NAME ²RAMESH PATEL

CLASS - S.Y.B.M.S. ² ¶B·

ROLL NO. ² 2347

SUBJECT ² Marketing Management

TOPIC ² BIRLA TYRES

GUIDED BY ² Prof. Prerna Sharma

 ACKNOWLEDGEMENT

The project of such magnitude cannot be accomplished without

theassistance and co-operation of several people. Exchange of ideas
generatesa new object to work in a better way. So, whenever a person is
helped andco-operation by others, his heart is bound to pay gratitude and is
not merelyformalities but an expression of deep sense of
o f gratitude and
cumulativeappreciation.Now
cumulativeappreciation.Now first and foremost, I feel highly obliged to

Mr. R. K. Sharma, DistrictManager:

BIRLA Tyres Ltd.

Ltd. who got me placed for project
project training, which had sent
materials, according to my topic for execution in order to perform the work for
preparing this dissertation.I would like to mention something special about my
supervisor

Mrs. Prerna sharma , pillais College of Business

Business Management,panvel,
Management,panvel, and
making acknowledgement that without his kind co-operation, attention, wise
guidance and a regular feedback from me, my mission would not have been
fulfilled its milestone. I have not the desired word power to express my
heartiest gratitude regards reverence
reverence and indebtness to him. I also
a lso
acknowledge with a deep sense of reverence, my gratitude towards of my
parents and member of my family, who has always supported me morally as
well as economically.
 PREFACE

As it is said ............"The
... ........."The theory without practice is lame and practice without theory is
blind." obviously the theory and practice are two facts
f acts of same coin,or in other way theory
and practices complementary and supplementary to each other. And of course these two
embody the real knowledge based on the principle of coming by doing or in pursuit of 
knowledge these two have become part and parcel. Here, the practical during summer
vacation is of prime to th e Faculty of Management for the purpose of evolution of final
(4rthSemester) examination assist the paper in order to complete in M.B.A. course of the
academic curriculum.This dissertation imparts a deductive and prescriptive discussion on
the duly * on Sales Promotion (with reference to BIRLA Tyres Ltd. Marketing
division,Muzaffarpur) in comprehensible and concise way............ on the basis of the
training, which was done by me in marketing division of BIRLA Tyres Ltd.,Muzaffarpur.
Ltd.,Muzaffarpur. The
report has been written for main of marketing as well as the consumer, Marketing is the
th e
lifeblood of any organization to run fast.
f ast. Somarketing starts right from the time of 
production. Marketing is nothing but firstto assess the market and then to access the
market. The
The present
present study is entitled to the study
study on Sales Promotion
Promotion of BIRLA Tyres have
been determined.The whole
whole study has been done to a particular
p articular area i.e.
Muzaffarpur.Simplicity is the main feature of this report from beginning to end so that
evena non-marketing man can take advantage of it. My observation in BIRLA Tyres Ltd. was
to treat main, who are the main Factor
F actor of Production among man, machine, materials,
money manufacturing technology with respect and dignity.
 Executive Summary
In todays world of intense competition and rapid dynamism, all the companies worldwide
are tuning their focuses on the customer. Suddenly, the customer had succeeded in
capturing all the attention of the companies towards him, so much so, that the once famous
maxim, customer is the god has become so true and relevant today. There has been a
paradigm shift in the thinking of these companies and none o ther then the customer has
brought this about. Earlier there was a sellers market, since goods and services were in
short supply and the sellers use to call the shots. But, ever since the advent of the era of 
globalization, there has been total transformation in the way the customers being
perceived. Their focus has shifted towards integrating the three elements people, service
and marketing. A customers can make or break a company. It is the responsibility of every
company to see that all its customers are equally satisfied with them, for one single
dissatisfied customer will tell at least nine others about the dissatisfaction and will
spark off a chain reaction and spell doom for that company. Research has thrown light on
some important aspects of customers retention it has been proved empirically that
acquiring new customers can cost five times more than the cost involved in satisfying and
retaining current customers .In the past, the customers was taken for a ride, as there were
not many players in the fields, not much importance was attached to product safety,
quality, service and product appeal. The attitude of the manufacture was that of caveat 
emptor. Thanks to the government policies on liberalization, globalization and privatization
(LPG), the market scenario has changed today. Today, the customer has a hos t of defense
mechanism like the customers protection laws, regulation of the government, the powerful
hands of the organization, customers courts, switching to substitute or co mpetitors that
offer at competitive prices, etc. The maxim, caveat  emptor has been replaced by caveat
venditor
S. No. Particulars Pg. No.

