A STUDY ON EFFECTIVENESS OF SALES PROMOTION

APPARATUS BY JK TYRES

Submitted by
Ms. S. SHAMLIN (9918115031)
Under the Supervision of

Dr. K. RAVINDRAN
Assistant Professor
Kalasalingam Business
School
Department of Business Administration

In partial fulfillment of the award of the Degree

Of

MASTER OF BUSINESS ADMINISTRATION

In

Kalasalingam Business School

Department of Business Administration
Kalasalingam Academy of Research & Education (KARE)

May- 2020

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 Kalasalingam Business School
Department of Business Administration
Kalasalingam Academy of Research & Education (KARE)
Bonafide Certificate

This to certified that Project work report is the bonafide work of Ms. S. SHAMLIN (9918115031)
who carried out work in JK TYRES and prepared report under my supervision.

Signature of Supervisor Signature of HOD

Dr. K. RAVINDRAN Dr. R.VIJI
ASST. PROFESSOR DEPUTY DEAN/ HOD
Department of Business Administration Department of Business Administration

Date of Viva-Voce:

Internal Examiner External Examiner

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 DECLARATION
I hereby declare that in project work report, submitted for the Degree of Master of
Business Administration in Department of Business Administration, Kalasalingam Business
School, Kalasalingam Academy of Research and Education carried out by undersigned is the
original work for the award of degree.

S.SHAMLIN

Date:

Place:

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 ACKNOWLEDGEMENT

“Gratitude is a golden opportunity to knowledge’’

I convey my sincere and heartfelt gratitude our Dr. K. Sridharan chancellor,

Dr. S. Shasi Anand, vice president, Dr. S. Arjun Kalasalingam, Vice President for
giving us opportunity to conduct the external project

I would like to convey gratitude to our Dr.R. Nagaraj, vice chancellor and
Dr.V.Vasudevan, Register for their motivation and providing us moral during the course
of work.

I sincere thank to my grateful guidance and giving the wonderful opportunity to

our Dr. G. Ravindran, Dean - KBS and our Dr. R. Viji, Dy.Dean / HOD to do final
project. It is my duty to express my gratitude to the Dr. K. Ravindran for their valuable
guidance, sustained interest throughout the course of the project and invaluable help
extended towards for the completion of this work successfully.

I thank the organization for permitting me to do project in their concern. I express

my sincere thanks to who gave the information and details that are essential to do my in
project. I thank the almighty for giving me knowledge, confidence and strength to
complete the project successfully.

Finally, I express my heartfelt thanks and gratitude to my family, professors and

friends for their support and encouragement through my entire project.

S.SHAMLIN
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 Chapter Title Page No

Bonafide certificate I

Company certificate II
Declaration III
Acknowledgement IV

Abstract V

Chapter - I 1.0 Introduction

1.1 Introduction
1.2 Sales promotion
1.3 Types of sales promotion
9 – 17
1.4 Sales promotion types chosen for the study
1.5 Importance of the problem
1.6 Statement of the problem
1.7 Objectives of the study
1.8 Limitation of the study
1.9 Research methodology

Chapter - II Review of Literature

18 – 20

3.Overview of the study

Chapter - III 3.1 Industry profile 21– 32

3.2 Company profile

Chapter – IV Data Analysis and Interpretation 33- 58

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Chapter - V Conclusion

59 – 61
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusions

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7
8
 A STUDY ON EFFECTIVENESS OF SALES PROMOTION APPARATUS BY
JK TYRES

CHAPTER-I
INTRODUCTION
1.1. INTRODUCTION

Sales promotion has been used by business people for a very long period of time as an arrow in the
marketer’s quiver, to increase sales. It is a tool to create, expand, and retain the level of demand for a short
term as management of demand is vital for the existence of any business. Sales promotion enables the
business in many ways. It enables the business to fight competition by offering additional value to the
customer and by differentiating the business product from that of competition. Sales promotion helps
business retain customers by delighting them, especially when the sales promotion exceeds the expectation of
the customer and pleasantly surprises the customer. Sales promotion aids the launch of new products by
inducing trial with inexpensive trial packs. Business also benefits by off loading slow moving products by
means of sales promotion. In more recent times, retailers in India have chosen to use sales promotion
schemes as a tool to fight the recession with considerable success.
Today in the era of media hype and advertising craze, the customer is educated, even confused due to
the multiplicity of products. In such a scenario, the retailer acts as a linking pin between the brand
manufacturer and the consumer. But this role of the retailer as an effective linkage depends on the incentive
provided to them as trade promotion schemes, and also, on the impact on their profits of the additional
incentives provided to the customers as sales promotion schemes. Retailers have a critical role to play in the
implementation of sales promotion schemes, as they are the ones to deliver the sales promotion schemes to
the customer.
World over business organizations have started relying more on sales promotion, due to the increased
competition caused by globalization, liberalization and privatization. Business organizations are known to
spend 60% of their promotional budget on sales promotion, which is an indication of the growing importance
of sales promotion. Indian businesses have shown a similar trend of allocating more resources for sales
promotion, to fight increased competition that has been unleashed by twin trends of liberalization and
globalization. It is estimated that Indian businesses spend nearly Rs.5000 crore per annum on Sales
Promotion.
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 Sales promotions are launched by firms with specific objectives in mind and these objectives serve as
the reasons for use of sales promotions. Some of the objectives of using Sales promotions are used to gain
market share by adding new customers to augment business revenues. Sales promotions are meant to expand
the target market or add favorably to the customers product experience. In case of some schemes added value
is delivered to the customers which helps build brand loyalty. Sales promotions may be used defensively to
respond to competitive moves, liquidate excess inventory, raise cash in the short term, or discontinue a
product.

1.2. SALES PROMOTION

Sales promotion along with personal selling, advertising, direct marketing and publicity forms a part
of the promotion mix. The promotion mix is a function of marketing that is charged with the responsibility of
communicating persuasively with the target market. Promotion mix as a means of persuasive communication
seeks to influence the attitudes of the customers or trigger a certain behavioural response. The behavioural
response is normally a purchase, of all the elements in the promotion mix; sales promotion is more oriented
to triggering the purchase.

1.3 TYPES OF SALES PROMOTION

1. PRICE-OFF:
Is the simplest form of sales promotion as it gives a discount on the regular price of the product for a
limited period of time.
2. EXCHANGE OFFER:
This promotion helps the customer get a discount on the purchase of new product on returning an old
product. Exchange offers are mostly offered by the consumer durable products industry. Exchange offers are
a tool to promote sales in saturated/ mature markets by encouraging customers to upgrade to newer versions
of the product that may have more/better features.
3. PREMIUM OR FREE GIFT OFFER:
Provides the incentive of something free to the customer that is different from the product itself .This
free gift is mostly related to the product but at times may be unrelated. When the free gift is related to the
product it is either in the form of a product that is complementary to the product purchased like a toothbrush

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when given free with toothpaste. At times a related product gives free augments and adds to the product
purchased originally, for example if a software upgrade is offered with a printer that upgrades the PC
purchased originally. At times the free product is related to the product sold as the product given free may be
used in the same context as the product purchased, e.g a four burner gas stove when given free with a dish
washer as both the products are used in the context of the kitchen, cooking, eating. When the free product is
unrelated to the product being promoted, the free product may have some relevance to the target market of
the product being promoted, for example Tazzoos are given free along-with products meant for children. At
times a free gift may be used to induce trial of the product being given free, for example a new skin cleanser
may be given free with a cosmetic or a hygiene product, to induce trail of the skin cleanser.

4. SWEEPSTAKE OFFER:
Is essentially a game of chance, where the customers, who purchase the product being promoted, get
a chance to win a highly valued prize, which may be either a trip to exotic destinations or a consumer durable
or an expensive commodity like gold.
5. BUY MORE AND SAVE/GET:
It is a promotion designed to sell larger quantities of the product being promoted. Here the customer is
offered an extra quantity of the product or a discount if the customer purchases a large quantity of the product
being promoted. Bathing soaps exhibit these schemes the most frequently, where a fourth cake of soap is
offered free on the purchase of three cakes of soap. This promotion can also take the form of bundled
products where two related products, like toothpaste and toothbrush, are bundled for a customer to avail a
discount on the price of the products.
6. CONTEST OFFERS:
The contest offer gives a chance to the customers who purchase the product under promotion, to
participate in a game of skill. It may involve the customer filling in a coupon or writing a slogan or writing an
answer. The winners of the game may win durable goods, property or a partially or fully paid vacation. Some
of the promotions mentioned above may have qualifying requirements for the customer like the purchase of a
minimum quantity of the product being promoted.

