CONTENTS

Cover Page

Preface

Acknowledgement

Executive Summary

Research Objective

Introduction of Bearing Industry

- Brief Profile

- Products

- Achievements

- Project Detail

- Brief Description of Work

Research Methodology

Data Analysis

Facts and Findings

Conclusion

Recommendation and Suggestion

Appendix(Questionnaries)

Bibliography

A Summer Training Project Report

On “SALES PROMOTION”

Training Undertaken at

“NATIONAL ENGINEERING INDUSTRIES LTD. JAIPUR”

Submitted in partial fulfilment for the Award of degree of

Master of Business Administration

(2012-2014)

Submitted By: - Submitted To:- Saurabh Garg The Director MBAPart 3

rd sem

PREFACE

Bearing industries plays an important role for automobile and many other

industries.

Technologies progress in this field strengthens the competitive position in the

domestic market as well as in Global market, and fulfilling the demand of the

customer through supply management has been a major component of

competitive strategy to enhance organization productivity and profitability.

In this project I have found how Two Wheelers Segment is important for the

bearing industry, what are the Bearing demands of Two Wheelers segments of

different companies and how much NBC supply to them and what are the

application of bearings of various types in different parts of the vehicle of

different companies in Two Wheelers segment.

Working under this project I have gained the knowledge about whole bearing

industries.

Here I have learnt about the use of bearing in different sectors and I have also

gained knowledge about the application of No. of bearings in a single vehicle and

how a supply chain management plays a vital Role in the success of the economy

and various other industries.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. RAJESH RUNGTA

Designation AGM Deptt. Marketing for guiding me right from the inception

till the successful completion of the project. I sincerely acknowledge him for

extending their valuable guidance, support for literature, critical reviews of

project and the report and above all the moral support he had provided to

me with all stages of this project.

I would also like to thank the supporting staff Prof. C.M. Choudhary

Management Department, for their help and cooperation throughout our

project.

Saurabh Garg

EXECUTIVE SUMMARY

OBJECTIVE

This project is done to Identify the application details of bearing in two wheeler

vehicles segments of different companies in different parts and to find what are the

bearing demands of 2 Wheelers segments of different companies and how

much NBC supply to them and what are the application of bearings of various

types in different parts of the vehicle of different companies in 2 Wheelers

segment.

WORK DONE

For this market surveys and fieldwork was done by me, visit to different

automobile companies, analysis of data, tabulation of data and finalization of data

was done by me.

FINDINGS

Data related to application of bearing in different parts of different vehicles of

various companies in Two Wheeler vehicles, and also different marketing

aspects of the company.

“Critical success factor that comes out of the study are as follows”

Importance of information: timely & accurately

Reduction in cost.

Responsiveness of the company.

Accurate & collaborative forecasting

OBJECTIVE

“To Identify the various aspects of marketing of bearing in Global

Market & associate the opportunity in South African Market”

INTRODUCTION OF COMPANY

Company Profile

NATIONAL ENGINEERING INDUSTRIES LTD., the renowned industrialist, late Shri

B.M. Birla, under the name of “National Bearing Company Limited”, founded JAIPUR in

the year 1946 as a pioneer industry in the field of bearing manufacture. The first bearing

was manufactured in 1950 with a modest start of 30,000 bearings in 19 sizes. The

company is now manufacturing nearly 3.8 million bearings per month in over 500

different sizes ranging from 6 mm bore to 1300 mm outer diameter and has the capacity

to manufacture bearings up to 2000 mm outer diameter. At NEI, the development of

bearings is a never-ending job. With ever increasing activities and grant of industrial

licenses for other vital industries and manufacturing of Roller Bearing Axle Boxes for

Railway Rolling Stock, Steel Balls, Tapered Roller Bearings, Spindle Inserts etc., the

name of the company was changed in 1958 to "National Engineering Industries Ltd."

retaining its original trade mark NBC.

The industry is spread over 118 acres of land in Jaipur and 56 acres in Gunsi (Newai).

This is the only unit in the country manufacturing wide variety and range of bearings

such as Ball Bearings, Steel Balls, Tapered Roller Bearings, Cylindrical Roller Bearings

& Axle Boxes for Railway Rolling Stock including Spherical Roller Bearings, Cartridge

Tapered Roller Bearings and Large Diaz special Bearings in separate fully equipped

factories. The development of National Engineering Industries Ltd., was pioneered with

a theme "Indigenisation and Self-reliance".