1. Introduction to the Industry

2. Introduction to the Organization

3. Research Methodology

3.1 Objective of Study

3.2 Type of Research

3.3 Sample Size &

method of selecting sample

3.4 Scope of Study

3.5 Limitation of Study

4. Facts and Findings

5. Analysis and Interpretation

6. SWOT

7. Conclusion

8. Recommendations &Suggestion

10. Bibliography
 INTRODUCTION TO THE INDUSTRY

The brand, and "branding" and brand equity have become increasinglyimportant
components of culture and the economy, now being described as"cultural accessories and
personal philosophies".In non-commercial contexts, the marketing of entities which supply
ideas or promises rather than product and services (e.g. political parties or
religiousorganizations) may also be known as "branding".ConceptsSome marketers
distinguish the psychological aspect of a brand from theexperiential aspect. The experiential
aspect consists of the sum of all points of contact with the brand and is known as the

brand experience

. The psychological aspect, sometimes referred to as the

brand image

, is asymbolic construct created within the minds of people and consists of all the in
formation and expectations associated with a product or service. Marketers engaged in
branding seek to develop or align the expectations behind the brand experience (see also
brand promise), creating the impression that a brand associated with a product or service
has certain qualities or characteristics that make it special or unique. A brand is there
foreone of the most valuable elements in an advertising theme, as it demonstrates what the
brand owner is able to offer i n the marketplace. The art of creating and maintaining a brand
is called brand management. This approach works not only for consumer goods B2C
(Business-to-Consumer), but also for B2B(Business-to-Business), see Philip Kotler &
Waldemar Pfoertsch.A brand which is widely known in the marketplace acquires

Brand recognition

. When brand recognition builds up to a point where a brand enjoys a critical mass of 
positive sentiment in the marketplace, it is said to have achieved

brand franchise

. One goal in brand recognition is the identification of a brand without the name of the
company present. For example, Disney has been successful at branding with their par ticular
script

font (originally created for Walt Disney's "signature" logo), which it used in the logo.
Consumers may look on branding as an important value added aspect of products or
services, as it often serves to denote a certain attractive quality or characteristic (see also
brand promise). From the perspective of brand owners, branded products or s ervices also
command higher prices. Where two products resemble each other, but one of the products
has no associated branding (such as a generic, store-branded product), people may often
perceived. Their focus has shifted towards integrating the three elements people, service
and marketing.A customers can make or break a company. It is the responsibility of every
company to see that all its customers are equally satisfied with them,
for one single dissatisfied customer will tell at l east nine others about thedissatisfaction and
will spark off a chain reaction and spell doom for that company. Research has thrown light
on some important aspects
of customers retention it has been proved empirically that acquiring newcustomers can
cost five times more than the cost involved in satisfying and retaining current customers. In
the past, the customers was taken for a ride, as there were not many players in the fields,
not much importance was attached to product safety, quality, service and product app eal.
The attitude of the manufacture was that of caveat  emptor. Thanks to the government
policies on liberalization, globalization and privatization (LPG), the market scenario has
changed today .Today, the customer has a host of defense mechanism like the
customersprotection laws, regulation of the government, the powerful hands of theorganiza
tion, customers courts, switching to substitute or competitors that offer at competitive
prices, etc. The maxim, caveat  emptor has been replaced by caveat venditor.

About Tyre industries in India

Background

The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set
up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian
tyre industry has grown rapidly.

Transportation industry and tyre industry go hand in hand as the two are interdependent.
Transportation industry has experienced 10% growth rate year after year with an absolute
level of 870 billion ton freight. With an extensive road network of 3.2 million km, road
accounts for over 85% of all freight movement in India.

Key Issues of tyre industries High tax usage

The high tax content on tyres can be gauged from the fact that the percentage of total tax to
the tax excluded price for various categories of tyres is - 44% for Truck Tyre; 41% for
Passenger Car Radial Tyre, 35% for Tractor Rear Tyreand 76% for Truck Tyre

Increase in raw material costs

Apart from being capital intensive, the tyre industry is highly raw material intensive. Any
change in the prices of raw materials affects the profitability of tyre companies. The raw
materials used in the manufacture of tyres are rubber and petroleum derivatives like nylon
tyre cord, carbon black, styrenebutadiene rubber and poly butadiene rubber. The most
important raw material is rubber-natural and synthetic. Natural rubber (NR), with 29%
weightage in the cost of raw materials used by tyre industry, is the highest cost item. Annual
consumption of NR by tyre industry is 3.50 lakh tonnes, valued at Rs.14 billion. Over 85%
of NR consumed' by the industry is procured domestically. 15% is imported.

