distibution channel project

8/7/2019 distibution channel project

1/27

TYRE SEGMENT SURVEY REPORT

PIAGGIO


2/27

INTRODUCTION

Sample survey carriedas apart of captive research was

implemented inpune city focusing on various tyre

distributors/dealers.

The sample survey was carried out in order to understandthe transportationmodeexercised inmarket andalso to

understand thedistributionmodelas wellas to measure

the cost benefit analysis.

Primaryas wellas secondary research process wereimplied for the same.

Questionnairemodel was preparedand was tested over

the sample


3/27

INDUSTRY

COSWARE

HOUSE

C/F

Central

WH

COSDEALER

TYRE DEALERS

RETAIL

END CUSTOMERS

LTV/407,709

LTV/407,709

LTV

HTVHTV

WARE

HOUSE

&C/FS

HTV

Regional warehouse

Counter selling


4/27

UNDERSTANDING SUPPLY CHAIN

Tyres after manufacturedare stored in the warehouse owned by thecompany.

Hencedispatched to various regional ware house and C&F agents

Themode of transportationadoptedat this stage is through

HTVFrom the ware house use of htv is processed in order to supply to local

godowns anddistributors.

Approach towards dealers anddistributors are built usingltv

Direct supply from localgodowns for retail business is also witnessed,medium beingltv

Direct purchase by theend customer ,use ofltv are veryless at this

stage.


5/27

FIELD ANALYSIS

SEGEMENT TYRE AREA COVERED PUNE

CITY,FURSANGI,CHAKHAN,WAGOLI,SASWAD ,BHOSARI ,LONI,

HADAPSAR ,KHADKI .

PRODUCTS STUDIED GOODYEAR,BRIDGESTONE,MRF,JKTYRE,APOLLO ,MICHELLIN ,TVS,

GT.

MET DEALERS, DISTRIBUTORS, RETAIL

STORES,COMPANY WAREHOUSE

VEHICLESOBSERVED APE3W,APETRUK,TATA

ACE,BAJAJ,MINIDOR,407.


6/27

TYRE SIZE STUDY & LOADING PATTERN

TYRE SIZE APE3W TATA ACE

1000*200(trucks) 13 26

900*20(bus) 13 26

825*16(709TATA) 30 74

750*20(407TATA) 40 80

600*16(Jeep)) 52 100

700*15( Minidor) 60 1255.90*15(minibus) 48 120

450*10(omni,6seater) 90 2200

185/R16,R15(sumo) 50 100

215/R15,R14(tempo) 50 ---------

165/R13 (Indica) 66 100

145/70(Passenger cars) 60 110

TRACTOR&JCB(12*4*28,13*6-

28,13*24)3 8


7/27

Tyre pattern

Rad

ial

:

1000*200(trucks)

900*20(bus)

825*16(709TATA)

750*20(407TATA)

600*16(Jeep))

700*15( Minidor)

5.90*15(minibus)

450*10(omni,6seater)

185/R16,R15(sumo)

215/R15,R14(tempo)

165/R13(Indica) 145/70(Passenger cars)

TRACTOR&JCB(12*4*28,13*6-28,13*24)

825*16

750*20

Tata 407,709

165/r13

Indica

900*20

Bus tyres

145/70(passengercar)

HigherSales ratio:


8/27

Stacking pattern Since the orders vary the supply had to be in random order the

vehicles have to carry tyres ofdifferent patternall together.

Tyres areplaced verticallyas wellas horizontally to occupyminimum space.

Depending upon theareaand order vehicles are used. For smallorders three wheelers are used.

For tyre size :

5.90*15(minibus)450*10(omni,6seater)

185/R16,R15(sumo)

215/R15,R14(tempo)

1

65/R1

3(Indica)145/70(Passenger cars)

for tyre ofabove size 3wheeler vehicles areused very often.