NBC Bearings are widely used by 2 and 3 Wheelers, Cars, Trucks, Tractors, Electric

Motors, Railway wagon, Coach & Locomotive manufacturers as Original Equipment and

Steel Mills, Heavy Engineering Plants, Bulldozers, Shovels, Tillers and Thermal Power

Plants all across the country. The development of NEI ltd. was pioneered with a theme

“Indigenisation and self – reliance “

PRODUCTS

PLANTS OF NBC

PLANT AT JAIPUR:

(i). Ball Bearing:

Precision Ball Bearings from 6 mm bore to 75 mm bore diameter are manufactured on

state of the art manufacturing facilities with in-process and post-process gauging in

grinding and centrally air conditioned assembly lines with auto gauging and testing

equipment. The latest advanced techniques for manufacturing and Quality Assurance

are implemented to meet the rapid increase in demand for Quality, diversity of

specifications and new types of bearings.

This Division is spread over a covered area of 14,694 Sq. Meters.

(ii). Steel Ball:

Precision Steel Balls up to 25 mm diameters for NBC Bearings are manufactured on

precision grinding and lapping machines to achieve super finished surface, accuracy

and roundness as per ISO standards.

This Division is spread over a covered area of 4,700 Sq. Meters.

(iii). Tapered Roller Bearing:

Precision Tapered Roller Bearings are manufactured in Inch and Metric series from

15.875mm bore to 95.25mm bore with technology obtained from our earlier collaborator,

Federal Mogul Corporation, USA and now with NTN Corporation, Japan. All major

Automobile manufacturers in the country as Original Equipment use these bearings.

This Division is spread over a covered area of 11,652 Sq. Meters.

PLANT AT GUNSI (NEWAI): Established in the year 1980-81 as an expansion project of NEI Ltd. The factory is equipped with fully automated grinding lines with electronic in process & post- process gauging and centrally air-conditioned assembly lines with auto gauging and test equipments for quality and reliability of the products. The plant is spread over a covered area of 7,200 Sq. Meters.

PLANT AT MANESAR: NEI has set up its third Ball Bearing manufacturing plant in the fastest growing industrial town of Manesar in Haryana. The plant is having a covered area of 5200 sq. meters. With the most advanced and sophisticated machines imported from reputed manufacturers from Europe and Japan.

RESEARCH & DEVELOPMENT AT JAIPUR :

(a)

Design & Development: Complete in-house facility for design development of all types of bearings and tooling is available. The design of all types of bearings is done on ProEngineer 3D Modeling & Analysis Software. Complete engineering and research facility is available to solve intricate problems with expert advice on design, development, manufacturing, installation and maintenance of bearings. With the signing of the technical collaboration agreement with NTN Corporation, Japan & BRENCO Inc of USA, the capability to offer finest engineering services in the bearing industry has enhanced. Services of team of experienced engineers are available for selection of bearing as per application.

(b)

Machine Building: NEI has the capability of machine building to design, develop and manufacture special purpose CNC Grinding Lines, HT Lines, Material Handling Equipments and other special purpose machines which have been made for its captive use to keep pace with latest technology. A well-equipped electronic design, development laboratory with all testing facilities supports the Machine Building Division. Machine Building has the capability and supports the Manufacturing Divisions by overhauling and retrofitting of the existing equipments, resulting in upgraded quality and improved productivity. R&D Division is spread over a covered area of 2,007 Sq. Meters.

SAP - ERP: In order to reengineer and integrate the Business processes for sales, production, materials and finance, NEI has successfully implemented SAP- ERP. By use of this Package, our processes now conform to international standard.

(iv). Railway Bearing:

(a) Roller Bearing in Axle Box: With the production of Roller Bearings and Axle Boxes since 1952, the company has fully met the requirements of the Indian Railways (one of the largest systems of the world) by designing and developing Axle Boxes and bearings for fitment to Locomotives manufactured by Diesel Locomotive Works, Chittaranjan Locomotive

Works, various wagon builders, the ICF broad and meter gauge coaches. Over a million NBC bearings and boxes are in service with the Indian Railways. The development of completely indigenised Axle Boxes and bearings for the high speed Rajdhani Locomotive, the Yugoslavian and Egyptian Railway wagons are the highlights of the design capabilities at NEI. On date more than 100 types of Axle Boxes & Bearings have been manufactured.

(b) Spherical Roller Bearing: The manufacturing of Spherical Roller Bearings was started in the year 1975-76 for fitment to broad gauge and meter gauge passenger coaches with designs, technology, machines and equipment procured from the collaborators.

(c) Cartridge Tapered Roller Bearing: For fitment to the new BOX-IN Uprated Wagons designed by the RDSO, NEI is the only manufacturer in the country to indigenise these bearings to a high percentage under collaboration with the largest manufacturer of these bearings in the world. Production of these bearings commenced in the year 1984. These bearings are grease packed and require no field lubrication for a period of 7 years. This Division is spread over a covered area of 4,855 Sq. Meters.

