges in their market strategy. By simultaneously driving for efficiency in all channels and the associated back office/sales operations. Consumers Channel members Company Channel Management help the organization to maintain excellence in two ways   By improving the effectiveness of their sales investments and interactions with customers. 5.

from direct. to the traditional retail environment. etc. Align sales channels in a multichannel world: Customers are increasingly moving across all channels to get what they want. in defining policies for account set up. Few companies really comprehend channel management in a way that really helps them. Products: Identify which products in your offering are most suited for each segment and create appropriate messaging. maintaining brand consistency across all channel segments is critical to your long-term success. vehicles. etc. multi utility vehicles. The automobile industry in India the tenth largest in the world with the annual production of the approximately 2 million units expected to become one of the major global automotive industries in coming year.being the conduits by which we distribute our products to the end-user come in many shape. Channel management take a fine-grained view by geography. buying patterns. product fulfilment. Some of them demand increased services for certain transactions while others prefer low-touch. first segment your channels by like characteristics (their needs.) and then customize a channel management program that includes: Goals: Define the specific goals you have for each channel segment. That’s where Channel Management comes in. to the web. Channel management help companies form effective selling. Defining a channel management strategy for each segment allows you to be more effective within each segment. we’re just doing whatever we can to get any business from any of them. A number of the domestic companies produce to the automobile 5|Page . Also. determine where your upsell opportunities lie. But is that the most efficient and effective approach. Sales/Marketing Programs: Design support programs for your channel that meet their needs. tractors. three wheeler. To get started. industry segment. Policies: Construct well-defined polices for administering the accounts within this channel. And. success factors. Automobile industry: The Indian automobile Industry consists of five segment: commercial. can really impact your business—and in a positive way. two-wheeler. Sales channels . and offerings to find the hidden pockets of growth and then tailor the strategies and approaches needed to capture them. and passenger cars.  Find and capture pockets of “granular growth”: Nearly every company with a dispersed customer base and a large number of sales transactions has considerable opportunity for organic growth if it looks at the right level of granularity. order management. while gaining efficiency at the same time. Be sure about the unique characteristics of each segment in mind. as a process by which a company creates formalized programs for selling and servicing customers within a specific channel. not what your idea of their needs are. Channel management. Still.

2011-122 due to base effect. strong technology capability and availability of trained manpower at competitive price.industry in India and growing presence of multinational investment to has increase in overall growth.2% year on year in Q3. moderate two wheeler penetration levels (in relation to several other emerging markets). This took that Indian automobile production from the 5. Indian two wheeler industry: The Indian two-wheeler industry recorded sales volumes of 3. Although the year on year volume growth of the industry remained in double digits. growing earning power. The other reason is to be attracting global auto manufacture to Indian are the country's large class population. Overall. 6|Page . under developed public transport system.0% year on year . fuel prices and interest rates has been the nemesis of the Indian automobile industry at large.8 million units in 2007-08. a growth of 11. the two wheeler industry has been the most resilient reflected in its healthy volume growth of 15. besides moderate share of financed purchases. attracting foreign auto gains to setup the production facilities in the country to take advantage of various benefits its offers.3 million units in the 2001-02 to 10. ICRA expects the domestic 2W industry to report a volume growth of 13% in 2011-12 as we expect growth to fade further in Q4. In an environment where the northward movement of inflation. The growth has been supported by various structural positives associated with the domestic two wheeler industry including favourable demographic profile. 2011121. 2011-12. the pace of growth during the last quarter was at its lowest gear in the last three years.0% year on year. Even as the scooters segment continued to post 20% year on year expansion. 2011-12. growing urbanization and expected strong replacement demand.4 million units in Q3. The deceleration in growth was contributed mainly by the motorcycles segment which grew at a much lower rate of 9. De-licensing in 1991 has put the Indian automobile industry on a new growth track.