9/27

VEHICLE OBSERVATION

LOADING PATTERN


10/27


11/27


12/27

Dealer profile: Goodyear Tyres

Number

ofstoresSales/orderperday

Modeoftransport

ation

Deliverycost

Number of

vehiclesVehicle status Area

coverageVehicle

brandMax sales

Max Min Owned Hired Retail Distribu

tor/WH

4 14 3 3w,4w 8rs/km 5 5 60kms Tata

(407,709)

,ace,ape3wheeler,

minidor,

mahindr

a,

8/day 280/da

y


13/27

CEAT TYRES

Number


Modeoftransport

ation

Deliverycost

Number of


coverageVehicle

brandMax sales

Max Min Owned Hired Retail Distributor

4 12 3 3w,4w,tr

uck

8rs/km 8 - 8 70km Tata

407,709,a

ce,ape3wheeler,mi

nidor,tru

ck

6170


14/27

MRF TYRES

Number


Modeof

transport

ation

Delivery

costNumber of


coverageVehicle

brandMax sales


7 16 2 4w 10rs/km 14 14 80kms Tata

407,709,t

rucks

10 300


15/27

APOLLO TYRES

Number


Modeof

transport

ation

Delivery

cost

Number

of

vehicles

Vehicle status Areacoverage

Vehicle

brandMax sales


4 14 2 3w,4w 8rs/km 8 - 8 70kms Tata

ace,407,

709,ape3w,minid

or

14 400


16/27

MICHELLIN TYRES

Number


Modeof

transpor

tation

Delivery

costNumber

of

vehicles

Vehicle status Areacoverage

Vehicle

brandMax sales

max Min Owned Hired Retail Distributor

3 12 0 3w,4w 6rs/km 6 - 6 50kms Tata 407

709,ape,

mahindra

6 150


17/27

General Tyre Stores

Number


Modeof

transport

ation

Delivery

costNumber

ofvehiclesVehicle status Area

coverageVehicle

brandMax sales

Max Min Owned Hired Retail Distribu

tor

8 7 2 3w,4w 5rs/km 4 - 4 40kms Minidor,

ape,mah

indra

23 ---


18/27

COST BENEFIT ANALYSIS

APE3WDRIVERS PAY 4500

EMI 3000

INSURANCE 300

TYRE COST 300MAINTENANCE COST 400

FIXEDCOST 8500

MILEAGE 28

KMS/DAY 90

DIESEL RATE 34

FUEL COST 2800

VARIABLECOST 2800

TOTAL OPERATING COST 11300


19/27

DRIVERS PAY 6000

EMI 5000

INSURANCE 500

TYRE COST 400

MAINTENANCE COST 800

FIXEDCOST 12700

MILEAGE 20

KMS/D

AY120

DIESEL RATE 34

FUEL COST

VARIABLE COST 5300


APETRUK


20/27

DRIVERS PAY 7000

EMI 6000

INSURANCE 700

TYRE COST 600

MAINTENANCE COST 1200

FIXEDCOST 15500

MILEAGE 17

KMS/DAY 120

DIESEL RATE 34

FUEL COST 6000

VARIABLE COST 6000


TATA ACE


21/27

OPERATING COST PER KMS

APE3W

4.8RS/KM

APETRUK

5.7RS/KM


22/27

ADVANTAGE

APE3W OPERATING

COST IS 30% LESS

THAN TATAACE

APE3W OPERATING

COST IS 30% LESS

THAN TATAACE

APETRUK OPERATING

COST IS17% LESS

THAN TATAACE

APETRUK OPERATING

COST IS17% LESS

THAN TATAACE

TATA ACE OPERATING

COST IS6.8RS/KM

TATA ACE OPERATING

COST IS6.8RS/KM


23/27

NOTE:

Operating cost has been calculated through summing up

total fixed cost and variable cost.

Operating cost per km has been obtained by calculating

the total operating cost and workingdays inmonth andnumber of kms runper day.

Toatalnumber of workingdays has been takenas 26 ina

month.


24/27

OBSERVATIONS

It was observed that themode of transportationbyltv was mostlypracticed in secondary stage.

Among threewheelers ape3wheeler hadlarge share compared toother threewheeler s like Bajaj ,Mahindra ,Atul shakti

Use of HTV &TATA 407,709 was more compared to other vehicles as

orders used to be in bulk and in order tomeet theneed ofdealers/distributors.


25/27

STANDING IN TYRE MARKET

APE3W

APETRUKTATAACE

BAJAJ

MAHINDRA


26/27

CONCLUSION

Through the sample survey it was observed that the ape 3w wasleadingamong threewheelers inproviding service for supply of tyre.

Among4wheelers Tataacewas thepreferred one

Minidor and407 as wellas 709 werealso used very often andprovidingagood competition to apeandTata.

In case of 407 the vehiclewas not being fully utilizedas the truckswherenot fullyloaded, theywere carrying theload same as of Tata

ace . Hencewas observed that the operating cost per km ofape 3 wheeler

andape truk was lesser than theTataace


27/27

THANKYOU

distibution channel project

Documents

Transcript of distibution channel project