Import of tyres

During the FY2002, over 1,10,000 passenger car tyres were imported. Although this
constitutes a small percentage (1.5%) of total p assenger car

tyre production in the country, since total imports a re of radial passenger car tyres, the
percentage is higher when compared against domestic production of radial passenger car
tyres. A large percentage of imports are from SouthKorea at a concessional rate of customs
duty (i.e. 15%) under the Bangkok Agreement - as against 20% normal rate of customs
duty .Even though the Government has imposed a restraint on the import of used tyres into
India, occasionally there are reports of import of such tyres in aclandestine manner,
sometimes as new tyre at low value, since there is no restriction on import of new tyres or
as tyres under the "others" category.Many countries such as Japan, Bangladesh, Pakistan,
Philippines, Thailand, Kenya, South Korea, etc. have either put a complete ban on import of 
used tyres or have placed stringent conditions on such imports.

Tyre Exports

The product focus of tyre exports from India has been Traditional Truck Tyres. Globally this
segment of tyre export is shrinking due to greater acceptance of radial tyres. Over the years,
China has emerged as a major exporter in bias tyre category. Additionally, export of Indian
tyres to select countries is subjected to non-tariff barriers (NTBs) by way of standards, tests,
etc. Export of cheaper tyres from China to major tyre importing markets, like US, is
adversely affecting Indian tyre exports to these markets. India's share in exports to these
countries (especially USA) is progressively declining. If the trend is not reversed, Indian tyre
industry will find it extremely difficult to regain its erstwhile position in these markets. Low
rate of interest, cheaper electricity tariff, hidden subsidies by the Chinese Government,
better infrastructure facilities and lower transaction costs are factors favourable to Chinese
tyre industry.
Trends in Production, Consumption, Price & Capacity Utilization

The total tyre produced in the country was 51.58 million units in FY2003 - a19% growth rate
over FY2002.

CAGR of tyre production (in %)

FY 1993-2003 9%

FY 1993-1998 7%

FY 1999-2003 9%

FY 2002-2003 19%

Compiled by INGRES

Currently, the size of the Indian tyre industry is estimated at Rs. 128 billion(0.5% of Indian
GDP), as of FY2003. The total installed capacity of the Indian tyre industry is around 60.5 mn
units, and the capacity utilization is around85%. Additionally, in FY2003, the price realization
of tyre manufacturers also registered an increase by 8%, as against a 0.6% increase in
FY2002.

Demand Supply Gap

The demand for tyres is either in the domestic market or in the export market. As far as
domestic demand is concerned, the OEM and the replacement segments are likely to
witness strong growth given the current performance
of the automotive sector. Given the strong linkages of tyre industry withautomotives, its
demand is likely to be strong over the short to medium term. As regards supply of tyres,
currently, the major players are in the process of expanding their capacities, in anticipation
of uptrend in sales. For instance, Apollo Tyres has set up a joint venture with Michelin for
manufacture and sale of bus and truck radials. JK is expanding its Mysore truck and bus
radial facility along with eyeing acquisitions of smaller units. Ceat has increased its offtake
by 3 times from Pirelli. However, a characteristic of the Indian tyre industry is that most of 
the tyre manufacturers in the past had increased capacities in anticipation of a surge in
demand, but when it did not materialise, they reduced their addition to capacities. Thus, the
demand-supply gap is likely to be an important issue for the Indian tyre industry over the
short to medium term.
1975Inception

1975Registered as a company

1977First plant commissioned in Perambra (Cochin, Kerala)

1991Second plant commissioned in Limda (Baroda, Gujarat )

1995Acquired Premier Tyres in Kalamassery (Cochin, Kerala)

1996Exclusive tubes plant commissioned in Ranjangaon (Pune,Maharashtra)

2000Exclusive radial capacity established in Limda

2000Established BIRLA Tyres Health Care Clinic for HIV-AID S awareness and prevention in
Sanjay Gandhi Transport Nagar, Delhi

