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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 the importance of channel in the two wheeler segment of Automobile industry. In the study, we also make an understanding of the strategy behind the way by which they have design the channel members.
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 Mysore city. To collect the data from the dealers, a questionnaire will be prepared as a means of collecting the data. In addition to this, models and conceptual frameworks relevant to topic of discussion will also be considered.
Dimensions in channel management:
1. 2. 3. 4. 5. 6. 7. 8.
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, though closely related, are quite distinct from each other. While physical distribution deals with logistics, warehousing, and inventory management. Channel management is much broader and is concerned with the entire process of setting up and operating the channel for meeting the company objectives.
Physical distribution refers to the actual physical flow of products. 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:
2. the channels they use. 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.1. in areas such as sales operations. 3. 5. the company deals with the external organisation. Channel management aims at satisfying the three entities – consumers. 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. Under channel management. and other areas. By simultaneously driving for efficiency in all channels and the associated back office/sales operations. and the back-office operations that support these efforts. sales-force effectiveness. 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. Channel management and sales and distribution management encompass how and to whom companies sell their products and services. It helps to address specific challenges in their market strategy. 4. channel members and the company. 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. 2|Page .
three wheeler. buying patterns. product fulfilment. order management. Defining a channel management strategy for each segment allows you to be more effective within each segment. industry segment. Be sure about the unique characteristics of each segment in mind. and offerings to find the hidden pockets of growth and then tailor the strategies and approaches needed to capture them. etc. maintaining brand consistency across all channel segments is critical to your long-term success. to the traditional retail environment. Sales channels . Products: Identify which products in your offering are most suited for each segment and create appropriate messaging. Policies: Construct well-defined polices for administering the accounts within this channel. to the web. Channel management help companies form effective selling. we’re just doing whatever we can to get any business from any of them. determine where your upsell opportunities lie. not what your idea of their needs are. tractors. Align sales channels in a multichannel world: Customers are increasingly moving across all channels to get what they want. And. Automobile industry: The Indian automobile Industry consists of five segment: commercial. But is that the most efficient and effective approach.) and then customize a channel management program that includes: Goals: Define the specific goals you have for each channel segment. etc. 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. Still. Channel management take a fine-grained view by geography. from direct. Channel management. vehicles.being the conduits by which we distribute our products to the end-user come in many shape. A number of the domestic companies produce to the automobile 3|Page . two-wheeler. Also. Sales/Marketing Programs: Design support programs for your channel that meet their needs. first segment your channels by like characteristics (their needs. and passenger cars. as a process by which a company creates formalized programs for selling and servicing customers within a specific channel. multi utility vehicles. To get started. can really impact your business—and in a positive way. while gaining efficiency at the same time. Some of them demand increased services for certain transactions while others prefer low-touch. success factors. Few companies really comprehend channel management in a way that really helps them. in defining policies for account set up. That’s where Channel Management comes in. 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.
besides moderate share of financed purchases. In an environment where the northward movement of inflation. Even as the scooters segment continued to post 20% year on year expansion. The growth has been supported by various structural positives associated with the domestic two wheeler industry including favourable demographic profile. De-licensing in 1991 has put the Indian automobile industry on a new growth track. under developed public transport system. moderate two wheeler penetration levels (in relation to several other emerging markets). The other reason is to be attracting global auto manufacture to Indian are the country's large class population.0% year on year. strong technology capability and availability of trained manpower at competitive price. 2011-12. the pace of growth during the last quarter was at its lowest gear in the last three years. Indian two wheeler industry: The Indian two-wheeler industry recorded sales volumes of 3. The deceleration in growth was contributed mainly by the motorcycles segment which grew at a much lower rate of 9. growing earning power. the two wheeler industry has been the most resilient reflected in its healthy volume growth of 15. fuel prices and interest rates has been the nemesis of the Indian automobile industry at large.industry in India and growing presence of multinational investment to has increase in overall growth. attracting foreign auto gains to setup the production facilities in the country to take advantage of various benefits its offers. 2011121. Although the year on year volume growth of the industry remained in double digits. This took that Indian automobile production from the 5.2% year on year in Q3. growing urbanization and expected strong replacement demand.4 million units in Q3. 4|Page . a growth of 11. 2011-122 due to base effect.3 million units in the 2001-02 to 10.8 million units in 2007-08.0% year on year . Overall. 2011-12. 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.
with Honda Motorcycles reclaiming its spot as the third largest player.0% 27.0% Q3 9.4% in 9m. In the >125cc segment of motorcycles.4% 30.125 6.8% 92.462.5% of the industry’s volumes in Q3. 2011-12.102.6% 11.478 520.3% 73.983 30. 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 . 2011-12 (70.073.0% 28.0% 17.836 13.9% 22.019. 2011-12 (92.797 564.472 27.480.4% -44.0% 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 1.4% 13.2% 34.796 474.312 6.949 1.1% in 9m. Yamaha has been the fastest growing having improved its market share from 8.143 532.305 3.464.8% 23.401.122 9.6% 16.240 11.976 492. With this.0% 188. 5|Page .0% 17.140.0% 24.402.6% 31.534 2. 201112.2% in 9m.672 3. 2011-12).539. while Bajaj Auto continues to account for nearly half the segment’s volumes (49.155 192. the contribution of the >125 cc segment to the total motorcycles segment increased from 26% in 2009-10 to 29% in 9m.418 2.090 23.1% in 9m.859 3.2% 21.187.582 448.867 190.584 697.2% YoY in Q3.295 482.7% 88.897 26.529 Q2 2. 2010-11 to 10.408 24. 2009-10.7% -5. 2010-11).3% 21.0% 7.0% Q1 15. the >125cc segment of motorcycles grew much faster than the 75-125cc segment.696 3.782 25.1% in 9m. Hero MotoCorp continues to be a strong market leader with a share of 74.682 Q1 2.0% in 2007-08). 2011-12).643 186.5% 25.556. In the 75-125cc segment of motorcycles (that represented 71% of total motorcycles sales volumes in 9m.8% 35.5% 159. 2011-12 and as has been the trend over the last several quarters.5% 1.5% 34.566 20.6% -8.515 650.008 1.461 504.905 52.6% 2.978 1.0% 21.558.4% 29.1% 100.590 Sales Volumes Analysis – Motorcycles: The domestic motorcycles segment recorded a volume growth of 9.3% Q2 9.341.5% 13.090 1.8% 17.950 2.9% 41.9% 659.368.790. a position which it had lost out to TVS in the previous quarter after having retained it since Q4. The top three players accounted for 89.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.