8% 35.090 23.905 52.5% 159.976 492. 2010-11).2% 21.0% 27.480.8% 92.9% 22.6% 31.672 3.682 Q1 2.6% 2.4% 13.7% -5.090 1.0% 17. The top three players accounted for 89. with Honda Motorcycles reclaiming its spot as the third largest player.008 1. the >125cc segment of motorcycles grew much faster than the 75-125cc segment.341.1% 100.8% 17.312 6.2% 34.240 11.5% 34.5% 25.790.836 13.6% -8. 201112.Q1 Domestic 2009-10 2010-11 2011-12 Motorcycles Scooters Mopeds Total Domestic Q2 2011-12 Q3 2009-10 2011-12 2010-11 Q1 2011-12 Q2 2011-12 Q3 2011-12 7.073.295 482.7% 88.  Market Share Trends: The Indian motorcycles segment continues to be dominated by Hero MotoCorp which has maintained its market share at over 55% in the domestic motorcycles segment over the last five quarters .5% 1.9% 41.0% in 2007-08).019. With this. In the 75-125cc segment of motorcycles (that represented 71% of total motorcycles sales volumes in 9m.4% in 9m.796 474.797 564.0% Q1 15.3% 21.305 3.461 504.0% 188.140.125 6.897 26.696 3.478 520.529 Q2 2.8% 23. 2011-12 and as has been the trend over the last several quarters.5% 13. 2009-10.2% YoY in Q3.122 9.590 Sales Volumes Analysis – Motorcycles: The domestic motorcycles segment recorded a volume growth of 9. Yamaha has been the fastest growing having improved its market share from 8.6% 11.0% 28.464.462.401.4% 29.534 2.978 1. 7|Page .782 25. 2011-12).0% Q3 9.418 2.515 650.2% in 9m. In the >125cc segment of motorcycles.0% 17.643 186.582 448.402. 2011-12.408 24. 2010-11 to 10.1% in 9m. Hero MotoCorp continues to be a strong market leader with a share of 74. while Bajaj Auto continues to account for nearly half the segment’s volumes (49.558. 2011-12 (70. a position which it had lost out to TVS in the previous quarter after having retained it since Q4. 2011-12).539.0% 24.0% 7.1% in 9m.472 27.0% 21.3% Q2 9.556. the contribution of the >125 cc segment to the total motorcycles segment increased from 26% in 2009-10 to 29% in 9m.4% 30.102.859 3.4% -44. 2011-12 (92.950 2.0% Q3 2009-10 Exports 2009-10 2010-11 2011-12 2011-12 2011-12 2010-11 2011-12 2011-12 2011-12 Motorcycles Scooters Mopeds Total Exports 1.983 30.949 1.6% 16.867 190.9% 659.368.566 20.1% in 9m.3% 73.155 192.143 532.5% of the industry’s volumes in Q3.584 697.187.

2011-12. However. This would provide the growth ballast that would sustain Hero Honda in the years to come. the company began commercial production at its new plant at Tapukara (Rajasthan) in July 2011. Hero Honda Motors succinctly points out.000 units recorded a growth of 21. the Chairman. Hero Motocorp’s demonstrated success in improving market share (through its sole brand Pleasure) coupled with new scooter models proposed to be launched by Hero MotoCorp. increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream.7% in Q3. 201112 from 17. 2011-12 too.Forget it' campaign captured the imagination of commuters across India. 8|Page . While capacity shortfall at the company’s plant at Manesar (Haryana) had restricted its volume growth in the recent past. and it's our responsibility now to take the industry to the next level. In Q3. and Hero Honda sold millions of bikes purely on the commitment of increased mileage Having reached an unassailable pole position in the Indian two wheeler market. higher than the 9. This has allowed the company to consolidate its market position over the last two quarters. Hero Honda is constantly working towards consolidating its position in the market place. We'll do all it takes to reach there. partly due to the former’s smaller base. Hero Honda has a customer loyalty program since 2000. Hero Motocorp: ―Hero‖ is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.2% growth in motorcycle sales.000 dealerships and service points across India. The joint venture between India's Hero Group and Honda Motor Company. Honda Motorcycles continues to maintain its leadership position in the scooters segment through its flagship brand Activa (besides Aviator and Dio) enjoying a market share of 50. the sales volumes of the domestic scooters segment at 660. The company believes that changing demographic profile of India. the growth in scooter segment’s sales volumes has generally outperformed that of the motorcycles segment.4% in Q3. As Brijmohan Lall Munjal. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission.Shut it . 2011-12. During the 80s.6%.Sales volume analysis of scooters: Barring Q1. Hero Honda has a large sales and service network with over 3. called the Hero Honda Passport Program. the share of the scooters segment in the total domestic two-wheeler volumes increased to 19. TVS and Yamaha over the short to medium could imply shrinkage of market share gap between the market leader and others over time. With this. "We pioneered India's motorcycle industry.6% in 2010-11.  Market Share Trends: Overall. A legendary 'Fill it .