(v). Large Diameter Bearing: Self-sufficiency in steel is the call of the day, so is the importance of bearings in Steel Mills Equipment. NEI has the distinction of being one of the ten manufacturers of these bearings in the world, who can manufacture large diameter bearings up to 2000 mm diameter. Mr. G.P. Birla released the largest bearing manufactured by NEI for fitment to the Plate Mill of Rourkela Steel Plant in September 1985. This 4-Row Tapered Roller Bearing measures 1300 mm dia and weigh 4.39 tons. The large diameter bearings are mainly manufactured out of case carburising steel, heat treated on special equipment and furnaces developed by NEI. Precision grinding is done to close tolerances on CNC Twin Spindle Programmable Berthiez Machine for bearings ranging from 500 to 2000 mm diameter with electronic sizing and numerical display.

Production of these bearings started in 1975 and to date over 100 different types of special large diameter bearings have been manufactured and successfully used, saving considerable foreign exchange for the country. The Large Diameter Bearings Division is spread over a covered area of 2,508 Sq. Meters.

Quality

At NEI, They have embarked upon system improvement and implemented modern

concepts of Total Quality Management. The company has been accredited with a number

of certifications like ISO/TS 16949:2002 and ISO 9001:2000 by BVQI for the design,

development, manufacture & supply of Ball Bearing, Tapered Roller Bearing and

Cylindrical Roller Bearings, Spherical Roller Bearings, Cartridge Tapered Roller

Bearings, Railway Rolling Stock and Spares in addition to the ISO 14001:1996

certification for ensuring a clean and pollution free environment.

Association of American Rail Roads has approved NEI and granted AAR Approval for

design, manufacture and supply Cartridge Tapered Roller Bearings for Freight Wagons.

We are the leading suppliers of Cartridge Tapered Roller Bearings to Indian Railways since

last twenty years

PRODUCTS RANGE OF BEARINGS MANUFACTURED AND

EXPORTED UNDER THE TRADE MARK OF NBC INCLUDES:

• Ball Bearings • Tapered Roller Bearings • Cylindrical Roller Bearings • Axle Boxes Spherical • Roller Bearings • Cartridge Tapered Roller Bearings • Large Dia Special Bearings

NBC Bearings are widely used by two and three Wheelers, Cars, Trucks, Tractors,

Electric Motors, Railway Wagons, Coaches & Locomotives and also in Steel Mills,

Heavy Engineering Plants, Bulldozers, Shovels, Tillers and Thermal Power Plants all

across the country and overseas.

BALL BEARING

TYPE OF BALL BEARINGS: -

Radial Ball Bearing

Angular Contact Bearing

Self-Aligning Two-Row Ball Bearing

Belt Tensioned

TAPERED ROLLER BEARINGS

TYPE OF TAPERED ROLLER BEARINGS: -

Single Row Tapered Roller Bearing

Double Row Tapered Roller Bearing

NO. OF SIZES: 76

Manufactured at an ultra modern plant, with technology obtained from our earlier

collaborators, Federal Mogul Corporation, USA and now with NTN Corporation, JAPAN,

these bearings are used by all major automobiles, truck and tractor manufacturers in the

country as original equipment.

The above bearings are manufacture in inch & metric series form 15.857mm bore to

95.25mm bore. For TRB NEI has Automatic Grinding Lines with in-process & post

process gauges. Complete automation by Flex link conveyor. Crowning provision on

Inner (Cone) & Outer (Cup). Complete Automatic Line for Roll Grinding, Super finishing,

Inspection and Sorting imported from NTN, Japan automatic checking & prevention of

inverted roller & roller missing. Automatic checking of stand height, noise and run outs.

For TRB, NEI has technical collaboration with NTN Corporation JAPAN, all major

automobile manufacturers as OEM original equipment uses the above bearings.

SPHERICAL ROLLER BEARING-

The above bearing is fitment to broad & meter gauge passenger coaches, for

manufacturing SPHERICAL ROLLER BEARING design, technology, and equipments is

procured from NEI collaborator (NTN JAPAN).

Originally developed in collaboration with Swiss leaders FAG-SRO. Vital for broad

gauge and meter gauge coaches manufactured by ICF, Chennai and RCF, Kapoorthala

for the Indian Railways. Now new sizes are being developed with the help of NTN

Corporation, JAPAN

SPHERICAL ROLLER BEARINGS: -

(Railway Bearing)

NO. OF SIZES: 5

CYLINDRICAL ROLLER BEARINGS &

AXLE BOX ASSEMBLY: -

NO. OF SIZES: 58

Developed by NBC for the Indian Railways for use in rolling stocks. Excellent

performance even in the high speed Rajdhani locomotives, Yugoslavian and Egptyia.