7. EXTRA PRODUCT OFFERS:

This type of promotion gives some quantity of the product purchased free, along-with the product.
This type of scheme is most conducive for FMCG products and 65% of such promotions are in this product
category. Mostly 20% or more of the product is given free on purchase.

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8. COUPON:
In the western markets this refers to a certificate from the manufacturer that entitles the bearer of the
coupon to a discount.
9. REBATE:
Involves a cash back benefit that is provided by the manufacturer, and thus it can be seen as a
variation of the price-off promotion.
It may be pertinent to mention here that Banerjee S. (2009)" while citing established authors has
written "However, very little discussion has been attributed to classify different promotions. Most
classifications tend to differentiate the promotion types either on the basis of price vs non-price promotion or
on the characteristics of the promotion i.e. cash, goods or services." A penisal of the descriptions of different
types of sales promotion schemes shows that there is a considerable consensus in how the different types of
sales promotions are defined in academic literature.

1.4. SALES PRMOTION TYPES CHOOSEN FOR THE STUDY

1. Price off/ Discount-
A sales promotion scheme which has a discount/lower price . Price off schemes are used to initiate
trail of new products, encourage immediate sales by precipitating customer purchase decision, increase retail
inventory, liquidate retail inventory, retain customers and to respond to competitive moves.
Advantage of price off schemes are that they are flexible, convenient and easy to implement, provide
immediate benefit to customers hence generate a strong customer response, build stock with customers
keeping them away from competition for longer period of time, increase consumer surplus, when offered to
retailers increase display shelf space for the brand, differentiate the brand from competition, generate impulse
purchase decisions, and can be used to block launch of competitive products by stockpiling the retailers and
consumers.

Disadvantages of price off schemes are that they can lead to a promotion war if competition retaliates,
often do not lead to long term gains as sales decrease in the for a period after the duration of the scheme, they
encourage brand switching by customers which makes sales forecasting difficult, dilutes brand equity of the
brand as it changes the perception of the customers regarding the quality of the brand due the lower price. ^
2- Bonus Pack-
Scheme which gives more quantity of the product to the customer at the same price. These schemes
include buy one get one free schemes. Such schemes are used to make the customer use the product for a

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longer period of time, initiate the customers into purchasing larger quantity of the product or to liquidate
excess inventory. Bonus pack schemes have the advantage of converting new customers into regular users
and light users into heavy users. Such promotions differentiate the brand and can enhance brand loyalty as
these may be seen as rewards by loyal customers.The bonus scheme can also be used to block customers by
stockpiling the customers
and retailers.
The disadvantage of bonus pack scheme is that these may not be passed on to the customers as some
unscrupulous retailers may disband the bonus packs and sell them at regular price. The extra quantity of the
product offered distorts the price quality perception of the brand and thus dilutes the brand equity of the
brand being promoted.

3. Free Gift-
Scheme which gives a free gift of another item Free gift schemes are used to initiate trail of new
products, promote sale of a product during off-season, and build loyalty by rewarding loyal customers. Free
gifts differentiate the brand being promoted and free-gifts are normally seen as rewards by customers, careful
choice of free-gift can be used to attract a specific market segment, product related free-gifts can enhance
brand equity and increase product usage, while the cost of the free-gift is less to the company using the free
gift sales promotion the customers attach more value to the free-gift, free-gifts attached to the product can
encourage the retailers to display the product in their shops, containers as free-gifts can act as an reminder
advertisement to the customers, the customers may not mind paying some extra price for the free-gift.
Amongst the disadvantages of the free-gift, bad choice of the free-gift can harm the brand image
and sales of the product, very frequent use of free-gift schemes may also harm the image of the brand
being promoted.

4. Coupon/ Lottery
A coupon/ lottery scheme is one in which the customer gets a chance to participate in a game of
chance or skill, like a coupon, scratch and win, lottery, write a slogan etc. Schemes of this kind generate
excitement and interest in the product, add to brand awareness, help collect customer feedback and generate
multiple purchases from the customer, add new customers and enhance advertisements.

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 Such schemes have the advantage of enhancing the brand image by adding to the awareness of the
brand being promoted, and by associating the prizes with the brand. Coupon/ lottery schemes create synergies
with advertising thus helps advertisements of the brand being promoted by way of coupon/ lottery cut
through the advertising clutter.
The downsides of coupon/ lottery schemes are that they do not induce trial of new products; they
require heavy advertisement expenditure; and may fall foul of legal norms.
These sales promotion schemes have also been used as an analytical framework in study that
examined the perceptions of retailers and consumers of sales promotion activities in toilet soaps. (Kureshi S.
and Vyas P. (2002)

1.5 IMPORTANCE OF THE STUDY:

Most advertising designed to affect demand and preference building effect for a brand over a long
run. On the other hand the role of sales promotion is to elicit an immediate purchase firm a customer. Sales
promotions are used across all consumer goods categories and in the trade market as well. Sales promotion
involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key
element in the promotional programme. The incentive may be a coupon or price reduction, the opportunity to
enter a contest or sweepstake, a money-back refund or rebate, or an extra amount of a product. The incentive
may also be a free sample of the product, given in the hope of generating a future purchase, or a premium that
serves as a reminder of the brand and reinforces its image. Most sales promotion offers attempt to add some
value to the product or service. Sales promotion can also provide an inducement to marketing intermediaries
such as wholesaler and retailer.
Sales promotion is essentially an acceleration tool, designed to speed the selling process and
maximize sales volume. By providing an extra incentive, sales promotion techniques can motivate consumers
to buy a larger quantity of a brand or shorten the purchase cycle of the trade or consumers by encouraging
them to make more immediate action. Moreover, sales promotion activities can be targeted to different
parties in the marketing channel. Sales promotion can be broken in to major categories: consumer oriented
sales force oriented and trade or business oriented promotions. In this study the researcher is going to analyze
the effectiveness of sales promotion methods in JK Tyres.

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1.6 STATEMENT OF THE PROBLEM.
The major problem addressed was the low amount of money invested by the company sales promotion that
always result to low sales, turnover was addressed due to the that fact huge amount of money was invested
and their sales turnover becomes high which gave them the edge to become market leader in the tyre
industry in The firm.
Sales promotion is essential in every company or business organization that want to achieve it stated or set
objectives. The researcher identifies the following problems. The improper research carried out on sales
promotional activity on how it influence consumer purchases has result to low increase sales of JK tyres
product. The difficulty in convincing consumers to believe in the fantastic star prices of sales promotion has
affected the sales volume of JK tyres product. The improper use of different sales promotional tools to
promote their products has resulted to low profitability.

1.7 OBJECTIVES OF THE STUDY

 To study sales promotion activities carried out by JK tyres
 To find out responses of customers towards sales promotional activities carried out for JK tyres
 To examine widely accepted sales promotional activity by customers of JK tyres
 To provide the possible suggestion for improving the level of sales promotion activities for JK tyres.

1.8 LIMITATION OF THE STUDY

 The sampling survey area is limited
 The survey is conducted within the limited period
 Findings of the survey will based on the assumptions that the respondents will provide
 Some of the questionnaires may not be filled with care and accuracy by the customers.

1.9 RESEARCH METHODOLOGY:

Research refers to a search of knowledge and it is the process of finding solution to a problem after a
thorough study and analysis of the situational factors, it is essential to make use of the information so
collected and draw appropriate conclusions. The marketing research is done in systematic process.

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1.9.1 RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure.
 A well structured questionnaire is framed.
 Data is collected from the consumers of the JK tyres
 Findings are made and necessary suggestions and recommendations are given.

1.9.2 DATA SOURCES

There are two types of data collection namely primary data collection and secondary data collection.
PRIMARY DATA
The primary data is defined as the data, which is collected for the first time and fresh in nature, and
happen to be original in character through field survey.
SECONDARY DATA
The secondary data are those which have already been collected by someone else and have been
passed through statistical process.

1.9.3 DATA COLLECTION METHOD

The data collection method used in this research is questionnaire method. Here the data are
systematically recorded from the respondents.

1.9.4 RESEARCH TOOL

A structured questionnaire has been prepared to get the relevant information from the respondents.
The questionnaire consists of a variety of questions presented to the respondents for their despondence.

