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Transcript of 1pt10mba28,Murugappa Group. (1)
MURUGAPPA GROUP
RAMANGOUDA.S.PATIL,
1PT10MBA28
BUSINESS MARKETING
MURUGAPPA GROUP
1. INTRODUCTION
Murugappa group is one of India’s leading business conglomerates. It has been in
business since 100-plus years, it has withstood enormous vicissitudes, including
strategically moving its assets back to India and restarting from scratch. Murugappa
Group has drawn from its rich heritage to carry out organisational and entrepreneurial
changes through transparency, and without operational disruption. The family-
managed Group successfully transitioned to a professionally managed corporate
house. Market leaders in diverse areas of business including Engineering, Abrasives,
Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-
products and Nutraceuticals. . This term paper concludes with the recommendations
for Murugappa group.
THE SPIRIT OF MURUGAPPA GROUP
BUSINESS MARKETING
MURUGAPPA GROUP
2. History
The business has its origins in 1900, when Dewan Bahadur A M Murugappa Chettiar
established a money-lending and banking business in Burma , which then spread to Malaysia,
Sri Lanka, Indonesia and Vietnam. In these 100-plus years, it has withstood enormous
vicissitudes, including strategically moving its assets back to India and restarting from
scratch in the '30s.Starting with a sandpaper plant, the Group forayed into making steel safes,
and then into manufacturing. It set up an insurance company, and bought a rubber plantation;
making a small but significant beginning. Today, it is one of the country's biggest industrial
houses. Group achieved a turnover of Rs. 17,051crores (USD 3.8 billion as on March 31,
2011. Today, we have set ourselves to achieve a total turnover of USD 7.2 Billion by 2014.
Murugappa Group is on the threshold of the global business arena today, backed by 100 years
of experience in diverse fields, sound traditional values and high ethical standards.The group
is a market leader in India across a spectrum of products like fertilisers, abrasives, automotive
chains, car door frames and steel tubes. Some of the country's best-known brands like BSA
and Hercules in bicycles, Parrys Spirulina and Parrys Beta Carotene in nutraceuticals,
Ballmaster and Ajax in abrasives, Gromor and Paramfos in fertilisers, and many more come
from the Murugappa Group.
The group has grown consistently through its decisive and visionary response to changing
times. Its pioneering efforts, steadfast commitment to ethical business practices and its
dogged pursuit of new areas to extend its business acumen have brought in its wake several
prestigious national and international awards. The Group's business philosophy can be
summed up in this couplet from the ancient Indian treatise on wealth creation and
governance, the Arthashastra:
"The fundamental principle of economic activity is that no man
you transact with will lose, then you shall not."
The Management Development Institute (IMD) of Lausanne, Switzerland, conferred the
'IMD Distinguished Family Business Award' on the Group in 2001.
BUSINESS MARKETING
MURUGAPPA GROUP
Present status in industry
Today the group has growth rate of 25% and has planned a big acquisition that would give
it a global scale and market. it successfully made many international partnerships and
brought in more innoviate products in the market . Group fosters an environment of
professionalism and has a workforce of over 32,000 employees.
Group has major market share in the diversified fields with a virtue of its quality, application
engineering capabilities, association with key auto majors, cost & delivery, operations and
marketing . Tubes india has market share of 76%, reckon with in India's manufacturing
sector. A wide range of products such as tubes, strips, automobile doorframes, other metal
forms, chains, abrasives, refractories, electro-minerals and industrial ceramics come under the
ambit of its engineering business.
Summary of business areas and products / services
Tube Investments of India Limited
The Tube Investments of India Limited, one of the leading engineering companies belonging
to Murugappa Group, comprises of four divisions which manufacture precision steel tubes
and strips, car doorframes, automotive and industrial chains and bicycles. They are
committed to partnership with customers to help streamline business chains and achieve
imaginative ways of working. Murugappa group Centres already supply a variety of
innovative solutions to a broad range of markets and has grown consistently through its
decisive and visionary response to changing times. Its pioneering efforts, steadfast
commitment to ethical business practices and its dogged pursuit of new areas to extend its
business acumen.
TI Metal Forming (TIMF)
is a pioneer in cold roll forming in India. The company manufactures precision value-added
sheet metal components such as car doorframes, sashes, divisional channels, stainless steel
rails, chassis long members, deep drawn parts, hydroformed parts, CRF sections for Indian
railways etc.Car doorframes are critical skin parts which are import substitutes developed and
manufactured at TIMF.