201112 from 17.7% in Q3.6%. 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.Sales volume analysis of scooters: Barring Q1. The joint venture between India's Hero Group and Honda Motor Company. As Brijmohan Lall Munjal. and it's our responsibility now to take the industry to the next level. Hero Honda is constantly working towards consolidating its position in the market place. TVS and Yamaha over the short to medium could imply shrinkage of market share gap between the market leader and others over time. 2011-12 too. the company began commercial production at its new plant at Tapukara (Rajasthan) in July 2011.Forget it' campaign captured the imagination of commuters across India. The company believes that changing demographic profile of India. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission.6% in 2010-11. Hero Honda has a large sales and service network with over 3. However. Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. In Q3.000 units recorded a growth of 21. Market Share Trends: Overall. the sales volumes of the domestic scooters segment at 660. higher than the 9. the share of the scooters segment in the total domestic two-wheeler volumes increased to 19.4% in Q3. 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. We'll do all it takes to reach there.2% growth in motorcycle sales.Shut it . This has allowed the company to consolidate its market position over the last two quarters. With this. partly due to the former’s smaller base. increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. During the 80s. A legendary 'Fill it . 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.000 dealerships and service points across India. "We pioneered India's motorcycle industry. 6|Page . 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. Hero Honda Motors succinctly points out. 2011-12. Hero Honda has a customer loyalty program since 2000. called the Hero Honda Passport Program. This would provide the growth ballast that would sustain Hero Honda in the years to come. While capacity shortfall at the company’s plant at Manesar (Haryana) had restricted its volume growth in the recent past. 2011-12. the growth in scooter segment’s sales volumes has generally outperformed that of the motorcycles segment. the Chairman.
resourcefulness and determination to succeed which are characteristic of the group today. Hero Motocorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. the company has 4 plants . and is the flagship company of the USD 4 billion TVS Group. Bajaj Auto. Rahul Bajaj. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world.wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America. home appliances. was a close confidant and disciple of Mahatma Gandhi. company's new identity.. then 27.72 million to INR. The company will provide an engaging environment for its people to perform to their true potential. Kamalnayan Bajaj. Under his leadership. Jamnalal Bajaj. Founded in 1926. with annual turnover of more than USD 1 billion in 2008-2009. He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. Gandhiji had adopted him as his son. but also diversified into various manufacturing activities. dedication. TVS motors: The TVS Group is one of India's largest industrial conglomerates. In fact. insurance. founder of the group. powered by its bikes. He too was close to Gandhiji and it was only after Independence in 1947. is the parent and holding company of the TVS Group.The story of Hero Honda began with a simple vision . established in 1911. its product portfolio has expanded and the brand has found a global market. setting benchmarks in technology. is ranked as the world's fourth largest two. His son. 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. travel and finance. 7|Page . took charge of the business in 1965. The group's flagship company. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. The present Chairman of the group. spanning automobiles (two-wheelers and three-wheelers). iron and steel. in Himachal Pradesh. lighting. that he was able to give his full attention to the business. Africa. The integrity. the group has an illustrious history. Hero MotoCorp Ltd. South and South East Asia. With a workforce of over 5000. It will continue its focus on value creation and enduring relationships with its partners. Its footprint stretches over a wide range of industries. the turnover of the Bajaj Auto the flagship company has gone up from INR. at the height of India's movement for independence from the British. Kamalnayan Bajaj not only consolidated the group.the vision of a mobile and an empowered India. 120 billion. Bajaj auto: The Bajaj Group is amongst the top 10 business houses in India. styling and quality so that it converts its customers into its brand advocates. took over the reins of business in 1942.and three. TV Sundram Iyengar and Sons Limited. Middle East. are often traced back to its birth during those days of relentless devotion to a common cause.located at Hosur and Mysore in South India.
. It represents premier automotive companies like Ashok Leyland. TVS and Sons also distribute Heavy Duty Commercial Vehicles. It also distributes automotive spare parts for several leading manufacturers. Segment of motorcycles in automobile: 1-Economy segment: 2-Executive segment 8|Page .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. Fiat and Honda. The company has a production capacity of 300 thousand units a year. It has also diversified into distributing Garage equipment that ranges from paint booths to engine analyzers and industrial equipment products. Jeeps and Cars. Mahindra and Mahindra Ltd.
3-Premium segment: 9|Page .
com www.in/index.com www.in 10 | P a g e .com/en-in/ www.mckinsey.tvsmotor.heromotocorp.blogspot.References: www.gtms-inc.asp www.management-punditz.com/ www.bajajauto.
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