1.9.5 SAMPLING

Sampling is that part of statistical practice concerned with the selection of individual observations
intended to yield some knowledge about a population of concern, especially for the purposes of statistical
inference. Each observation measures one or more properties (weight, location, etc.) of an observable entity
enumerated to distinguish objects or individuals. Survey weights often need to be applied to the data to adjust
for the sample design. Results from probability theory and statistical theory are employed to guide practice.

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1.9.6 SAMPLE UNIT
 The customers of the JK Tyres are the sample unit in the survey.

1.9.7 SAMPLE SIZE

The sample size chosen for this study is 100 respondents

1.9.8 SAMPLING METHOD

Sampling methods are classified as either probability or nonprobability. In probability samples, each
member of the population has a known non-zero probability of being selected. Probability methods include
random sampling, systematic sampling, and stratified sampling. In nonprobability sampling, members are
selected from the population in some nonrandom manner. These include convenience sampling, judgment
sampling, quota sampling, and snowball sampling. The advantage of probability sampling is that sampling
error can be calculated. Sampling error is the degree to which a sample might differ from the population.
When inferring to the population, results are reported plus or minus the sampling error. In nonprobability
sampling, the degree to which the sample differs from the population remains unknown.
In this research, the sampling methods used is Simple Random Sampling

1.9.9 DATA ANALYSIS

The data is collected through questionnaire and this is processed by editing and classifying it is then
coded and tabulated in percentages for further analysis these collected data is tabulated in the form
percentage of respondents and the number of respondents opted for various attributes the collected data is
presented through charts and graphs there are further analyzed for every question.
The results were further interpreted through combining the observed knowledge and the respondents
result through the graphs to provide a clearer understanding of the effectiveness of after sales service.
Inferences were then drawn and suitable suggestions were given.

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 CHAPTER-II
REVIEW OF LITERATURE

This chapter presents the publications that were reviewed for this thesis. The theme of the research
papers covered in the chapter is sales promotion. Both consumer promotions and trade promotions have been
studied given the scope of the study. The sales promotion schemes initiated by the retailers for the customers
were also included within the ambit of the review conducted.

2.1 REVIEW OF RELATED LITERATURE

The section deals with the review of related literature and presents the key elements of some of the
pertinent research works related to theme of the study, i.e. sales promotions. The research publications
reviewed for the purpose of this study are given below.
Park M. and Lennon S. J. (2019) conducted an experimental study to understand
the impact of brand name and sales promotion on consumers' perceived value, store image, and purchase
intention in an online store. It was found that while the brand name positively influenced online stores image,
sales promotion had a positive effect on perceived value. The study also found a positive relationship
between perceived value, store image and purchase intentions, thus indication synergistic effects between
branding of products and sales promotion in the context of online retailing of apparel.
Rani L., (2018) examined the response of consumers to stock-out situations in unorganized retail
outlets in Varanasi. The study concluded that eleven of variables related to situation, consumer, product and
store characteristics were related to one of the three behavioural responses of the consumers, thus giving
some insight to retailers regarding how to address the stock out conditions
George I (2017) studied the preference for condoms amongst the retailers in Calicut district. The
study found that trade schemes were provided to retailers by all the condom manufacturers but JK Ansel
provided most trade schemes. The author goes on to suggest that retailers should be provided with more trade
schemes as they play an important role in making the product available and visible.

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 Steenkamp J.E.M., Nijs V.R, Hanssens D.M., and Dekimpe M.G. (2015) examined the issue of
competitive reactions to advertising and promotion campaigns over a four year period in consumer products
category. Most of advertising and promotion attacks were met with a passive response from the competitors.
If there was a response it was in the same form as that of the attack, with advertising being met with
advertising and promotion being met with promotion. It was found that passive reaction was the most
appropriate, accommodating moves in face of attack by way of reduced advertising or promotion in face of
an attack resulted in missing sales opportunities.
Ling S.S., Pysarchik D.T., and Choo H.J. (2014) compared the attitudes and purchase
characteristics of innovators/ early adopters and non-innovators towards new food products in India. They
found that the food innovators/ early adopters in India were more responsive to Sales Promotion. It was
inferred that the innovators/ early adopters for food products in India are more likely to try a new food
product if it is promoted using sales promotion like the free gifts, coupons or samples.

Schultz & Block, 2014 research has indicated that the brand with sales promotion is more likely to
increase the consumers’ preferences and purchasing behaviour than the brand without sales promotion.
Garretson J. A. and Burton S. (2013) explored the differences on economic and shopping related
parameters between consumers who are highly responsive to coupons and sales and consumers who are less
responsive to coupons and sales. They found that consumers who are highly prone to coupons and sales are
attracted by the reduced prices; they enjoy shopping and the sense of achievement that comes to them while
purchasing using coupons or during sales. These customers were found to have an attachment for sales as
other customers have attachment for brands. The marketers have to be alive to the possibility of emotional
hurt such customers when they withdraw or curtail a sales promotion scheme.
Gilbert D.C. and Jackaria N. (2012) examined the response to coupons, price discounts, samples
and 'buy-one-get-one-free'; the most often used four sales promotional schemes by British supermarkets.
They discovered that only those sales promotion schemes, which have a price discount, have a statistically
significant effect on purchase behavior. The managers were thereby guided accordingly in the design of their
sales promotion schemes.

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 Ailawadi K. L., Neslin S. A. and Gedenk K. (2011) studied the correlates of psychographic and
demographic traits with usage of store and national brand promotions. It was found that the demographic
factors of the customers had little relationship with the usage of store brand or national brand promotion as
compared to psychographic factors, which had a considerable relationship with the usage of promotion of
store and national brands. Store brand usage was found to correlate closely with the trait of economic benefits
and costs, while out-of-store promotions usage was driven by traits of hedonic benefits and costs. This
resulted in identification of four segments, the knowledge of which could be used by the manufacturers and
retailers to compete head on or avoid competition. The four segments identified were deal-focused
consumers; store brand-focused consumers, deal and store brand users, and nonusers of both store brands and
deals.
Apart from the monetary sales promotion, Montaner, Chernatony and Buil (2011) have indicated
that gift promotion is more preferable by the consumers than price discount. For example, consumers prefer
to receive gifts that have high equity as the products they have purchased than receiving a price discount.
Added to that, past research has suggested that price reduction is more likely to negatively influence the
consumers’ purchasing intention
(Liao, Shen, & Chu, 2009) Due to this price sensitivity, the consumers are more likely pay more
attention and increase their purchasing behaviour when they notice there is a price reduction on the potential
products they want to buy. Moreover, immediate price discount is an effective sales promotion strategy in
influencing the purchasing behaviour for both rational and non-rational consumers

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 CHAPTER- III

OVERVIEW OF STUDY

3.1 INDUSTRY PROFILE:

3.1.1 Introduction
Indian tyre industry has been reporting good growth figures over the past few years, spurred by the
growing passenger vehicle and two-wheeler market. It has emerged as one of the most competitive markets in
the world and with the emergence of new technology, ultra-modern production facilities and availability of
raw materials, the sector is poised to grow further. Major technological changes have taken place in tyre
design from conventional bias or diagonal ply from the past to the current steel radial tyres, tubeless tyres,
with low aspect ratio tyres, puncture resistant tyres etc. Testing standards have also evolved accordingly to
ensure high performance, mileage, safety, reliability and longevity of the tyres. The Indian tyre industry has
been quick in adopting the latest technology trends through foreign collaborations and tailoring these to
Indian needs. The manufacturers are also investing in the development of ‗green tyres‘ and in capacity
expansion for radial tyres. Innovative technologies like self-inflation and run flat tyres (RFT) are also gaining
popularity in the Indian market. The market for radial tyres in the commercial 64 vehicles segment has seen
rapid growth in recent times. As per ATMA, 2016-17 report, in the medium and heavy commercial vehicle
segment the current adoption levels of radial tyres is around 18 per cent. In the light commercial vehicle
segment, it is estimated to be 20 per cent. The passenger car segment switched to radial tyres earlier, and
within a short period of time, penetration levels reached almost 98 per cent This segment will surely be the
focus for Indian tyre manufactures as it is expected to grow at about 15 per cent over the next few years to Rs
393 billion by 2015.
3.1.2 Global Scenario
As per www.ffmnag.com, (July,2013) report, increasing sales of passenger and commercial vehicles
in developing countries and a strong demand for replacement tyres is providing significant opportunities for
players in the automotive tyre industry. A projected CAGR of around 4 per cent over the next five years for
the global tyre market means an estimated $187 billion by 2017. The passenger car segment is forecast to
witness the highest growth over the next five years. Regionally, the APAC region is anticipated to lead
growth during the forecast period. It is expected to see the strongest growth in rubber demand, reflecting the
strength of the tyre market in China, India, Thailand and Vietnam. The global automotive tyre market is

21
highly consolidated and consists of passenger car tyres, heavy truck tyres and other segments. North America
dominates this market with approximately 30 per cent of the total global demand for tyres. Fuel efficiency
and safety concerns are key factors influencing the purchase of tyres in developed markets, which are
transitioning into higher-performance tyres. Japan and Europe have implemented stringent tyre performance
criteria (covering rolling resistance related fuel saving, wet grip related braking distance and noise reduction).
Europe anticipates a 20 million tones reduction in traffic related carbon dioxide emissions per year due to
enhanced tyre performance.