BUSINESS MARKETING
MURUGAPPA GROUP
TIDC India
TIDC India is one of India's leading manufacturers of power transmission chains for the
industrial, automotive and agricultural segment. TIDC is currently supplying chains for
critical applications in different industry verticals like agricultural construction and material
handling equipment . Some of the global companies using our chains are John Deere, CNH,
NMHG and Terex ,is one of India’s leading manufacturers of power transmission chains for
the industrial, automotive and agricultural segment.
Industrial chains
Power transmission chains: conforming to ANSI and British standards
Engineering class chains
Agricultural chains
Automotive
Drive and cam chains for two wheelers
Sprockets.
Fine blanking
Transmission and engine parts for two wheelers and four wheelers and precision parts for
other industries
CRCA strips
A wide range of CRCA strips including special extra-deep drawing, high tensile, medium
carbon, high carbon.Finding applications in industries like bearings, automobile, auto
ancillaries and general engineering.
BUSINESS MARKETING
MURUGAPPA GROUP
Organization structure
Family tree:-
Shri. A. Vellayan
Chairman.
Mr. Partho Datta
Chief Financial Officer.
Mr. Murugappan Muthiah Murugappan
Vice Chairman.
Ms. Chandrika Raman
Assistant General Manager of Group Corporate Communications.
Mr. Sridhar Ganesh
Director of Human Resources and Director.
Mr. Shyam C Raman,
Senior Vice President – Group HR
BUSINESS MARKETING
MURUGAPPA GROUP
Marketing & sales structure
Size and growth rates:-
BUSINESS MARKETING
MURUGAPPA GROUP
Tube Investments of India Limited is the flagship Company of Murugappa Group. Today, it
has 29 businesses in sectors ranging from engineering to nutraceuticals and has 15
manufacturing/assembly units spread across the country with a workforce of 32000
employees. These units are ably supported by marketing offices that act as interface between
customer requirements and production team. TPI has been constantly endeavouring to
provide innovative solutions and bring in new technology in tube making . TPI has also set
up distribution centers across various parts of India , which ensures Just in Time service and,
providing comfort to the customer in meeting his daily requirements
The group has planned to invest 1500cr in capital to reach its target of making group
turnover reach $7.8 billion by 2013-2014. Taking on a challenging economic environment,
the family owned diversified Murugappa group lifted its profit before tax by 29% to Rs 1354
crore .Group has recently acquired a major stake in GMR industries. It has many alliances
with multinationals companies and maintained a family controlling stake of 45% -65% in
each of the companies which has lead to the enmorous growth of the group. Three year plan
has managed the group to increase their performance by 95% in productivity.The confidence
of the group is coming from the fast growing economy8.5% of india and has helped to bring
about efficiencies, creating entry barriers through a presence in a greater proportion of the
value chain.
TI is the market leader in precision tubes with 62 percent market share by virtue of its quality
and application engineering capabilities. It is the market leader in roll formed car doorframes
with 76 percent market. TI is a leading player in automotive chain with 35 percent market
share by virtue of its quality, cost and delivery and association with two wheeler majors. The
company is also a leading player in bicycle segment with 34 percent market share by virtue of
its brand equity, product development capability and proximity to the markets. Recently, TI
acquired a controlling stake in Sedis Group, France.
TPI has been steadily growing in segments and its success stems from market driven,
customer oriented approach coupled with superior process design, delivering high quality
products and efficient customer service ensuring total customer satisfaction. TPI has been
supplying to major auto and component manufacturers in India and abroad such as Bajaj
Auto ltd, TVS Motors Limited, Toyota India, Tata Motors Ltd, Hero Honda Anciliaries and
BUSINESS MARKETING
MURUGAPPA GROUP
major Shock Absorber manufacturers like Delphi, Gabriel, Munjal Showa, Escorts ,
Endurance and others
Indian Auto Market Growth .
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as
against 78,97,629 units in 2004-05.
The automotive industry crossed a landmark with total vehicle production of 10
million units.
According to the Society of Indian Automobile Manufacturers (SIAM), car sales was
8,82,094 units against 8,20,179 units in 2004-05.
The growth of domestic passenger car market was 7.5 per cent
Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.
The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units
against 62,09,765 units in 2004-05.
Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2004-05.
Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in
2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against
3,18,430 units in 2004-05.
Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23
per cent growth in the year ended March 31, 2005.
Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against
1,19,924 units in 2004-05.
Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in
2004-05.
BUSINESS MARKETING
MURUGAPPA GROUP
Auto Component Market
The Indian auto parts industry is significantly fragmented with a large number of players
having a turnover of less than US$10 million per year. The industry directly employs about
2,50,000 people and has an annual turnover over US$ 56.3 billion.
Estimated market size - US$ 6.7 bn
Estimated market size by 2012 - US$ 17 bn
Projected CAGR - 15%
Market Advantage
Fast paced urbanization to rise from 28% to 40% by 2020.
Upward migration of household income levels.
Middle class expanding by 30-40 million every year.
Growing working population
MAJOR PLAYERS IN THE INDUSTRY
The Manufacturing industry has become more volatile. This has been the result of
fluctuations in metal prices and production prices, as well as changes in legislation and
assistance packages. India’s increasing per capita disposable income and growth in exports is
playing a major role in the rise and the competitiveness of the industry. Economic
liberalization – allowing unrestricted Foreign Direct Investment (FDI) and removing foreign
currency neutralisation and export obligations – has been also been one of the key to India’s
manfacutring volatility.
TATA STEELS.
HERO CROP.
MAHINDRA & MAHINDRA
BAJAJ AUTO.
BOSCH
BUSINESS MARKETING
MURUGAPPA GROUP
IMPORTANT ENVIRONMENTAL FACTORS:-
Political
Political climate in a different countries producing an buying products regarding
policies on import, export and manufacture of automobiles and automobile
components. This will also include policies on allowing setting up of
manufacturing plants by foreign companies.
Stability of governments. This may affect the future conditions in a country.
Taxation policies.
Impact of Liberalization
The economic reforms initiated by the government in 1991 have added new
dimensions to the industrial growth in general, and steel industry in particular.
Some of the important features due to liberalization are:
Licensing requirement for capacity creation has been abolished.
Steel industry has been removed from the list of industries reserved for the state
sector.
Automatic approval granted for foreign equity investment in steel has been
increased up to 74%.
Economical
The group has been consistently been projecting a steady growth rate of 20% due to immense
development in the indian economy and market development . group’s strategic alliances
with multinationals and takeovers have contributed to the development in the sector.
BUSINESS MARKETING
MURUGAPPA GROUP
SOCIAL
Since the beginning of Murugappa group in 1924 has formed a trust AMM, which manages
hospital and schools in Chennai and Pallathur, the native place of the founders. The Group
continues to build on the culture of philanthropy initiated by its founder. Social commitment
has always been the cornerstone of the group's ethos and it has been at the forefront of eco-
conservation, public health, and education in the communities where its companies operate,
since 1957.
The Group has scaled each pinnacle consistently through its decisive and visionary response
to changing times. Its pioneering efforts, steadfast commitment to ethical business practices
and its dogged pursuit of new areas to extend its business acumen have brought
unprecedented success and several prestigious national and international awards. But there is
no stopping for the Murugappa Group; the journey is still on, in search of scaling newer
heights and finding greener pastures - beyond the horizon.
Socio-cultural
Lifestyle and preferences of people, that impact their choice of types of products.
Social norms that impact the decision to own and use automobiles versus other means of
transport.
Technological
Technology relating to product designs
Technology of automobile manufacture.
Technological developments that may increase or decrease use of automobiles.
Legal
Legal provision relating to environmental population by automobiles.
Legal provisions relating to safety measures.
BUSINESS MARKETING
MURUGAPPA GROUP
3. Buyer behavior in the industry
Typical buying center and characteristics for the industry.
Goals & Objectives of Automotive buying centre are as follows
To advice & empower the consumer as to the most sensible solution for their
automotive needs through a custom based consumer profile.
To assess the viability of the potential vehicles.
To provide a selection of top choices available in the entire automotive market at
wholesale cost, not limiting the customer to specific brands.
To provide Mechanical Certification to meet all safety standards and to ensure
vehicular longevity.
To provide personal budgeting support classes to help the consumer stay within their
financial means.
To advice the consumer of insurance coverage protection cost, and assist them in
selecting the most economically appropriate plan for their needs.
Characteristics of the automobile industry.
To assess the viability of the potential vehicles.
To provide a selection of top choices available in the entire automotive market at
wholesale cost, not limiting the customer to specific brands.
To provide Mechanical Certification to meet all safety standards and to ensure
vehicular longevity.