CARTRIDGE TAPER ROLLER BEARING-

Successful Track record in the Railways for the past 30 years, these require no field lubrication. Developed in collaboration with BRENCO Inc. USA, these bearings are being used in all broad gauge wagons of Indian Railways.

This is new box in for upgraded wagons design by RDSO, NEI only manufacturer with

the collaboration with largest manufacturer of the world. Production of this bearing

started from 1989. These bearing are grease packed and require no filed lubrication for

period 7years exporting Cartridge Tapered Roller Bearings for wagon application to M/s

BrencoUSA since 2004.

CARTRIDGE TAPERED ROLLER BEARINGS: -

(Railway Bearing) NO. OF SIZES: 1

NEI has Automatic Grinding Lines with in process gauges to ensure high accuracy

and surface finish. Complete automation by Flex link conveyor. Facility for crowning

on inner race and outer race

LARGE DIA METER BEARING

LARGE DIA SPECIAL BEARINGS: -

Single Row & Double Row Ball, Cylindrical and Four Row Tapered Roller Bearing

NO. OF SIZES: 132

NEI is one of the top 10 manufacturers of LDA bearing & its plant can produced

up to 2000mm Dia meter bearing also, The largest bearing produced by the plant was

4 row tapered roller bearing with 1300mm Dia and weight 4.39 tons.

NEI has Single &Double Spindle Internal and External Grinding. To Capable of Grinding

1000 mm Dia. to 2000 mm Dia.

LONG TERM OBJECTIVE 2008-2014

TO ACHIEVE BY THE YEAR 2013-14

1. A TURN OVER OF RS. 10000 Million 2. EXPORT SALES AS 20% OF TURNOVER &DEVELOP OE CUSTOMERS FOR

EXPORT SALES 3. CONTRIBUTION FROM NEW PRODUCT DEVELOPED IN LASTFIVE YEARS

AT 15% OF SALES TURNOVER 4. INCOME FROM SERVICES TO RS 300 Million 5. INCOME FROM ALLIED ENGINEERING PRODUCTS TO RS 50 Million 6. ROI Pre Tax 24.4% Post tax 17.1% AND BECOME A DEBT FREE

COMPANYCUSTOMER SATISFACTION INDEX OF 95%

ANNUAL OPERATING PLAN 2008-09

TO ACHIEVE

1. TURN OVER OF Rs. 6005.50 Million. 2. EXPORT SALES AS 6.40% OF TURNOVER 3. CONTRIBUTION FROM NEW PRODUCT DEVELOPED IN LAST FIVE YEARS

AT 10% OF SALES TURNOVER 4. INCOME FROM SERVICES TO Rs. 155 Million

ROI - PRE TAX > 20.

Milestones

1946 - Company Established as National Bearing Company (NBC) Under

Technical Collaboration with Hoffman, UK

1950 - Ball Bearing Production Started.

1951 - Railway Bearing Production Started

1957 - Company name changed to National Engineering Industries ltd.

- (Retained NBC as Trade Mark)

1967 - Tapered Roller Bearings Production Started Under Technical

Collaboration with Federal Mogul Corporation, USA

1971 - Established Research and Development Division

1971 - Established MachineBuilding Division

1975 - Large Diameter Special Bearings Production Started

1976 - Spherical Roller Bearings Production started with Technical Know -

- How From FAG-SRO

1981 - Separate Factory for Ball Bearing at Gunsi (Newai)

1982 - Cartridge Tapered Roller Bearings Production Started in Technical

Collaborations with BRENCO Incorporated, USA

1985 - Largest Bearing with outer diameter 1.3 meter and weight 4.39 tons

(4390 Kgs) Produced

1985 - Technical Collaboration with NTN Corporation of Japan for Ball,

Cylindrical and Spherical Roller Bearings

1990-95 - Modernization in Three Phases

1995 - ISO – 9001 Certificate

1996 - Technical Collaboration with m/s Izumi Kinzoku Kogyo Co. ltd

- Japan for Machine Retrofitting/Remanufacturing and Overhauling o

- Grinding and --Super finishing Machines for Bearing Race.

1997 - Technical Collaboration with NTN Corporation of Japan for Tapered

Roller Bearing and Hub Bearings

1998 - IV Phase – Modernization Started

1999 - Implemented 1st Phase of SAP – ERP Solutions

2000 - QS – 9000 and ISO -14001Certification

2003 - TS – 16949Certification

2005 - AAR Certification M – 1003 for Cartridge Tapered Roller Bearing

2006 - New Manufacturing Facility at IMT Manesar (Haryana)

Departments at NEI Ltd, Jaipur

Personnel Division

Taper Division

Research & Development Division

MachineBuilding

Large Diameter Bearing Division

Railway Division

Bearing Division

Ball Department

Ring Rolling Division

Quality Assurance

Metallurgy Division

Sales Department

Budget Department

Accounts Department

ERP/EDP

SISTER CONCERN

Hindustan Motors ltd.