3.1.3 Global Major Tyre Manufactures

As per Plimsoll tyre manufactures‘ analysis, in 2019 (www.marketresearchreports.biz, 22.05.2014)
there are 320 largest tyre manufacturers (global) companies of which the best trading partners winning in
both financial strength and sales: Bridgestone France has ranked one. 65 On sales growth, the fastest growing
company is Nizhnekamskshina.
Market size: 2019 year market has increased by 15.4%.
3.1.4 Marketing Perspectives
Segment wise Tyre Supplies: 2018 - 2019 (April - December)
Tyre supplies are broadly to the following segments:
 Replacement market (aftermarket)
 Original Equipment Manufacturers (OEMs), i.e. vehicle manufacturers
 Export
 State Transport Undertakings (STUs) (primarily for bus tyres)
 Government purchases (primarily for defense usage)
Tyre supplies to domestic replacement market in the different segments take the larger pie of total production
which is followed by OEM and export market

3.2 COMPANY PROFILE

The company is the undisputed market leader in Truck/Bus Radials in India, with 400+ selling
locations, 4,000 strong dealer network served by 9 plants in India and 3 plants in JK Tornel , Mexico. With
state-of-the-art modern production facilities in all 12 plants, total production capacity is over 20 million tyres
p.a.

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 Shri Hari Shankar Singhania , was President of J.K. Organisation and Chairman of JK Tyre &
Industries Limited for nearly four decades, from the year 1974 onwards. Hari Shankarji contributed
immensely not only in the growth of this company but also in the industrialization and economic
development of India. In recognition, he received numerous prestigious Indian & International Awards

3.1.1 OVERVIEW:
HOME CORPORATE ABOUT JK TYRE OVERVIEW:

Part of the JK Organisation, JK Tyre & Industries Ltd is a leading tyre manufacturer in India and
amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business
segments in the automobile industry. JK Tyre is the only tyre manufacturer in India to be included in the list
of Superbrand in 2017, the sixth time the honour has been conferred upon the company

JK Tyre has global presence in 100 countries across six continents, backed by production support
from 12 plants - 9 in India and 3 in Mexico. Currently, the capacity across all its plants is about 35 million
tyres per annum. In April 2016, JK Tyre acquired Cavendish India Limited from Birla Tyres. While
acquisition added three modern plants to its portfolio taking the total count to 12, it helped the tyre major
foray into the two/three wheeler segment as well. In 2018, the company inaugurated its state-of-the-art
Raghupati Singhania Centre of Excellence (RPSCOE) at Mysore.

23
 Pioneers of radial technology, JK Tyre produced the first radial tyre in 1977 and is currently the
market leader in Truck Bus Radial segment. With over three decades of technological inovation, JK Tyre
offers tyre for entire range of passenger and commercial vehicles, starting from a 3 kg two-wheeler tyre to a
3.5 ton OTR tyre.
JK Tyre & Industries Ltd has a strong network of 4000 dealers and over 500 dedicated Brand shops called as
Steel Wheels and Xpress Wheels providing complete solutions to its customers.

3.2.2 VISION AND MISSION:

Vision
 To be amongst the most trusted companies with a global tyre brand

Mission
 Be a Customer Obsessed Company - Customer First 24x7
 Most profitable tyre company in india - deliver enhanced value to all stakeholders
 No. 1 tyre brand in india and amongst leading tyre brands globally
 Lead with premium products through technological edge
 Enhance global presence through acquisitions/JV/strategic partnerships
 Be a socially responsible corporate citizen
 Be a learning & innovative organisation with a motivated team

3.2.3 CORE VALUES:

Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the
best. A mindset that says, when it is good enough, improve it. It is a way of thinking that comes only from a
power within.
 Caring for people
24
 Integrity including intellectual honesty, openness, fairness and trust
 Commitment to excellence

3.2.4 OUR HERITAGE:

A) Shri Hari Shankar Singhania(20th June 1933- 22nd February 2013)
Shri Hari Shankar Singhania, was President of J.K. Organisation and Chairman of JK Tyre &
Industries Limited for nearly four decades, from the year 1974 onwards. Hari Shankarji contributed
immensely not only in the growth of this company but also in the industrialization and economic
development of India. In recognition, he received numerous prestigious Indian & International Awards.

B) Tracing the roots

JK Tyre & Industries Ltd. is part of JK Organisation, one of the leading Private Sector Groups with
multi-product, multi-location and multi-business operations in India founded over 100 years ago. The Vision
of JK Tyre & Industries Ltd. is “To be amongst the most admired companies in India, committed to
excellence”.

C) The Indian Powerhouse showcase

JK Tyre & Industries Ltd. has many firsts to its credit in the industry; this includes pioneering
radial technology in India way back in 1977, leading it to be the Radial Leader in the country. It is the
first Indian tyre manufacturer to make Radial tyres for an entire range of vehicles– Truck/Bus, LCV,
Passenger Cars, MUV and Tractors

25
D) Power Communication
JK Tyre has actively engaged with its customers with its continual mass media presence. Through one
of its print advertisements, JK Tyre states itself as ‘The Baadshah of radial tyres on Indian roads’ with more
than 15 million truck and bus radial tyres on Indian roads. It is India’s No. 1 truck and bus radial tyre
manufacturer. JK Tyre’s campaign 'Made for India and Made for You' is built around the advantage of using
JK truck and bus radial tyres.

E) The ultimate benchmark of achievement

The Company has been actively promoting various disciplines of motorsport in India and has invested
over Rs. 100 crores towards building infrastructure. The Racing and Karting programmes are the breeding
ground for the country's young motorsport talent. JK Tyre prodigies like Narain Karthikeyan, Armaan
Ebrahim and Karun Chandhok have done India proud in the global arena.

F) Environmental Quotient
JK Tyre is a green citizen and all its plants are ISO 14001-certified for environmental conservation. It
has taken many green initiatives and launched the ‘Soles with Souls’ programme, an eco-friendly initiative to
use discarded tyres as a lifestyle accessory, which has been acclaimed internationally. JK Tyre Mysore Plant
is a recipient of the ‘Golden Peacock Environment Award’

G) Gearing up for future

JK Tyre is a leading corporate entity, which believes in excellence, innovation and technology. It has
continuously modernised and expanded its manufacturing facilities to retain the edge in several markets
across the world. The key area of thrust continues to be in enlarging its offering to expand the customer base,
providing them with better quality of products and value added services.

26
3.2.5 TYPES OF TYRE:
 Passenger car tyres
 Motor cycle/ scooter tyres
 Commercial tyres
 Farm tyres
 Off the road tyres
 Three wheeler tyres

3.2.6 CUSTOMERS AND DEALERS:

EXCLUSIVE DEALERS:
 Steels/xpress wheels: (car & 2wheelers):

JK Tyre Steel Wheels, the exclusive retail chain, started in 1996. It is a One Stop solution for
complete Tyre Sales and Service requirements of the customer. There are over 450+ such JK Tyre Steel
Wheels spread across the length and breadth of the country, and they are a last mile customer access touch
point. These showrooms are equipped with high technology wheel servicing equipment, providing value
added services like Computerised Wheel Alignment, Wheel Balancing, Automated Tyre Changing, Tyre
Rotation, and Air Care,all under one roof. These showrooms are present in over 80 cities across India, from
Srinagar in the north, to Tiruvilla in the south and from Vapi in the west to Aizawl in the east.
 TRUCK WHEELS (FOR TRUCK & BUS TYRES)
Truck Wheels is a Truck/Bus service center which provides a one stop solution to all tyre maintenance
needs for trucks and buses. Because of increasing Radialisation in the country, superior technology vehicles
and Radial tyres require more sophisticated maintenance. Old and Manual maintenance techniques are not
good enough and Better roads and higher speeds mean very slight misalignments may lead to Safety issues
and higher losses.