2003Expansion of passenger car radial capacity to 6,600 tyres/day

2004Production of India 's first H-speed rated tubeless passenger car radialtyres

2004Support in setting up India 's first Emergency Medical Service inBaroda , Gujarat

2005BIRLA Tyres Health Care Clinics in Udaipur in Rajasthan and Kanpur in Uttar Pradesh

2006Expansion of passenger car radial capacity to 10,000 tyres/day2006Expansion of 

passenger car range to include 4x4 and all-terrain tyres

2006Acquired Dunlop Tyres International in South Africa and Zimbabwe

2006Opening of BIRLA Tyres Health Care Clinic in Ukkadam, Tamil Nadu

2006Launch of DuraTread, treading material and solutions

2006Launch of India's first range of ultra-high performance V and W-speedrated tyres

2007Launch of Regal truck and bus radial tyres

2007Launch of DuraTyre, retreaded tyres from BIRLA

2007Launch of the BIRLA Tennis Initiative and Mission 2018

The Future

At BIRLA Tyres, they believe in being in control of their destiny. They set ambitious targets
and believe in stretching themselves to outperform them.
Therefore, the leadership position in the Indian market notwithstanding,BIRLA is now set to
look overseas for new challenges. Nearly all initiativesbeing taken at this point in time are
geared to fuel this ambition.

At home and abroad, BIRLA is l ooking to not only consolidate its leadershipposition in
various segments through newer, high technology products butalso through consistent
organic and inorganic growth opportunities, in tyresand allied products. Becoming a l eader
in the passenger car tyre segment is apriority as is the export of passenger car radials. If the
company continues to grow at the current pace, BIRLA expected to reach the US$1 billion
mark in less than five years. Continuous focus on cost control and operating
efficiencyremains the hallmark of the company.

Adding to all this is the fact that radialisation in India is throwing up fresh opportunities, as
is the boom in road infrastructure and the completion of the Golden Quadrilateral and the
North-South-East-West corridor. Therefore thefuture is optimistic with promises of a
virtuous cycle of growth.

BIRLA has three Tyre manufacturing facilities and one unit for the productionof tubes and
flaps in four locations based in W est and South India. BIRLAEndeavour has been to have the
widest spread of sales and regional offices,along with stock points at locations which allow
for maximum customer reachand efficient supply chain management. BIRLA dealer or
business partnersare also chosen with great care. BIRLA's products are sold through
acombination of outlets ranging from exclusive dealerships to multi-brand andbranded
retail outlet The continuous up gradation of dealer knowledge is inBIRLA's i nterest and
therefore their training is undertaken by the company.With a dedicated field sales, technical
and commercial force of 600, we feel that we are best positioned to meet the customer
specific needs.

Research and Development for B IRLA Tyres

The state-of-the-art Research & Development Centre had its birth at Perambra, Cochin
and later on, it has grown to a substantial height and stature at its present location at Limda,
Baroda. From the hour of inception, its goal has been to foster development and
promote the evolution of newtechnologies in the field of Tyre Science & Technology.
Recently companyhas tie ups with IIT's & IIM's for Rubber Technologies.

All the activities of the centre are extensively supported by a series of highlysophisticated
equipment,which help the research scientists develop products as per customers' specific
requirements.
We have the facilities and expertise for:

Development of compounds for improved performance

Raw material development

Analytical research

Reverse engineering

Advanced design using CAD

FEA modeling of tyres

Simulation testing of the designed product

Product validity & reliability studies

The different activities of the centre are being executed by a pool of specialists from the
arena of Polymer Science, Rubber Technology, Inorganic& Organic Chemistry, Textile
Technology, Physics and Mathematics. Through a synergistic blend of knowledge,
experience and hard work, this multidisciplinary team of scientist devoted to lead the
organisation towards an outstanding level of success. Currently, the centre is aiming for
further growth and is exploring unchartered areas of research in the field of Tyre
Technology that will provide BIRLA Tyres the edge in today's ultra-competitive global market
scenario. The brand name is often used interchangeably with "brand",although it is more
correctly used to specifically denote written or spoken linguistic elements of a brand. In this
context a "brand name" constitutes atype of trademark, if the brand name exclusively
identifies the brand owner as the commercial source of products or services. A brand owner
may seek to protect proprietary rights in relation to a brand name through trademark
registration. Advertising spokespersons have also become part of some brands, for example:
Mr. Whipple of Charmin toilet tissue and Tony the Tiger of Kellogg's.
The marketing strategies and operations are closely observed for all theseinformation I
visited retailers dealers and as well as consumers to assess thepresent market situation of 
the product of BIRLA TYRES LTD.