are often traced back to its birth during those days of relentless devotion to a common cause. dedication. travel and finance. Under his leadership. the group has an illustrious history. that he was able to give his full attention to the business. 9|Page . Kamalnayan Bajaj not only consolidated the group. is the parent and holding company of the TVS Group. TV Sundram Iyengar and Sons Limited. The group's flagship company.the vision of a mobile and an empowered India. Bajaj auto: The Bajaj Group is amongst the top 10 business houses in India. founder of the group. insurance. at the height of India's movement for independence from the British. iron and steel. The integrity. South and South East Asia. the company has 4 plants .and three.located at Hosur and Mysore in South India. Africa.The story of Hero Honda began with a simple vision . powered by its bikes. and is the flagship company of the USD 4 billion TVS Group. Rahul Bajaj. Hero MotoCorp Ltd. Gandhiji had adopted him as his son. with annual turnover of more than USD 1 billion in 2008-2009. company's new identity. Its footprint stretches over a wide range of industries. its product portfolio has expanded and the brand has found a global market. The company will provide an engaging environment for its people to perform to their true potential. took over the reins of business in 1942. but also diversified into various manufacturing activities. took charge of the business in 1965. The present Chairman of the group. His son. established in 1911. In fact. resourcefulness and determination to succeed which are characteristic of the group today. then 27. Jamnalal Bajaj. Kamalnayan Bajaj.72 million to INR. Hero Motocorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world. It will continue its focus on value creation and enduring relationships with its partners. spanning automobiles (two-wheelers and three-wheelers). setting benchmarks in technology. Founded in 1926. With a workforce of over 5000. TVS motors: The TVS Group is one of India's largest industrial conglomerates. in Himachal Pradesh.wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America. was a close confidant and disciple of Mahatma Gandhi. Middle East. He too was close to Gandhiji and it was only after Independence in 1947.. Bajaj Auto. He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. styling and quality so that it converts its customers into its brand advocates. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. home appliances. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. 120 billion. lighting. is ranked as the world's fourth largest two. the turnover of the Bajaj Auto the flagship company has gone up from INR.

. Segment of motorcycles in automobile: 1-Economy segment: 2-Executive segment 10 | P a g e . It represents premier automotive companies like Ashok Leyland. Jeeps and Cars. The company has a production capacity of 300 thousand units a year. Mahindra and Mahindra Ltd. It has also diversified into distributing Garage equipment that ranges from paint booths to engine analyzers and industrial equipment products. Fiat and Honda.North India and one at Indonesia. TVS & Sons has grown into a leading logistics solution provider and has set up state-of-theart warehouses all over the country. It also distributes automotive spare parts for several leading manufacturers. TVS and Sons also distribute Heavy Duty Commercial Vehicles.

3-Premium segment: 11 | P a g e .

References: www.in/index.com/ www.gtms-inc.com www.com/en-in/ www.mckinsey.blogspot.com www.heromotocorp.bajajauto.asp www.tvsmotor.in 12 | P a g e .management-punditz.

Sign up to vote on this title
UsefulNot useful