While on the one side there is a need for better maintenance, there is a huge shortfall in quality
Manpower leading to lower vehicle maintenance. The JK TYRE TRUCK WHEELS is aimed to provide high
quality maintenance facilities through sophisticated machinery. Systematic and consistent checking of vehicle
parameters helps achieve better performance from the vehicle and hence better earnings.

27
 State of the Art Facilities available:

 Total Vehicle Alignment

 Wheel Balancing
 New Tyre Fitment/Removal
 Tyre Rotation
 Tyre Inflation Check Up
 Nitrogen Filling
 Radial Tyre Repair
 Tyre Sales
3.2.7 MANUFACTURING PLANTS
JK Tyre has 9 modern plants in India which are strategically located at:
 Mysore, Karnataka -3
 Bandore, Madhya Pradesh
 Kankroli, Rajasthan
 Chennai, Tamil Nadu
 Haridwar, Uttarakhand – 3
JK Tyre has also enhanced its global reach by taking over Tornel, a renowned Mexican company,
which has 3 plants in Mexico. All of these plants are equipped with the world’s most advanced
manufacturing and testing machines.
JK Tyre started manufacturing tyres in 1977 with a capacity of 0.5 million tyres per annum. It has
grown multi-fold over the years, and currently has a capacity of more than 16.6 million tyres per annum from
its 12 plants in India and Mexico. With the commissioning of the Greenfield Project in Chennai, the capacity
across 12 plants has crossed the milestone of 20 million tyres per annum.
JK Tyre ,in April 2016, acquired Cavendish Industries Limited in Haridwar, UKD. While the
acquisition added three modern plants to its portfolio taking the total count to 12, it helped the tyre major
foray into the two/three wheeler segment as well.

3.2.8 TYRE CARE & MAINTAINENCE:

Factors affecting tyre performance:

28
 :

3.2.8.1 Inflation Pressure

o The science and the technology that has gone into producing even the best quality of tyre will go waste if the
tyres are not inflated to the recommended pressure – Pressure comensurating to the load carried. The best
performance of tyres can only be achieved when the tyre is inflated to the designated pressure based on the
load per tyre.
o “Under inflation” or “Over inflation” on the tyre tend to impact tyre life, vehicle handling and safety. There
are two factors with weight distribution of the vehicle. One is contact patch and other linked to the tyre wear.
This result in heat buildup/tyre temperature and thus loss of tyre life, premature tyre removals, increased
rolling resistance and fuel consumption.
o “Under Inflation” is more common than Over inflation. Tyre users are not always conscious about
maintaining or matching tyre pressure to the loads carried.
o In pneumatic tyre the “Air carries the load”. The best tyre performance and lower tyre CPKM are obtained by
maintaining correct tyre inflation pressure.
o It is important to remember that the total weight (GVW) carried may not exceed the registered laden weight
(RLW) or vehicle passing weight, but one side of the truck or one axle may be severely overloaded due to
improper distribution of the load in the pay load platform or loading area.
o Improper load distribution overloads the tyre(s). This condition combines with high speed , long hauls and
load transfers result in tyres wearing fast and premature removal of tyres

29
3.2.8.2 Loads and Loading practices

It is important to remember that even one trip of the truck, with improper load distribution may cause
irreversible damage to the tyres.
3.2.8.3 Speed
o Excessive high speeds results in increased tyre running temperature. As the rubber gets heated
up its modulus (stiffness) gets reduced.
o Rubber being a good non conductor of heat the residual heat is retained causing increased tyre
wear and separation of components.

3.2.8.4 Wheel Alignment

o A vehicle is said to be properly align when all the steering and suspension components and set as per
the vehicle manufacturer and when the tyre wheel assembly are running straight and true.
o Proper alignment is necessary for perfect vehicle control, uniform and even tyre wear and safety.
o Recommended to get the vehicle alignment checked and corrected as per vehicle owner’s manual as
soon as tyre are wearing unevenly or ride handling problems(vibrations, pulling to one side etc).

30
3.2.8.5 Wheel Balancing
o A wheel which is not properly balanced may setup vibrations which can affect steering control.
Wheels, tyres and tubes are usually checked for balance before leaving factory.
o This balance is achieved by positioning weights on the wheel to counterbalance heavy spots on the
tyre wheel assembly.
o Properly balanced tyres are important for driving comfort and long tyre life.
o Tyres should be balanced when they are mounted on the wheels for the first time or when they are
removed for repair or periodically as per vehicle manufacturer’s recommendations.
3.2.8.6Tyre rotation
o Rotation of tyre in a vehicle is recommended for a uniform tyre tread wear on all wheel position to
achieve optimum tyre life.
o It is prefferred to rotate tyres as per vehicle manufacturers recommendation or in case of any uneven
tyre wear noticed.
o It is suggested to check wheel alignment, wheel balance and suspension before the tyres are rotated.
Rotation patterns /pictures to be incorporated.
3.1.8.6 Road Conditions
o Vehicle /tyre operating conditions which significantly influence tyre life both in terms of new
tyre life and structural durability.
o Rough/abrasive road surface.
o Paved road
o Straight road
o Broken up roads
o Hilly windings roads
o Unmade country roads

3.2.8.7 Driving habits

Careful driving habits will ensure optimum tyre life, unavoidable damages besides avoiding serious
road accidents. Some of the habits which cause serious damages to tyre and road accidents are:
o Over speeding
o Speeding over pot holes, stone etc.
o Quick starts and sudden stops

31
 o Riding over road divider and other obstacles
o Sharp turns at high speeds
o Hitting the road, curbs, objects etc.
o Running on improperly inflated tyres
3.2.8.8 Seasonal Effects
o Climatic and whether conditions in our country varies widely from region to region. Dry and
extremely hot during summer, extreme cold during winter and rains during monsoon.
o This variation in climatic conditions influence tyre life in terms of mileage and structural durability.

3.2.8.9 Do's & Dont's

o Tyre Pressure checks including the spare tyre must be done regularly at least once in two weeks.
o Tyre pressure should be checked using an accurate pressure gauge.
o Tyre pressure should be checked when tyres are cold.
o Under inflation and over inflation will cause rapid tread wear and premature tyre failures.
o Tyre pressure should always be maintained as per the vehicle manufacturers recommendations,
mentioned at information placard, at door, owners manual.

32
 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

4.1. AGE OF THE RESPONDENTS

Age of the Frequency Valid Cumulative

Respondents Percent Percent
Below 20 years 14 14.0 14.0
20-30 years 25 25.0 39.0
30-40 years 24 25.0 64.0
40-50 years 20 22.0 86.0
above 50 years 15 14.0 100.0
Total 100 100.0

Source: Primary Data

It reveals from the above table 4.1 that 14 per cent of the respondents belong to the age group between below
20 years, 25 per cent of the respondents belong to the age group between 20 to 30 years, 24 per cent of the
respondents belong to the age group between 30 to 40 years, 20 per cent of the respondents belong to the age
group between 40 to 50 years and 15 respondents belong to the age between above 50 years.

33
Figure 4.1 – Age of the Respondents

Frequency

Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
Total

34
4.2. GENDER OF THE RESPONDENTS
Table 4.2 – Gender of the Respondents
Gender of the Frequency Valid Cumulative
Respondents Percent Percent
Male 65 65.0 65.0
Female 35 35.0 100.0
Total 100 100.0

Source: Primary Data

The above table 4.2.shows that majority of the respondents were belongs to Male Category and only 35
percent of the respondents were belongs to Female Category

Figure 4.2 – Gender of the Respondents

60

50

40

Strongly disagree
30
Disagree
Neutral
20

10

0
0.5 1 1.5 2 2.5 3 3.5

35
4.3. EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Table 4.3.Educational Qualification of the Respondents
Educational Frequency Valid Cumulative
qualification of Percen Percent
the t
Respondents
Up to
22 22.0 22.0
Schooling
Diploma 13 13.0 35.0
UG 32 32.0 67.0
PG 21 21.0 88.0
Professional 12 12.0 100.0
Total 100 100.0

Source: Primary Data

It reveals from the above table 4.3 that 22 per cent of the respondents were completed only their
schooling, 13 per cent of the respondents were completed their diploma degree, 32 per cent of the
respondents were completed their Under graduation,21 percent of the respondents were completed their
Post Graduation and 12 percent of the respondents were completed their Professional course.