To provide personal budgeting support classes to help the consumer stay within their
financial means.
To advice the consumer of insurance coverage protection cost, and assist them in
selecting the most economically appropriate plan for their needs. The role of buying
centre is very important while buying the material. The buying center comprises of
people from the organization who have sufficient knowledge about the raw materials.
In the purchases of raw materials the major members are the purchase manager, safety
engineer, General Manager, vice-president of operations and mining engineer. These
people with their specialized knowledge prepare the initial draft of the specifications,
identify the raw materials that meet those specifications, shortlist the suppliers, have
detailed discussion about the products and negotiate their prices.
BUSINESS MARKETING
MURUGAPPA GROUP
Suppose an automobile manufacturer wants to go for buying of doorframes for manufacturing
the automobile, the following procedure will be followed:
The company will understand the need and characteristic of the need.
The company will search for possible suppliers and will contact them.
The supplier like TIMF will send their sales representative to interact with the
company personnel.
The sales representative will brief on the product specifications and suggest the
tonnage required after considering various factors like size of automobile, quality of
steel offering, size of sheets, flat or rolled.
Based on the interaction the buyer may ask one particular company for a proposal or a
group of companies to submit their proposals.
The buying may be done on the basis of evaluation of the proposals.
In case of one company being asked for a proposal there will be a series of
negotiations on price as well as specification till the final deal is struck.
The influencers in this decision maybe the administrative officer who looks after the
upkeep and administration of manufacturing department.
The Gate keeper will be the Public relationship department of the company and also
the secretary of the manager who filter the information reaching the buying centers.
The decider will be the director of the company who has the formal authority to
finalize the deal and actually will make the final decision. He will communicate his
decision to the manager who in turn will finalize the deal.
Once the deal has been finalized contract will be signed between the parties.
This is an example of a New Task in buying.
BUSINESS MARKETING
MURUGAPPA GROUP
4. Market segments and positioning:
Why India ?
The economy of India is emerging. The following table shows the ranking of India in the past four
years.
Rank 2010 2009 2008 2007
1 China China China China
2 India Thailand Thailand Thailand
3 Thailand India USA USA
4 Vietnam Vietnam Vietnam Indonesia
5 USA USA India Vietnam
6 Russia Russia Indonesia India
7 Korea Indonesia Korea Korea
Twin Advantages:
Scaling costs
Optimizing resources
Tube Investments of India Limited has segmented the market very clearly and has set up 15
manufacturing/assembly units across the country. These units are supported by marketing
offices that act as interface between customer requirements and production team. The
Company’s product segments are - Engineering, Metal Formed Products, E-Scooters, Fitness
Equipment’s and Cycles. TI has positioned themselves as market leader by their strong
control on finance and production plans . The Group is committed to the highest standards of
corporate governance in all its activities and processes . It is one of the first Indian corporates
to begin the process of transformation from being a family-owned business to a
professionally managed organisation ,these all have made to grow in a good position .
BUSINESS MARKETING
MURUGAPPA GROUP
Group has set a good aduit committee which controls the financial reporting ,each committee
has a board director to see through the affiars. The whistle blower policy, introduced has
strengthend the Murugappa Group's Corporate Governance Policy by providing employees
and other stakeholders an independent and safe communication channel to raise serious
concerns. The policy is being adopted separately by each company statutory board in the
Group. The policy will cover all Murugappa Group companies including associate companies
and joint ventures. Its scope extends to employees, customers, suppliers and contractors.
The group’s continuous efforts in innoviation’s has placed them as market leader.shared
values and interest have played a major role in the process of long journey.group has made it
itself self sufficient by setting various companies and their cutting of imports.
TUBES
TI is the market leader in precision tubes with 62 % market share by virtue of its quality and
application engineering capabilities.
DOORFRAMES
It is the market leader in roll formed car doorframes with 76 % market share by virtue of its
cost efficiency, association with key auto majors and roll forming capabilities.
CHAIN’S
TI is a leading player in automotive chain with 35 percent market share by virtue of its
quality, cost and delivery and association with two wheeler majors.
BSA CYCLES
The company is also a leading player in bicycle segment with 34 percent market share by
virtue of its brand equity, product development capability and proximity to the markets.
Recently, TI acquired a controlling stake in Sedis Group, France.