Car plant (lancer), Chennai

Power Product Division, Hosur

Power Unit Plant (ISUZU engines) India

Automobile Division, Uttarpare

GMMCO ltd, Chennai

Hukumchand Jute and Industries ltd, Amlai

Orient Fans, Kolkata

Orient Paper Mills, Amlai

Orient Paper and Industries ltd, Kolkata

Orient Cement, Devapur (A.P.)

Hyderabad Industries Limited, Hyderabad

Birlasoft, Noida

Overseas Companies

Panafrican Paper Mills (EA) Nairobi

NigeriaEngg. Works (NEW) Nigeria

Rivers Vegetable Oil Company ltd, Nigeria

Plants Area

Collaborations

BRENCO Incorporated, USA

Since 1982, for Cartridge Tapered Roller Bearings for Railway wagons and

locomotives

NTN Corporation, Japan

Since 1985, for Ball Bearings, Cylindrical and Spherical Roller Bearings, Clutch

Release Gen- 1, Gen- 2 Wheel BearingsSince 1997, for Tapered Roller Bearings

Izumi Kinzoku Co. ltd, Japan

Since 1996, for re- manufacturing, retrofitting and overhauling of grinding and super-

finishing machines for bearing races.

NBC Bearings are used by all major auto OE Customers in

India Like :-

BAJAJ AUTO

YAMAHA MOTORS LIMITED

KINETIC ENGINEERING

HERO HONDA MOTORS

ROYAL ENFIELDINDIA

TVS MOTOR INDIA(P)LTD

HMSIL

BAJAJ AUTO

FORCE MOTORS

SCOOTERS INDIA LIMITED

MAHINDRA & MAHINDRA LTD.

ATUL AUTO LIMITED

MARUTI UDYOG LIMITED

HINDUSTAN MOTORS

FORCE MOTORS

MAHINDRA & MAHINDRA LTD.

OTHER MAIN CUSTOMER

INDIAN RAILWAY

CROMPTON GREAVES

KIRLOSKAR

GE ELECTRICALS

MICO

TEXMACO

NBC Bearings Exports in following Countries

USA

Japan

Italy

Sri lanka

Indonesia

Bangladesh

Singapore

Nepal

Peru

Pakistan

Brazil

CERTIFICATIONS OF NBC

Awards & Achievement

NEI has bagged some of the most prestigious awards in its field in

various categories:-

Challenge India Support (Engine GP) Award for 2003-04 by Honda

Motorcycles and Scooters India ltd.

Direct On Line (DOL) Award, 2005 by M/s Hero Honda Motors ltd.

Customer’s Delight Award, 2006 by Eicher Motors ltd.

National safety Award from The Government of India

NEI NETWORK IN INDIA

BRANCH OFFICE HEAD OFFICE

DELHIJAIPUR

MUMBAI

PUNE

CHENNAI

WORKSREGISTERED OFFICE

JAIPUR KOLKATA

MANESAR

Current & Future Analysis

The market for bearings in Germany is estimated at US $ 2.7 billion for 2008 and is

projected to be US $ 2.9 billion in 2009. The market is further projected to reach US $

3.1 billion by 2010, growing at a compounded annual rate of 3.8%, during the period

2001-2010.

Ball Bearing is the largest and the fastest growing segment in the German bearing

market and is estimated at US $ 1.3 billion for 2007. The segment is projected to reach

US $ 1.5 billion by 2010, expanding at a CAGR of 4.1%, during the analysis period

2001-2010.

Market Overview

Germany is a leading producer and exporter of machinery and automobiles and is

characterized by a highly competitive market. The market for rolling bearings includes

three major End-users- automobile industry, mechanical engineering, and electric

industry. Automobile and electric sectors in the region consume bearings heavily.

Manufacture of rolling bearings for these sectors is through series production. This kind

of sales offers low profitability and pricing needs to be reasonable low. The machinery

business reflects a different and better picture, as these manufacturers buy standard

bearings in relatively smaller qualities. This kind of production and sales involves higher

profitability and also offers more stable income.

PROJECT DETAIL

STUDY ON SALES PROMOTION IN MARKETING”

INTRODUCTION

“Marketing is a social and managerial process by which individuals and Groups obtain

what they need and want, through creating, offering and exchanging products of value

with others”.

: - PhilipKotler.