36
Figure 4.3 - Educational Qualification of the Respondents
120

100

80
Opinion
60 Frequency
Valid Percent
Cumulative Percent
40

20

0
1 2 3 4 5 6

37
4.4. NO OF YEARS OF PURCHASE FROM JK TYRES

Table 4.4-No of Years of Purchase from JK tyres

No of Years Freque Valid Cumula
Of Purchase ncy Percent tive
Percent
0-3 years 12 12.0 12.0
3-6 years 22 22.0 34.0
6-9 years 35 35.0 69.0
9-12 years 17 17.0 86.0
12 and above
14 14.0 100.0
years
Total 100 100.0

Source: Primary Data

From the above table 4.4 it is found that among 100 sample respondents;12 percent of the respondents
were purchasing goods from the company for 0-3 years, 22 per cent of the respondents were purchasing
goods for 3-6 years,35 percent of the respondents were purchasing goods for 6-9 years,17 per cent of the
respondents were purchasing goods for 9-12 years and finally 14 percent of the respondents were
purchasing goods from JK tyres for more than 12 years

Figure 4.4-No of Years of Purchase from JK tyres

38
 100
4.5. MEDIUM OF
90
80 UNDERSTANDING ABOUT
70 JK TYRES
60 Series1
Series2 Table 4.5-Medium of
50
Series3 understanding about JK
40
Series4
30 Series5 tyres
20
10 Medium Frequency Valid Cumulative
Series5
0 Percent Percent
1 Series3
2 3
Through 4 5 Series1
6 7
Advertisemen 31 31.0 31.0
t
Through
22 22.0 53.0
Friends
Through
27 27.0 80.0
Social Media
By your own 13 13.0 93.0
Others 7 7.0 100.0
Total 100 100.0

Source: Primary Data

From the analysis it is found that 31 per cent of the respondents were known about this company through
advertisement,22 percent of the respondents were known through their friends,27 per cent of the
respondents were known through social medias,13 per cent of the respondents were known by their own
and only 7 per cent of the respondents were known form other sources.
Figure 4.5-Medium of understanding about JK tyres

39
 120

100

80

Frequency
60
Valid Percent
Cumulative Percent
40

20

0
0 1 2 3 4 5 6 7

4.6. IMPACT OF SALES PROMOTION

Table 4.6 Impact of Sales Promotion

Impact of Frequency Valid Cumulativ

Sales Percent e Percent
Promotion
Yes 74 74.0 74.0
No 26 26.0 100.0
Total 100 100.0

Source: Primary Data

The above table shows that 74 respondents said that sales promotion activities of JK tyres made impact
among customers and 26 respondents were said that sales promotion activities does not made any impact.

Figure 4.6 Impact of Sales Promotion

40
 Strongly disagree

Frequency
Valid Percent
Cumulative Percent

Ratings Frequency Valid Cumulative

4.7.CUSTOMERS RATING ABOUTPercent

JK TYRES Percent
Very good 41 41.0 41.0

TableGood 28 about JK 28.0

4.7-Customers Rating tyres 69.0
Neutral 19 19.0 88.0
Average 9 9.0 97.0
Poor 3 3.0 100.0
Total 100 100.0

Source: Primary Data

It examine from the above table 4.7, which shows that 41 percent of the respondents were rated Very
Good about the company,28 per cent of the respondents were marked as Good,19 per cent of the
respondents were marked as Neutral, 9per cent of the respondents were marked as Average and 3 percent
of the respondents were marked as Poor.

41
Figure 4.7-Customers Rating about JK tyres
12

10

8
Opinion
6 Frequency
Valid Percent
Cumulative Percent
4

0
0 2 4 6 8 10 12

42
4.9. RESPONDENTS OPINION TOWARDS REPEAT PURCHASE IN JK TYRES AFTER SALES
PROMOTION

Table 4.9.-Opinion towards Repeat Purchase in JK tyres after sales Promotion

Opinion Valid Cumulativ

Frequency
Percent e Percent
Yes 84 84.0 84.0
No 16 16.0 100.0
Total 100 100.0

Source: Primary Data

The above table reveals that 84 per cent of the respondents were said that they will make a repeat
purchase in JK tyres after a sales promotion and 16 respondents were said that they won’t make any
purchase in future.

Figure 4.9.-Opinion towards Repeat Purchase in JK tyres after sales Promotion

43
 180
160
140
120
100
Series4
80
Series3
60 Series2
40 Series1
20
0
Opinion
Frequency
Valid Percent
Cumulative
Percent

4.10. RESPONDENTS OPINION TOWARDS JK TYRES OFFERS SAVE MONEY

Table 4.10-Respondents opinion towards JK tyres offers save money
Opinion Frequency Valid Cumulative
Percent Percent
Strongly
11 11.0 11.0
disagree
Disagree 12 12.0 23.0
Neutral 24 24.0 47.0
Agree 31 31.0 78.0
Strongly
22 22.0 100.0
Agree
Total 100 100.0

Source: Primary Data

It was found that many of the respondents were Agreed that JK tyres offers saving the money of the
44
 customers only 11 per cent of the respondents only strongly disagreed about offers in JK tyres.

Figure 4.10-Respondents opinion towards JK tyres offers save money

Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
Total

4.10. RESPONDENTS OPINION TOWARDS RECOMMENDATION OF JK TYRES

Table 4.10 – Recommendation about JK tyres
Opinion towards Valid Cumulative
Frequenc
recommendatio Percent Percent
y
n
Yes 82 82.0 82.0
No 18 18.0 100.0
Total 100 100.0

Source: Primary Data

It has been found that 82 per cent of the respondents were said that they will recommend JK tyres about
products with others and 18 per cent of the respondents were said that they won’t recommend about JK
tyres with others.
Figure 4.10 – Recommendation about JK tyres

45
 120

100

80
Opinion
60 Frequency
Valid Percent
Cumulative Percent
40

20

0
1 2 3 4 5

4.11. OPINION TOWARDS PRICE OFF/DISCOUNT

Table-4.11-Opinion towards Price Off/Discount

Opinion Frequency Valid Cumulative

Percent Percent
Strongly
17 17.0 17.0
disagree
Disagree 16 16.0 33.0
Neutral 23 23.0 56.0
Agree 30 30.0 86.0
Strongly Agree 14 14.0 100.0
Total 100 100.0

46
 Source: Primary Data
The above table reveals that majority of the respondents were Agree about Price Discount and 17
respondents were d\strongly disagreed about JK tyres Price discounts.

120

100

80

60
Frequency
40
Valid Percent
Cumulative Percent
20

0
e e l e e l
re re tra re re ta
sa
g
sa
g u Ag Ag To
di Di Ne ly
lg y ong
on r
r St
St

4.11. OPINION TOWARDS FREE GIFTS

Table 4.11-Opinion towards Free Gifts

Opinion Frequency Valid Cumulative
Percent Percent
Strongly
21 21.0 21.0
disagree
Disagree 12 12.0 33.0
Neutral 14 14.0 47.0
Agree 44 44.0 91.0
Strongly
9 9.0 100.0
Agree
Total 100 100.0

47
 Source: Primary Data
It examine that out of 100 sample respondent 44 per cent of the respondents were agreed about free
gifts,22 percent of the respondents were strongly disagreed about free gifts provided by JK tyres and 14
per cent of the respondents were gave Neutral opinion about Free gifts.

Figure 4.11-Opinion towards Free Gifts

Total

Strongly Agree

Agree
Frequency
Valid Percent
Neutral Cumulative Percent

Disagree

Strongly disagree

0 20 40 60 80 100120140160180200

4.11. OPINION TOWARDS COUPON/LOTTERY

Table 4.11- Respondents opinion towards Coupon/Lottery

Opinion Frequenc Valid Cumulative

y Percent Percent
Strongly
9 9.0 9.0
disagree
Disagree 12 12.0 21.0
Neutral 14 14.0 35.0
Agree 34 34.0 69.0
Strongly Agree 31 31.0 100.0

48
 Total 100 100.0
Source: Primary Data
The table 4.11shows that 34 per cent of the respondents were agreed about coupon/Lottery provided by
JK tyres, 31 percent of the respondents were strongly agreed and 9 percent of the respondents were
strongly disagreed about coupon/lottery provided by JK tyres.