COMPONENT PARTS
TPI has been steadily growing in both ERW and CDW segments and its success stems from
market driven, customer oriented approach coupled with superior process design, delivering
high quality products and efficient customer service ensuring total customer satisfaction. TPI
has been supplying to major auto and component manufacturers in India and abroad such as
BUSINESS MARKETING
MURUGAPPA GROUP
Bajaj Auto ltd, TVS Motors Limited, Toyota India, Tata Motors Ltd, Hero Honda Anciliaries
and major Shock Absorber manufacturers like Delphi, Gabriel, Munjal Showa, Escorts ,
Endurance and others.
5. Products / Services strategies
MATURITY STAGE
The products of Tubes india are in Maturity stage of the product lifecycle. As the
products as already enters the maturity stage, the number of competitors entering the
market increase resulting in the decline in the growth of profits. The entry of new
entrats has affected business.The marketing strategy when a product is in maturity
stage of TI is:
i. Enter new markets
ii. Keep the existing customers satisfied
iii. Cut marketing, production and other costs to maintain profit margins.
The products of tubes are of high standards & latest technology,it has been since 80’s
in the market .
Life Cycle Analysis
In recent years concern for the environment has grown among national governments,
industry and the general public.
In consequence, there is pressure to improve manufacturing systems and change
consumer behaviour to progress towards sustainable development. Life Cycle
Assessment (LCA) has emerged as a leading tool for quantitative analysis of
environmental impacts of products and processes, which are often very complex.
LCA measures the impact on the environment over the course of a products’ lifetime,
from the parts and materials that are used in its manufacture through to its assembly,
shipment, use, and ultimate disposal.
Major drivers for the increased use of LCA include:
LCA provides a holistic understanding of environmental performance; the impact on
the environment can be reduced not just in certain process stages, but from the
viewpoint of the products’ total lifetime.
BUSINESS MARKETING
MURUGAPPA GROUP
Legislation
Governments are increasingly requiring LCAs to be carried out to demonstrate
compliance with existing legislation.
Marketing and Eco-Labels
LCA results can be used to promote products based on environmental criteria.
Environmental Product Declarations are eco-labels based on LCA results and are an
increasingly popular way of differentiating products from competitors by emphasising
environmental performance.
Improvements to Process and Product Design
NEW PRODUCT DEVELOPMENT:-
Tubes india continuously adapt company product portfolio to reflect our customers'
needs. TI has also developed a brand new material for future applications based on the
innovative combination of coatings and desgins. This project was realized by
company two Competence Centres and research labs.
BUSINESS MARKETING
MURUGAPPA GROUP
6. Channel and Distribution strategies
Procurement
All necessary inputs provided by one location shop floor only few input are
imported.The company has TQM system to check the quality and maintain a good
system.
The single supply chain function simplifies management of the Company’s routes to
market. The objective is to improve management of stock levels, from raw materials
to finished products. This is especially important given today’s high raw materials
costs. The function’s management will be able to strengthen its customer relationships
by improving delivery performance. The function will guide where products need to
be made and is responsible for ensuring deliveries are on time and in full.
To effectively compete in the global market and maximize profitability, we have
efficient and secure supply chains that meet the complex needs of the operations. Our
supply chain & operations professionals have deep insights into supply chain
transformation, sourcing, procurement, logistics, engineering, manufacturing, final
assembly and product service and delivery.
BUSINESS MARKETING
MURUGAPPA GROUP
Firm Infrastructure.
Dedicated management team
the company dedicated teams to manage the production, operational units,
marketing and sales of the group ,which focus on the relative fields
Home-grown Financial Support
The group has a good control on financial , which is majorly funded by the
murugappa family itself and very clear ,systematic records.
Formal Planning and Execution
Unionised
Competitive Pay structure
Fringe benefits
Divisional Monitoring
Indigenous Technical system and facilities
Appropriate R&D
Total Quality management
BUSINESS MARKETING
MURUGAPPA GROUP
7. PRICING STRATEGIES
Pricing determinants for industry
Secure necessary funds.
Locate and lease suitable manufacturing facility.
Purchase machinery, equipment and supplies.
Hire skilled employees to complete our team.
Set up shop and open for business.
Successfully penetrate targeted markets.
Secure contracts to achieve projected sales goals.
Become a profitable company.
Establish a solid reputation as an industry leader.
Pricing is a valuable strategic weapon that helps the companies to enhance and
capitalize on competitive advantages, defend areas of vulnerability, and even
cause beneficial changes in the competitors behavior. Hence, the bottom line of
the company is influenced by the pricing decisions, which also determine if the
company will succeed or fail. Strategy serves as a means by which an
organization achieves its goals. Pricing strategy is inter-related with the
marketing objectives and business strategy of the company.