Marketing includes all those activities having to do with effecting changes in the

ownership and possession of goods and services. It is that part of economics which

deals with the creation of time, place and possession utilities and that phase of business

activity through which human wants are satisfied, by the exchange of goods and

services for some valuable consideration.

- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into product

and service specifications and then in turn helping to make it possible for more and

more of consumers to enjoy more and more of these products and services.

Marketing Mix

Marketing mix is the set of marketing tools that a firm uses to pursue its marketing

objectives in the target market.

McCarthy has popularized a four factor classification of marketing tools known as the

4P‟s of the marketing mix. They are:

Product

Price

Place

Promotion

Product:

Product stands for the firm‟s tangible offer to the market, including the product quality,

design, features, branding and packing. It deals with new product development, product

life cycle, product mix, product lines, branding and associated services to a product.

From the customer‟s point of view, it helps in satisfying the customer‟s needs and

wants.

Price:

Price is the monetary value of the product. Price deals with selecting the pricing

objectives, setting the price, discounts, allowances, payment policies and credit terms. It

is very important to the customers as it decides the cost the customer has to pay to gain

the product value.

Place:

This marketing tool stands for the various activities the company undertakes to make

the product accessible and available to the customer. It involves market size, channel

selection and management, storage and physical distribution.

Promotion:

Promotion stands for various activities the company undertakes to communicate and

promote its products to the target market. It involves communication programs i.e. direct

marketing, advertising, sales promotions, public relations and motivation of sales force.

To the customer this tool provides knowledge and information.

BRIEF DESCRIPTION OF WORK

The Promotion Mix of a company includes the following tools;

Advertising:

It is any paid form of non-personal presentation and promotion of ideas, goods or

services by an identified sponsor.

Direct Marketing:

It refers to the use of mail, telephone and other non-personal contact tools to

communicate with or solicit a response from specific customers and prospects.

Personal Selling: Face to face interaction with one or more prospective purchasers

for the purpose of making a sale refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a company‟s

image or its individual products.

Sales Promotions:

The short-term incentive to encourage trial or purchase of a product or service refers to

sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an

incentive to buy. Since sales promotion directly push up the sales, increasing number of

companies are undertaking sales promotion activities.

Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used to attract new

customers, to reward loyal customers and to increase the repurchase rates of

occasional users. Sales promotion usually targets brand switchers because non-users

and users of other brands do not always notice a promotion. Sales promotions are thus

also seen as a tool for breaking down loyalty to other products.

Sales promotions also let manufacturers adjust to short term changes in supply and

demand and differences in customer segments. They also let manufacturers to

experiment by varying prices. Sales promotions also lead to greater

consumerawareness of prices.To use sales promotion, a company must set objectives,

select the right tools, develop the best program and implement it and evaluate the

results.

Objectives of Sales Promotion

The specific objectives set for sales promotions will vary with the type of the target

market. For consumer promotions, objectives include encouraging purchasing of larger

sized units, building trial among non-users and attracting switchers away from the

competitor‟s brands. For trade promotions, objectives may include; including retailers to

carry new items and higher level of inventory, encouraging off-seasonal buying, of-

setting competitive promotions, building brand loyalty of retailers and gaining entry into

new retail outlets. The sales force promotions help in encouraging support of a new

product or model, encouraging more prospecting and stimulating off-seasonal sales. But

most importantly, sales promotion should be focused on consumer relationship building.

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives. Descriptions of the

main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

Samples:

They are offers of a trial amount of a product. It consists of inviting prospective

purchasers to try the product without cost or at a lower cost in the hope that they

will buy the product. Samples may be free or discounted.

Coupons:

Coupons are certificates that give buyers a saving when they purchase a

specified product. Coupons can be mailed, placed in advertisements or included

with other products.

Rebates:

Rebate is also known as cash refund offers. Rebates are offers to refund part

of the purchase price of a product to its customers who send a proof of

purchase to the manufacturer. These are like coupons except that the price

reduction occurs after the purchase and not at the point of sale.

Price Packs:

Cents-off deals or price packs offer consumers savings by way of reducing

prices that are marked by the producer directly on the package.

Premiums:

These are the goods offered either free or at a low cost as an incentive to

buy a product. Premiums may be in-pack or on-pack (outside the pack).

Prizes: They are offers of chance to win something such as cash, trips or goods – by luck or

through extra efforts. Contests of talent and sweepstakes or draws the most popular

prize offering promotions.

Tie-in Promotions: Tie-in promotions involve two or more brands or companies that team up on coupons,

refunds or contests to increase their pulling powers.

Cross Promotions: Cross promotions involve using one brand to advertise non-competing brand.

Advertising Specialties: These are useful articles imprinted with an advertiser‟s name, given as gifts to

consumers.