Figure4.11- Respondents opinion towards Coupon/Lots

100
90
80
70
60
50 Frequency
Valid Percent
40
Cumulative Percent
30
20
10
0
Strongly Disagree Neutral Agree Strongly Total
disagree Agree

4.12. OPINION TOWARDS SALES PRMOTION ACTIVITES HELPS IN SALES

Table 4.12-Sales Promotion activities helps in sales
Opinion Frequency Valid Cumulative
Percent Percent
Strongly disagree 14 14.0 14.0
Disagree 13 13.0 27.0
Neutral 29 29.0 56.0
Agree 26 26.0 82.0
Strongly Agree 18 18.0 100.0
Total 100 100.0
Source: Primary Data
It examine that out of 100 sample respondent 18 respondents were strongly agreed about that sales

49
 promotion activities helps in increasing sales of JK tyres,29 per cent of the respondents were gave neutral
opinion about this and 14 percent of the respondents were Strongly disagreed about this.

Figure 4.12-Sales Promotion activities helps in sales

120

100

80

Frequency
60
Valid Percent
Cumulative Percent
40

20

0
0 1 2 3 4 5 6 7

4.13 SALES PROMOTION ACTIVITIES FOLLOWED BY JK TYRES

TABLE 4.13 SALES PROMOTION ACTIVITIES
Tota
S. Reason Rank l
No 1 2 3 4 5
Bonus Packs 27 13 16 2 1
1 5 9 100
Life time 14 29 13 2 2
member ship 4 0
2 cards 100
Coupon/Lottery 16 26 20 1 2
3 4 4 100
4 Free Gifts 18 16 32 1 1 100

50
 6 8
Price 25 16 19 2 1
off/discount 1 9
5 100
Total 100 100 100 100

Working of Garret’s Rank

Garret’s Ranking = 100(Rij- 0.5)/ Nj
= 100(1-0.5)/5 = 10 = 76
= 100 (2-0.5)/5= 30 = 61
= 100 (3-0.5)/5= 50 = 50
= 100 (4-0.5)/5= 70 = 40
= 100 (5-0.5)/5= 90 = 25

Source: Primary Data

The above table analysis shows that different ranks were given to sales promotion activities provided
by JK tyres and Garrets raking calculation was done

Garret’s Score Value of Ranks

TABLE 4.13 GARRET’S SCORE VALUE OF RANKS
Tot
S .N Reason Rank al
o 1 2 3 4 5
Bonus Packs 2,05 793 800 100 475 5,12
1 2 0 0
2 Life time 1,06 176 650 960 500 4,94
member ship 4 9 3

51
 cards
Coupon/ 121 158 100 560 600 4,96
3 Lottery 6 6 0 2
Free Gifts 136 976 160 640 450 5,03
4 8 0 4
Price 190 976 950 840 475
off/discount 0 5,14
5 1
Total 7,60 6,10 5,00 4,00 2,50
0 0 0 0 0

Source: Primary Data

The above table 4.13.shows that Garrets ranking scores of a different sales promotion
activities provided by the JK tyres. Price discount method is high score value and life time
membership has low value of score.

RANK THE SALES PROMOTION ACTIVITIES FOLLOWED BY JK TYRES

TABLE 4.14 SALES PROMOTION ACTIVITIES FOLLOWED BY JK TYRES

52
 Reason
S .
No Total Avg Score Rank
1 Bonus Packs 5,120 51.20 3
Life time member ship
2 cards 4,943 49.43 5
3 Coupon/Lottery 4,962 49.62 4
4 Free Gifts 5,034 50.34 2
Price off/discount
5 5,141 51.41 1

Source: Primary Data

The above table 4.14 we understood that customers gave first rank to Price off/Discount
method, Second rank to Free gifts, Third rank to Bonus Packs, Fourth Rank to Coupon/Lottery method and
Fifth rank to Life time membership cards.

4.14 OPINION TOWARDS SALES PROMOTION ACTIVITIES

In this study the respondents are asked to give their opinion on the basis of five levels namely Strongly

53
 Agree, Agree, No opinion, Disagree and Strongly Disagree. The response observed for each of the items
in the schedule have been scored and tabulated on a master sheet.
The scoring factor is based on Likert’s method. To secure the total score five points were given for
Strongly Agree, Four for Agree, Three for No opinion, Two for Disagree and one for Strongly Disagree.
Thus the total scores were obtained.
The levels of attitude have been classified in three categories namely High Level, Medium Level and
Low Level for analytical purpose. The Mean and Standard Deviation of the scores of the respondents
were obtained.
The scores which exceed the value of ≥X +  ≤ ≥(Mean + Standard Deviation) were classified as High
Level , while the scores which were less than ≤X -  (Mean – Standard Deviation) were categorized as
Low Level and those scores which are between high and low were classified as Medium Level.
The researcher has made an attempt to study the level of attitude of the respondents. This factor is
classified as high level, medium level and low level.

4.15 OPINION TOWARDS SALES PROMOTION ACTIVITIES

In this study the respondents are asked to give their opinion on the basis of five levels namely Strongly

54
 Agree, Agree, No opinion, Disagree and Strongly Disagree. The response observed for each of the items
in the schedule have been scored and tabulated on a master sheet.
The scoring factor is based on Likert’s method. To secure the total score five points were given for
Strongly Agree, Four for Agree, Three for No opinion, Two for Disagree and one for Strongly Disagree.
Thus the total scores were obtained.
The levels of attitude have been classified in three categories namely High Level, Medium Level and
Low Level for analytical purpose. The Mean and Standard Deviation of the scores of the respondents
were obtained.
The scores which exceed the value of ≥X +  ≤ ≥(Mean + Standard Deviation) were classified as High
Level , while the scores which were less than ≤X -  (Mean – Standard Deviation) were categorized as
Low Level and those scores which are between high and low were classified as Medium Level.
The researcher has made an attempt to study the level of attitude of the respondents. This factor is
classified as high level, medium level and low level.

TABLE-4.15 OPINION TOWARDS SALES PROMOTION ACTIVITIES

Age of the Effectiveness of Training Methods
respondents High Medium Low Total
Below 20 0 (0%) 3 (50%) 3 (50%) 6 (100%)
years
20-30 years 1 (8.3%) 11 (91.7%) 0 (0%) 12 (100%)
30-40 years 18 (33.3%) 28 (51.9%) 8 (14.8%) 54 (100%)
40-50 years 1 (4.5%) 12 (54.5%) 9 (40.9%) 22 (100%)
Above 50 4 (66.7%) 12 (54.5%) 0 (0%) 6 (100%)
years
Total 24 56 20 100

Source: Primary Data

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 It is observed from the table 4.16 that out of 20-30 age group respondents 91.7% are having a medium
level of effectiveness towards measures to training methods, while above 50 years age group respondents
had high level of opinion towards measures to sales promotion. tra
It was found that out of 20-30 age group respondents 91.7% are having a medium level of opinion
towards sales promotion activities followed by JK tyres.

4.15. CHI SQUARE TEST

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 The Chi square test procedure tabulates a variable into categories and computes a
chi square statistic. This goodness-offit test compares the observed and expected frequencies in each
category to test that all categories contain the same proportion of values or test that each category
contains a user-specified proportion of values. Statistical method to test whether two (or more) variables
are: (1) independent or (2) homogeneous. The chi-square test for independence examines whether
knowing the value of one variable helps to estimate the value of another variable. the chi-square test for
homogeneity examines whether two populations have the same proportion of observations with a
common characteristics.

4.16. CHI SQUARE TEST FOR ASSESSMENT OF NO OF YEARS OF PURCHASE

Table 4.16 BASED ON AGE

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 Null Hypothesis: There is no significant relationship between age and no of years of purchase.
Alternative Hypothesis: There is significant relationship between age and no of years of purchase

Chi-Square Tests

Asymp.
Sig. (2-
Value Df sided)

Pearson Chi-Square 16.43 8 .037

3a
Likelihood Ratio 18.06 8 .021
7
Linear-by-Linear 2.429 1 .119
Association
N of Valid Cases 100

a. 9 cells (60.0%) have expected count less than 5. The

minimum expected count is 1.50.

