Hii varundivide the work among u 3  Add some images  Part 2) and 4) (see from agenda) is not donesee

wt is to b included in these parts from the slide no.8 and 11..  also add some concepts from theory wt sir taught..  add anything othr than this dat u find missing or important  I wil do the conclusion part once u mail me the complete ppt.

EICHER MOTORS LTD.

Presented by: Abhishek Gupta, Gurpreet Gill, Varun Raj Atri, Varun Bakshi

Journey of filling the loops in the chain

AGENDA OF PRESENTATION

1) The case and Background study 2) Automobile industry in 1980s 3) About Eicher Motors Ltd. 4) Eichers dealership strategies 5) Current sales & distribution scenario 6) Conclusion

1) The case and background study: 1980s

Liberalization of highly regulated Indian automobile industry

Dominating players

HCV
Telco (75%) Ashok leyland ( 25%)

LCV
Bajaj Tempo (65%) Mahindra & Mahindra (45%)

1) The case and background study: 1980s

Strategy of new LCV entrants: JV with Japanese manufacturers

DCM & Toyota Swaraj Tractor & Mazda Allwyn & Nissan Eicher Tractors & Mitsubishi

1) The case and background study: 1980s

DCM Toyota
First entrant

No scope of much differentiation Premium based booking strategy High decibel advertising campaign Tied up with dealers with large showrooms and workshops

Building brand name

1) The case and background study: 1980s  Allwyn Nissan: tied up with large established dealers  Swaraj Mazda: tied up with smaller dealers who could run the risk of
evoking poor customer confidence in the Company

 Eicher Mitsubishi:
Delayed entry but with a better product than competitors

Entered the market when demand went low Could not find high investing potential dealers

2) AUTOMOBILE INDUSTRY IN 1980s

DEMAND????? INFRASTRUCTURE DEVELOPMENT??? GROWTH RATE???

3) ABOUT EICHER MOTORS LTD

Eicher Motors, was founded in 1982 to manufacture a range of reliable, fuel-efficient commercial vehicles of contemporary technology. The unit manufactures and markets commercial vehicles with Gross Vehicle Weight (GVW) ranging from 5-25 tons. Today, Eicher Motors is one of the leading manufactures of commercial vehicles in India with a 33% market share in the 7T11T segment. The success and growth of this unit is a result of various customerdriven strategies. The manufacturing facility is situated in Central India Pithampur, Madhya Pradesh.

3) ABOUT EICHER MOTORS LTD (journey so far)

In 1986, Eicher Motors entered into a technical and financial collaboration with Mitsubishi Motor Corporation of Japan to manufacture the Canter range of vehicles. The technical assistance agreement with Mitsubishi ended in March 94 after successful transfer of technology. Eicher Motors has acquired formidable expertise in designing and developing commercial vehicles. Eicher Motors products have been well accepted in the market. This is also demonstrated by significant sales of its commercial vehicles in export markets where the company competes with reputed international brands.

4) Eichers dealership strategies How they succeeded in winning dealerships in 1986???? Did they gave more margins to dealers than other competitors? Dealers were big or small??? How they convinced dealers to invest in eicher How was the demand for lcvs estimated??

5) CURRENT SALES & DISTRIBUTION SCENERIO

Eicher Motors functions through a strong three-tier service network consisting of  authorized distributors,  service centers and  company trained private mechanics. The vehicles are sold and serviced through a network of over 576 Authorized Contact Points all over India, supported by service centers and over 4500 company trained private mechanics, which are close at hand on all major highways throughout India to provide initial "first aid" to the vehicles if required.

DEALERS & Sales persons

SALES ORGANISATION: There are different Territory Managers and Area Managers for different priducts Additional support staff for after sales repair
Territory Managers

Area managers

Regional Managers

National Sales head

Territory Management
4 regions

THUMB RULE: for 1000 industry size there should be a dealer i.e. one dealership per 1000 units of sales in an area.

states

Dealerships based on industry or market size

Sales representatives(not employees of EML

Channel management

Dealerships are exclusive: dedicated even to the category No conflict of interest arises Involves high capital from dealers Barrier as not many dealers would want to commit to just one company/channel

Channel structure and design

1) 3-S structure
SPARES

SERVICE

SALES

2) 2-S Channel if there is big territory and adequate no. of vehicles are not sold but vehicles are supplied in those areas only for service and spare

SPARE SERVICE

3) 1-S CHANNEL These are retailers who sell spares only

Only spares outlet

CHANNEL CONFLICTS: On discounts territory infringement PRINCIPLES TO RESOLVE CONFLICTS  Diplomacy  arbitration  Partner relationship management for long term partnerships  use of IT  Rewards to top performers based on Dealer scorecard and audit scores

5) CURRENT SALES & DISTRIBUTION SCENERIO

5) CURRENT SALES & DISTRIBUTION SCENERIO

The functioning of Eicher dealers :

use following methods to attract customers: tele marketing personal selling discounts test rides free gifts free service camps loan festival

5) CURRENT SALES & DISTRIBUTION SCENERIO

The Group has approximately 675 vendors supplying components and sub-assemblies that testifies to the strength of the vendor base. Its products are brought to the customer through its strong network of around 380 dealers distributed across the length and breadth of India. Eicher has presence in more than 40 countries across the world.

5) CURRENT SALES & DISTRIBUTION SCENERIO

Convert PowerPoint to flash for web sharing. Post your slide show Learn More on Myspace and blog.

Add flash-based quizzes and demo to slide show to interact with your audience. Learn More

Convert PowerPoint to video or burn to DVD. Present your slide show on TV Learn More to share with family.