8. Marketing/Sales.
Well knitted dealers network and sub-dealers.
Sales cum services showrooms
Effective advertisement and sales promotion through celebrities organizing events
BUSINESS MARKETING
MURUGAPPA GROUP
Product Awareness
Advertising is the main tool in the hands of the company so as to make the consumers aware
regarding the different products available in the market. Above all Advertising is a good
business. Advertising is the marketing force, which helps in mass selling and distribution.
The company gives their advertisements through Road hoardings, signboards Newspapers ,
events, sponsored race’s, industrial expo’s.
Credit Facilities & Discounts to dealers
Dealers, retailers, sub-dealers are also vital to be due to be given due importance. It is also
necessary to understand the dealers, retailers, and sub-dealers because they are one of the
important people who can push the sales of the company. It was found that dealers mainly
want that the company should give them credit facilities and discounts. Tl is the overall
winner in its category. And according to them the dealers are also the controller of the sales
to some extent. One of the important information is that most of the dealers ask the customers
to wait and assure him the delivery if the particular brand is not available. For Example,
Murugappa comes out with new schemes for dealers every month for special promotions and
celebrate advertisements. Special margins are made available to dealers from time to time.
Overall the company operates as many as half-a-dozen schemes at any given time. Moreover
the company ensures that dealer’s accounts are reconciled every quarter
Currently, the company services two kinds of customers: the more knowledgeable customers
in the B2B segment and the less knowledgeable ones in the B2C segment. Customers in the
B2B segment know the attributes of a good product. When they perceive murugappa’s
products as being good, a brand is created, without having to give the product a brand name.
Such customers actually drive quality because they can hold the supplier responsible for not
delivering on the brand promise. They can thus make a brand successful in the long run.
"When he sells to Tata Engineering, Maruti, GE or Ford, I don’t have to brand my product.
They will buy it on the basis of specifications, surface quality, cleanliness, physical
properties, etc." The customer is in a position to argue and discuss the relative merits of
different types and brands of doorframes. Therefore, sustaining the quality of the product
over time is of primary importance
BUSINESS MARKETING
MURUGAPPA GROUP
9. Consolidated SWOT analysis of company’s marketing operations
Strengths:
Strong Financial Support from group.
Brand name awareness – Most customers enthusiasts know the TI name.
TI is known as a high-performance leader in the part industry.
Good relationships with customers/dealers.
Research and Development capabilities: TI R&D department keeps them
up to date with the latest technologies involving manufacturing of parts.
Huge popularity and maintenance of customer loyalty.
Large Number of Acquisitions and Profitable Performance.
Weaknesses:
Accuracy of future analysis.
Lack of established manufacturing capabilities.
Lack of global operations.
The company’s operations are more oriented towards india.
Hence, it is slightly difficult to do business in other developed countries
No new market tapping.(North)
BUSINESS MARKETING
MURUGAPPA GROUP
Opportunities:
Internet/Mobile introduces new avenues to customer. This can save costs
of dealerships.
Strong Growth in Automotive sector is possible. Hence marketing
department can take advantage by introducing new innovations.
Diversifying in many other developing countries and acquiring more
companies.
New markets in India and around the world
Entry into the lower cost market may add to market share.
Entry into market where parts are the substitute product.
Threats:
As the scope of automotive industry increases there will be new
innovations every now and then thus giving customers large number of
options resulting in customer attrition.
Threats due to Recession.
Unsure trends in the parts industry.
More competitors entering the market.(China)
The popularity of less expensive substitute products
Shift of demand for higher priced to lower priced parts.
BUSINESS MARKETING
MURUGAPPA GROUP
10. Recommendations for the future
In the coming years competition will intensify more, so companies will have to fight
hard to woo the customers. Crucial role facilitates price control. In other words, lower
down its cost of production.
Company should improve there after sales service & should go for warranties for long
durations.
Mass production and increase the number of customers.
Diversify into construction and Retail Industry.
should adopt more innovative marketing strategies.
Company should also come up with the new schemes for the customers. This will
help in attracting more and more prospects.
Electronic media has a very effective reach in each and every potential household, but
TI is not using this media. So TI should stress on electronic media to beef up its sales.
The product must be available at most of the places keeping in mind that the
distribution cost should remain minimum.
BUSINESS MARKETING