SHRIKANT RAJU 82078 ABHISHEK NAGPAL 82085 ANAMIKA 82086 VARUN JAIN 82090

FLAT TYRES OF INDIA PVT. LTD.

GROUP 5

This case talks about one of the leading Tyre Manufacture Company in India; Flat Tyres of India Ltd.

The case emphasizes on options in regards to company increasing its distribution network either through setting up sales offices in various locations or by appointing C & F agents.

Having made a choice of appointing a C&F agent, the company lands up in a situation of loosing business with four efficient dealers in the Madurai region……

INTRODUCTION

Established in year 1962o Head office – Mumbaio Factory

Mumbai Nasik

o Sales office 30 offices & 3500 dealers

o Rated 3rd among the tyre manufacturers1. MRF2. Modi3. Flat tyres

THE COMPANY

Increase turnover from 400cr to 600cr – (by year 1990)o Increasing the distribution network.o Appoint C&F agent:

City – Madurai

THE VISION

OPENING

SALES

OFFICE

•COSTLY AFFAIR

•INCREASE IN MANPOWER

•LOGISTICS HANDLING

APPOINTMENT OF C&F

AGENT

SHALL

TAKE CARE

OF

•DISTRIBUTION

•EMPLOYMENT

•LESS COST

•REDUCED LOGISTICS OF COMPANY

CHOICE BETWEEN SALES OFFICE & C&F

FLAT TYRES OF INDIA LTD ruled out opening a company owned sales office:o It was too expensiveo Non feasible to open offices at many chosen locations

APPOINTMENT OF C&F AGENT IN MADURAI:o Would increase its sales from 16 lakhs to 20 lakhs per

montho Availability of supplies in C&F stocking point , better

supplies to the dealerso Goods shall remain the property of flat tyres of India.o Company sales officer shall have control over the C&F

appointed MANAGER , CLERKS TYPISTS , DELIVERY BOYS & DRIVERS.

THE FINAL VERDICT

C&F

COMPANY WAREHOUSE

SALES TEAMLOGISTICS DEALERS

ACCOUNTING

Direct agent of the company Provide with infrastructure Proper Co-ordination with Sales Team & Head Office Timely Informing about market updates, sales etc Adequate transport facility with local cartage and destination

freight services Payment Follow up & accounts reconciliation

ROLE OF C&F

Owned by Mr. Rama Swamy No.1 Tyre dealer in 1980 Market share of 40% Was C&F agent for JK industries Exclusive showroom for Dunlop India limited

SAMY AUTO PARTS

Very good past relationship Loyalty Support during recession 25% contribution to total turnover of Madurai

SELECTION OF SAMY AUTO PARTS

Company/DealerSamay Auto

Manickam & Co

SKS Auto Centre Auto Tyres Balu TyresKSS & Co

Ratna Auto Mobile Total

Apollo Tyres 42.80% NIL NIL 7.41% 28.57% 14.28% 7.41% 100.00%

Bombay Tyres 35.71% 17.85% NIL 10.71% NIL 35.71% NIL 100

Flat Tyres 50% 6.25% 3.13% 12.50% 18.75% 3.25% 3.13% 100.00%

Dunlop India 51% 2.13% NIL 4.25% 8.51% 34.04% NIL 100.00%

Goodyear 26.66% 6.66% 6.66% 13.33% 26.66% 13.33% 6.66% 100.00%

JK Industries 88.88% 3.70% NIL NIL NIL 7.40% NIL 100.00%

Modi Rubber 16.90% NIL 7.04% 5.63% 45.06% 5.63% 19.07% 100.00%

MRF 20% 26.66% 6.66% 20% 13.33% 6.66% 6.66% 100.00%

Vikrant 50% NIL NIL 12.50% NIL 25% 12.50% 100.00%

Others 83.33% NIL NIL 16.66% NIL NIL NIL 100.00%

Samay Auto

Manickam & Co

SKS Auto Centre Auto Tyres Balu Tyres KSS & Co

Ratna Auto Mobile

Over all Sales 39.02% 7.13% 3.66% 9.75% 20.73% 12.19% 7.13%

MARKET SHARE & CLIENT LIST OF DEALERS IN MADURAI

HORIZONTAL CONFLICT• Opposition for appointing Samy Auto as C&F agent• Conflict has reached the third stage

o All the distributors strongly felt unhappy for Samy being chosen as C&F agent

• Important for company to resolve this crisiso Before it reaches Manifest stage

CONFLICT

What is that Mr. Kailash could have done to resolve the crisis.

Was there a third option available to Flat Tyres of India Ltd for increasing the distribution network?

Why were the other dealers unhappy with “Samy Auto Parts” being chosen as C&F agent?

CASE QUESTIONS

THANK YOU