The outcome of the chi-square test is calculated by using SPSS version 17.0 is presented in the table 4.16.
The Pearson Chi-square test calculated value is less than the likelihood ratio, hence the null
hypothesis is accepted and the alternative hypothesis is accepted.
Hence it can be concluded that there is no significant relationship between age and no of years of
purchase.
Source: Primary Data
The outcome of the chi-square test is calculated by using SPSS version 17.0 is presented in the
table 4.16.The Pearson Chi-square test calculated value is less than the likelihood ratio, hence the null
hypothesis is accepted and the alternative hypothesis is rejected. Hence it can be concluded that there is
significant relationship between age and no of years of purchase.

4.17. REGRESSION AND ANOVA TEST

Table 4.17 BASED ON MEDIUM OF KNOWN ABOUT JK TYRES
ANOVAa

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 Model Sum of df Mean F Sig.
Squares Square
574.4
Regression 131.993 1 131.993 .000b
63
1
Residual 22.517 98 .230
Total 154.510 99
a. Dependent Variable: Mode of understanding about JK tyres
b. Predictors: (Constant), Educational Qualification of the Respondents

Coefficientsa
Model Unstandardized Standardiz t Sig.
Coefficients ed
Coefficien
ts
B Std. Beta
Error
-
(Constant) -.119 .117 .312
1.016
1 Educational
23.96
Qualification of the .885 .037 .924 .000
8
Respondents
a. Dependent Variable: Mode of understanding about JK tyres
Source: Primary Data
From the above table we understood that two way ANOVA test is conducted between educational
qualification of the respondents and mode of understanding about JK Tyres. There was a statistically
significant interaction between the effects of educational qualification and mode of understanding about
JK Tyres .

CHAPTER-V
FINDINGDS AND SUUGESTIONS

59
5.1. INTRODUCTION

The study was based on the assessment of a studyon effectiveness of sales promotion apparatus by JK

tyres. The findings, conclusions and suggestions are the final chapter of this study. Findings are the extracts

of the analysis done in the earlier chapter. The conclusions from findings are drawn. Further the suggestions

are put forth in order to give effective training to the students.

5.2 FINDINGS:
1. It was found that out of 100 respondents, Majority of the respondents 25% are in the age group

between 20 to 30 years.

2. It was found that out of 100 respondents, Majority of the respondents 65% are from male gender.

3. It was found that out of 100 respondents, Majority of the respondents 32% were UG qualification.

4. It was found that out of 100 respondents, Majority of the respondents 35 percent were purchasing

goods for 6-9 years

5. It was found that out of 100 respondents, Majority of the respondents 27 percent were known through

social medias

6. It was found that out of the 100 respondents, Majority of the respondents 74 respondents said that

sales promotion activities of JK tyres made impact among customers.

7. It was found that out of 100 respondents Majority of the respondents 41 percent of the respondents

were rated Very Good about the company

8. It was found that out of 100 respondents. Majority of the respondents 84 percent were said that they

will make a repeat purchase in JK tyres after a sales promotion

9. It was found that out of 100 respondents 11 per cent of the respondents only strongly disagreed about

offers in JK tyres.

10. It is found that out of 100 respondents, Majority of the respondents 82 percent were said that they will

recommend JK tyres about products with others

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 11. It is found that out of 100 respondents, 17 respondents were distrongly disagreed about JK tyres Price

discounts.

12. It is found that out of 100 respondents, 44 per cent of the respondents were agreed about free gifts.

13. It is found that out of 100 respondents, 34 per cent of the respondents were agreed about

coupon/Lottery provided by JK tyres.

14. It was found that out of 100 respondents, 29 per cent of the respondents were gave neutral opinion

about this.

5.3 SUGGESTIONS:

 JK Tyres have improve its promotional platforms to improve to reach the new customer. JK Tyres is
well known in all over Tamil Nadu, they have to reach all over TamilNadu for a better sales and
profits.
 JK Tyres have to keep the promises to its customer at the time of delivery. They should train their
sales executives properly with adequate knowledge and skill to handle customers. JK Tyres should
keep their commitment to promise at the time of delivery and fulfill the customer expectation.
 JK Tyres should enhance a quality goods for its customer at the time of service and delivery. JK Tyres
should maintain its decorum and principle for its customer to enhance the best quality and best
service.
 JK Tyres sales force should be reliable to its customer to withheld them from changing their brand or
dealers. JK Tyres will have improve it advertising mode and improve its strategy to attract new
customers.
 JK Tyres should improve it efficiency and growth to with stand in the market. The growth of JK
Tyres is completely depend on the sales of the Volkswagen cars. The company should focus on the
sales by fulfilling the customer’s needs.

 JK Tyres should have good and sufficient customer relationship management to its customers.
Customer relationship management should solve the following queries and serve at the best for its
customers. The company should make sure that they give more importance to improve the quality and
service for its both existing and new customer.

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  JK Tyres should maintain its goodwill to reach the customer. The company should create good will
among its customers to withstand the competitors and other dealers.
 Goodwill is very important for every organization to retain its customer from shifting of brand. It is
very important for JK Tyres to create a goodwill among the customer.
 JK Tyres should provide good discounts and loyalty to the existing customer. To attract new customer
JK Tyres should give better discounts and gifts for the purchases made by the customers

5.4 CONCLUSIONS
Sales promotion techniques are intended to have a direct impact on buying behavior, which implies
their short-term focus. However, every aspect of communication by a company has some sort of effect on the
company’s brand image, and therefore any company which has recognized the importance of thinking
strategically knows that it must look beyond short-term effects. In terms of brand building, Sales promotion
has traditionally been associated with a negative long term impact due to its predominantly price-orientated
nature. But, as we have seen, this view has neglected the full scope of Sales Promotion methods.
 The Indian consumer is still very need oriented
 In emerging markets, selling and keeping the customers happy is more challenging. They are targeting
only higher middleclass &higher level customer so they left people from lower middle class.
 Today and tomorrow marketing managers really do not have the choice whether or not to use sales
promotion but only whether to use these valuable tools poorly or skillfully.

A STUDY ON EFFECTIVENESS OF SALES PROMOTION APPARATUS BY

JK TYRES
QUESTIONNAIRE
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1. Name of the Customer ------------------------------------

2. Gender of the Respondents a) Male b) Female

3. Age of the respondents

a) Below 20 years b)20-30 years c)30-40 years d)40-50 years f)above 50 years

4. Educational qualification of the Respondents

a)Up to Schooling b)Diploma c) UG d) PG e)Professional

5. How many no years you are purchasing the goods from JK tyres?

a) 0-3 years b)3-6 years c)6-9 years d)9-12 years e) 12 and above years

6. What is the reason for purchasing this product?

a) Quality b) Rate c) Quantity d) Loyalty e) Customer Service

7. How you know about JK tyres?

a)Through Advertisement b)Through Friends c) Through Social Media d)By your own e) Others

8) Rank the Sales promotion activities carried JK tyres

Sales Promotion Activities Rank

Price off/Discount

Bonus Pack

Free Gifts

Coupon/Lottery

Life Time Memberships

9.Does the Sale promotion of JK tyres attract you for shopping?

a) Yes b) No

10. How do you Rate the offer in JK tyres?

a) Very good b) Good c)Neutral d) Average e) Poor

11. Does the sale Promotion activities of JK tyres made you to visit Kati Apparels again?
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a) Yes b) No

12. Do you think that sale promotion activities of JK tyres would save your money?

a) Strongly disagree b) Disagree c) Neutral d) Agree e) Strongly Agree

13. Would you recommend JK tyres other?

a) Yes b) No

14. State your opinion towards effectiveness of the sales promotional activities adopted by JK tyres

S.A-Strongly Agree, A- Agree, N.-Neutral , D.A- DisAgree, S.D.A- Strongly Disagree

S.No Particular S.A A NO D.A S.D.A

1. Price off/Discount

2. Bonus Pack

3. Free Gifts

4. Coupon/Lottery

15. Do you believe that sale promotion activities help in guiding customer on purchase

decision?

a) Strongly disagree b) Disagree c)Neutral d) Agree e) Strongly Agree

16.Does the sale promotion activities of JK tyres made you to purchase in JK tyres again?

a) Yes b) No

17. Any other suggestions to improve Sales Promotion activities in JK tyres

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