Patronage Rewards:

They are cash or other awards for the regular use of company‟s products or

services. They are values (in cash otherwise) that are proportional to one‟s

patronage of a certain vendor or a group of vendors. They aim at building brand

loyalty.

PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take place at the

point of purchase or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer

promotions (42%). The major trade promotion tools are as follows;

Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off the list

price on a particular quantity purchased during a stated time.

Allowances:

They are the amount offered in return for an agreement by the retailer to feature the

manufacturer‟s products in some way; displays, advertising or otherwise.

Free Goods:

Free goods are the extra merchandise offered to middlemen who buy a specific

amount of a product.Companies also offer push money and specialty advertising

items to the middlemen

RESEARCH METHODOLOGY

The researcher has done the research in the following manner;

a) Type of the research undertaken is analytical.

b) Technique used is random sampling.

c) Sample size taken is 30.

d) Sources of data used include both primary as well as secondary data.

e) Tool used for the research is questionnaire.

f) Plan of analysis are tables and graphs.

Data Collection Methods

In this study, the foremost data collection instrument used is the questionnaire method.

The questionnaire has been designed with both open ended and closed ended

questions. Apart from this, the research instrument consists of primary and secondary

data collected for the study.

Primary Data:

Here first hand information is obtained by distributing printed questionnaire to the marketing

executives of the company. Data was also obtained from the observation and interview

technique adopted by the researcher. Moreover, information was disseminated by the

departmental heads.

Secondary Data:

Here the information is obtained from the brochure of FerrorDek, books, websites,

newsletter, journals, magazines, newspapers, etc.

SOURCES OF DATA

Primary Data Secondary Data

Questionnaire Newsletter

Observation Journals

Interviews Magazines

Visits to other Newspapers

Companies Information BooksThrough

Departmental heads Websites

DATA ANALYSIS

Original Equipment Manufacturers (OEM) Market

The OEM market for bearing represents the demand arising out of the original vehicle

and industrial manufacturers. The demand for the OEM market directly depends upon

the growth in user industry. OEM market accounts for 60% of total demand of bearing

industry. This market is characterized by requirements of high quality, stringent delivery

norms and ower margins.

OEM‟s have been facing price competition in their own markets; continue to exert price

pressure on the local bearing suppliers. The bearing capacity available in the country is

in excess of demand, resulting in price reduction. The OEM bearing market is likely to

witness better days ahead on account of upswing in automobile industry and

manufacturing sector

Replacement Market

The replacement market represents the demand arising on account of replacing the

used and worn-out bearings. The size of replacement market is dependent on

equipment population and frequency of maintenance. Replacement market accounts for

40% of total demand for bearing industry. The margins in this market are relatively

higher placed as compared to OEM market.

The replacement market is highly price sensitive and has higher share of unorganized

players and cheaper imported bearings.

Common Area of Bearings Applications

Largest Application (by volume) - Bearing Type Used

Engineering - Deep Groove

Trains, Machine Tools - Cylindrical

Cars, Various - Spherical

Industrial Vehicles (Trucks,

Construction Vehicles) - Tapered

Engines (Diesel& Petrol), Gearboxes - Needle

NEI’S MARKET SHARE

NRB 9%

TIMKEN 8%

ABC 6%

TATA 9%

FAG 15%

SKF 20%

NEI 29%

HMT 4%

EXPORT MARKET SHARE OF INDIAN BEARING INDUSTRIES

20011-12 (VALUE)

FAG

34%

TIMKEN

12%

ABC

0%NEI

14%

NRB

2%

SKF

38%

NEI SHARE IN DIFFERENT SEGMENTS

IN YEAR 2011-12

Ball Bearing

Tapper Bearing

Ball Bearing

0

10

20

30

40

50

60

2&3

Wheeler

Cars C.V. MUV Tractor

Ball Bearing Percentage

Tapper Bearing

0

5

10

15

20

25

30

35

40

45

Cars C.V. MUV Tractor

Tapper Bearing

Percentage

FACTS ANDFINDINGS

SUMMARY OF FINDINGS

A Summary of Findings:

The finding can be grouped together into two broad categories such as;

Specific Findings:

This is pertaining to the objectives of the study.

General Findings:

This is with regard to the market dynamics and visits made by the researcher

to companies having almost similar products profile.

Specific Findings:

The company adopts a variety of promotional methods such as paper insertion,

telemarketing, display stalls, participating in exhibitions, direct mail, presentations and

showroom.

1. Transparency is maintained at the levels of the organization.

2. The products are marketed through direct marketing (showroom) and dealers

are involved in the marketing process.

3. The activities carried out by each and every department of the organizations

systematic.