3.6Limitation of the Study

In Summer Project this study has some limitations when I joined the co mpanythat time DM
was too much busy with his own assignments as it was theperiod where market was
witnessing a lot dynamic changes like :-

(i)Unusual price increase like 8-10% in last 3 months.

(ii) All of a sudden under load restriction was imposed by the Govt. of Bih ar e.g. Golden Card
(which was a govt. authorized taken for overload) was withdrawn for transporters.

Under these circumstances or critical situations I face diffi culties which mayaffect my report
directly or indirectly.
 4. FACTS AND FINDING

Findings

After taking the feedback of more than 100 customers & analyzing 2156 tires the study
reveals that customers are fond of different brands in different areas. Like, in Puranichhavni
area almost 60% of customers prefer BIRLA tires (especially BT339),in hanuman areas
customers prefer Birla tyres, where in Transport Nagar people prefer JK & APOLLO. Not only
different choices but also having different experience on different brands. It is found
that many customers prefer JKsguaranteed tyres such as JET TRAK 39 and economy
class rib tyre VIKRANTTRACK KING for its milage & reliability but it is also true that many
other brands such as JET MILES, JET ACE, JET SUPER LUG do not have a strong place in
customers mind. The study shows that JKs strong contender is CEAT whos quality was
appreciated by many. CEATs FM 78 & HCL SUPER are very much preferred. In
guaranteed tyres APOLLOs FM78 is the main contender of JK.Incase of normal loaded
trucks customers mostly rely on CEAT but in over load AP OLLO & JK are reliable. Certainly
MRF has not a good reputation at all. Also for LUG & Semi Lug segment Chinese tyres such
as YELLO SEA & CROSS are also grabbing a strong foothold in the market.

1. Birla is the market leader followed by APOLLO.

2. VIKRANT TRACK KING of JK is most used/preferred tyre overall

3. In economy segment JK has Strong hold but premium segment is dominatedby CEAT.

4. JK Tyre is having edge breaking problem

We are manufacturers and exporters of Automotive Tyres, Tubes & Flaps.Various types of 
tyres available is given here :, out of which 5 countries, we are market leaders
5 . DATA ANALYSIS AND INTERPRETATION

Due to rapid changes in Technology, Competitor and Consumer preferencesa company can
not to stick solely with its existing products and services. Customers want the new and
improved product that comes about competitor. A company may obtain new product
development in company's own research and development. To serve this purpose "BIRLA
Tyres" has Research and development department which develops new products as per the
demand of the market. To improvise this products or services they collects infor mation from
the research person about their competitors products.

BIRLA Tyres is the largest tyre manufacturing company in India. It provides good tyres to
their customers.
 7.Conclusion

After conducting six weeks survey at Muzaffarpur I have reached these conclusion.

BIRLA tyre is the market leader in the LCV&SCV segment followed By MRF, J.K., Birls, Ceat.

BIRLA Tyres brand XT-7 and A mar are market leader at Muzaffarpur Urban and Rural Area.

XT-7 is Lug tyres and Amar RIB tyres, Most of the customers are satisfied with the
performance of both tyres.

Appox 70% customers have positive and 30% customers have negative attitude in
support of preference of BIRLA tyre at Muzaffarpur.

Customer's awareness level is better at Muzaffarpur area.

BIRLA tyres is the first tyre company which has launched new schemeto solve the claim
within 2 days.

Most of the customers are unsatisfied with this scheme. Because dealers do not provide
them this type of facility at their disposal.
 8.. Recommendation and suggestion

The suggestions from the consumers to the tyre company are following

Some consumer are unsatisfied with the price because competitors product price are l ess
than BIRLA, So company should pay attention in their mind on price.

Company should provide more mileage of tyres because overloading has been imposed by
the government.

Company should provide credit facility because customer demands this type of facili ty.

The problem of BIRLA consumers are lack of adequate promotional schemes. Dealers don't
provide adequate information in the support of the BIRLA br ands. They see their margin of 
profit alone.

Some schemes should be provided by company. It is good technique for sales promotions.

Company should give special attention after sales service of their customers.
BIBLIOGRAFHY

WWW.WIKIPEDIA.COM

WWW.BIRLATYRE.COM

WWW.GOOGLE.COM