General Findings:

1. Foreign companies can invest up to 100% in most of the manufacturing

industries in India.

2. With the vast array of modular option available in market, the consumer isn‟t

really strapped for choice.

3. Italian manufacturers have now entered the Indian markets. Moreover, furniture

made from Asian Teak Wood which is available in the rich rain forests of

Malaysia is flooded in the Indian market. In a nutshell, this means to say that the

competition is very intense.

4. Many branded companies outsource the products because of which the delivery

time of the product ordered is stretched.

5. “Quality never comes cheap”. This is true but at the same time, it is also true that

quality can come at a reasonable price, With regard to the quality.

6. Majority of the marketing executives are male.

CONCLUSION

“No man has the right to dictate what other men should perceive, create or produce, but

all should be encouraged to reveal themselves, their perceptions and emotions and

builds confidence in their creative spirit!”

This inspiring thought of Ansell Adams is well appreciated by new style marketing

organizations which understand that “boxes and lines” structures can‟t drive value in

fast moving environments. No doubt, that NEI is one of them because they believe in

teamwork. Today, the need of the Indian consumer evolves beyond “roti,

kapadaaurmakaan”. To capture opportunities continually, the company must have a

continual flow of ideas. Transforming a pipeline full of ideas into a value – generating

portfolio of products and services is hard. Herein, lays the importance of co-ordination.

1. Production data of other automobile is very important for bearing industry.

2. Demand data is also very important for bearing industry.

3. NBC supply 29% of bearing in Indian market, rest other company supply.

4. India‟s first bearing company having maximum sizes.

5. India‟s largest bearing company.

RECOMMENDATION&SUGGESTIONS

RECOMMENDATIONS

1. It‟s overwhelming to find out that the organization works in a systematic manner.

A blend of co-ordination will definitely enhance the performance of the company

2. Quality clubbed with reasonable pricing and quick delivery made the product of

the company stand apart. The marketing campaign should focus on this aspect

and made according to its line.

3. The strength of the company is its customized products. This very fact must be

highlighted in the marketing campaign.

4. As the products are reasonably priced, the ambit of the target consumers should

be stretched so that middle class consumers also fit into it.

5. The company must stick to a norm while giving discounts on repeat purchase.

This will certainly help in sales promotion in order to create repeat purchase.

Suggestions

1. Everyone is aware of the growth in wealth and change in lifestyle.So the

marketing campaign should be designed to woo the customers.

2. The company should explore all possible ways in order to aggressively sell its

products. So, the company can register itself in Bearings.co.in as it is India‟s

biggest online B2B plan with largest virtual Bearings directory.

3. The Motors industry is in boom. In order to tap the potential market, the

Company can advertise in a magazine. This will help in showcasing the products.

This can add an extra spice to sales.

4. In today‟s crowed market place in order to increase the size of the pie, the

Company can adopt innovative promotional strategies. It will help in creating and

reinforcing the Company‟s identity in the minds of the consumer.

5. In order to be extra ordinary, the Company has to walk the extra mile. A method

named „Experimental Marketing‟ can be adopted by the Company wherein the

prospective consumers can be invited to visit the showroom and touch and feel

the products.

6. Since the competition is intense, so there should be some value addition so as to

make the Company stand apart in the market. One such way is to improvise the

customer service.

7. Consumer is the king in the market. This fact should be deeply rooted in the

minds of the employees. The Company can adopt some ways to listen to the

customer‟s feedback which should be noted in writing so that it will help in

continual improvement and make the company to be in the right track always.

8. Moreover, a sense of involvement will be felt by the customers whish can give

the company a cutting edge.

9. To collect demand data of automobiles company on time.

10. NBC should send their product catalogue to all automobile companies.

11. Try to increase their supply in Indian market.

12. Try to build new foreign automobile customers.

13. Try to make brand awareness in customer‟s eyes

14. Try to increase product visibility among general public.

APPENDIX

Questionnaire

1. What are the different types of Bearings that the NEI Manufacture?

2. What types of Bearings does the NEI Exports. Suggest

3. Where NEI Exports Bearings?

4. What are the different types of sizes that NEI have

5. Who are main customers of NEI in Automobiles sector

6. How Modes of Entry helps NEI to extend its Business?

7. How Important Is MUV‟s and CV‟s Segment For a Company?

8. What steps should be taken while entering into the Country?

9. What is the Marketing Strategies of NEI?

10. NEI should focus on which Market?

11. Do you think that Automobile sector is the Major Market of Bearings for NEI?

BIBLIOGRAPHY

BIBLIOGRAPHY

www.bearingindustry.com

www.commerce.nic

www.cbi.edu

NEI Literature

www.oica.net

Global Bearing Market

www.neibearing.com