Introduction

Toyota is a leading automobile manufacturer and now its entering into tyre business and
currently it has tie ups with companies like Bridgestone, Michelin and Good Year etc., Toyota
is a Japanese brand and currently operates worldwide and has developed a great goodwill in
terms of its product and service quality, In this project we will set launch plans for Toyota
tyres and initially we will target Chandigarh Tricity for our research and test marketing and
we will collect anonymous market data from dealers in Chandigarh Tricity,
Need of study

To understand the mood of the market.

To know who are our competitors
Current market share of our competitors
What are the various factors such as Brand Price Quality
No. of tyres sold at various Counters in Chandigarh Tricity
And what kind of marketing tactics other companies currently using

So these are the various points which we will consider with our product launch and we will
create a market plan accordingly as we know there is stiff competition in the market and
entering into such a market is not easy, we need to be proactive and we will use a same brand
name for our tyre business and this will also help in cutting our own tyre cost as we are using
3rd party suppliers for all our tyre needs and also with the great goodwill of its own brand it
will be a great start for them.
In India tyre Industry is almost about 50000 crore a year business, there are about 39 tyre
companies and about 60 tyre manufacturing plants and about 1461 lakh in total production
and a 10500 crore tyre is being exported, so its great but competitive market but as we know
consumer is king, we provide better quality and service, customers will make us king, so its
just the same tum mujhe khoon do me tumhe ajaadi doonga but in marketing world its
Tum mujhe quality aur service do me tumhe profit doonga.
Basically plan can only be successful if we have proper knowledge of the market,
Competitors, customers, govt. policies and the area we are launching our product. The basic
funda is same in case of any kind of markets we need to properly set our marketing mix
which includes our product, price, place and promotion.

Basic Info about tyres

As we know we are launching tyres, so we need to understand the product completely and
what are its components and what will be the raw materials to be used in the production
process etc. This below is a technical diagram of structure of tyre and it also includes various
parts such as now a days radial tyres are being produced which includes special protection of
steel belts which make it much more stronger.

Tyre size designation

Advantages of radial tyres

Better
Safety

Better
Control

Fewer
Punctur
es

Less
wear
and tear

Better
Value
for
money

Tyre industry in India

Contents

Amount

1. No. of tyre Companies in India

39

2. No. of total tyre production plants

60

3. Industry turnover 2014-15

50000 Crore

4. Exports

10500 Crore

Production Process

This above is the production process of tyres, so basically here we have Natural rubber,
carbon black and synthetic rubber, this all is being processed in machines and then are put on
assembly lines and then are being sold at retail outlets and afterwords retread factories are
being setup in which tyres are being recycled. So its the production process. The overall
quality of product is dependent upon the quality of the rubber we are using in it, it works as a
chain as firstly fresh tyres are produced, sold and then once the tyres are being fully utilized
they are being sent to retread factories where recycling is done.

Company Profile
Company name
President and director
Date founded

Toyota Motor Corporation

Akio toyoda
Aug 28, 1937

Capital
No. of employees
Main business

397.05 billion yen

344109
Motor Vehicle production and Sales

Toyota Vision
1. Lead the wayToyota always lead the market in terms of technological advancements
and in terms of providing customer a good quality product and service.

2. Future of mobilityWith its innovative practices and R&D center advancements it is

considered the future of mobility or we can say transport.

3. Enriching lifeBy providing good quality products to the customers and

creating value among customers thus enriching their life and making it
easy and comfortable.

4. SafeTo provide safe and innovative products to the consumers and to fulfill all
safety standards as no compromise can be made in terms of safety

5. Commitment qualityAs we know Toyota is always famous for its quality

standards. In each and every product the quality is upto the marks and Toyota is
committed to provide good quality products

6. Constant InnovationToyota believes in constant innovation so it keep on

developing new and innovative products and also improving existing products.

7. Respect the planetToyotas manufacturing plant is very much efficient and

environment friendly as all the harmful waste is being utilized and processed to create
electricity and also its cars are eco-friendly.

8. Customer satisfactionAs in here we know Toyota believes in creating value among

the customers, so it always helps in complete customers satisfaction through quality
and service.

9. Challenging GoalsIt always set challenging goals and with its system it is being
able to achieve all its targets

Channel sales

Distributio
n

4 ps

Relations

Network

Commitme
nts

The word channel relates to distribution and it is used in its most generic and common
terminology. We use it frequently throughout this book, as it is a worldwide term and used
across the length and breadth of distribution networks.
The word channel is prevalent in many distribution networks and defines a path or chain
from the distribution process to specialized market intermediaries. You could view it as
channels of water (goods or services) flowing off a lake and the role of those channels is to
distribute the water to other areas. As a description of this channel or chain effect, it is
important to note product flows down the chain to the next organization before it reaches the
final destination point of a product or service to a consumer or end-user. This process creates
a distribution or channel process. Each of the elements in the product or service progression
will have their own specific needs, which the vendor or manufacturer must take into account,
along with those of the all-important end-user.
A distribution channel can include wholesalers, retailers, distributors, resellers either value
added (to the client) or not, agents, system integrators and this can be via bricks and mortar,
Internet or as is most common these days a mixture of the above. Generally speaking: There
is a range of known distribution channels and each of the following is a common description;
Direct vs Channel sales
Direct sales are when a company sells its only products and services directly to its client or
customer base without another party involved. A direct sale is the conventional approach of
selling to a customer base and cutting out the distribution middleman.

Things necessary for effective Channel Management

There are numerous industries and businesses which work on channel sales and marketing. In
channel sales, instead of employing many executives, the company passes on margins to their
distributors and retailers who in turn sell the companys products. In return, the distributors
and retailers get margins on the product sold. To manage these distributors and retailers, there
are company executives and managers appointed.
1) Relations The very first and the most important thing in channel sales management is
maintaining relations with your channel partners. Although you yourself are a salaried
employee, your distributors are entrepreneurs and proprietors and thus they deserve your
respect at all times. On top of it, everyone has their own way of creating and maintaining
relations. The smartest channel manager is the one who can maintain relations with all the
different types of distributors and retailers.
Example Titan carries out its sale of watches through distributors and retailers. The channel
sales executive is responsible for getting the stock tally and for ensuring that optimum sales
happen from the distributor and retailer counter. For this, the channel sales executive has to
ensure that he maintains good relations with his channel partners.
2) Network Channel sales generally happens based on geographical territory. Within a
particular geographical territory there might be many channel dealers of same brands or
different brands. Creating a network of channel members is important for the channel
manager. This network can come in use anytime. A competitor might anytime switch over to
the distribution of your brand. Similarly, your distributor might need a long list of retailers to
distribute his products. In this case too your networking plays a crucial role. Overall, the
more new channel members you add to your network, the more chances of success you have
at channel sales.
3) Motivation Your channel needs to be motivated to do business with you. Motivation can
be in the form of 3 R. Respect, recognition and reward. Respect is something which comes
from the channel sales executive. Recognition comes from managers and the senior people in
the organisation who show recognition to the dealer and his importance in the organisation.
Recognition can also be in the form of awards and certificates. Finally, reward takes the
monetary form where dealers are given a percentage reward or a value based reward to keep
them motivated. The more interest you show towards the distributors business and his
growth, the more motivated he will be.
4) The 4 ps or the marketing mix The marketing mix of your company also plays a
crucial role in channel sales. The right marketing mix will keep your channel motivated and

in your control. A poor marketing mix will probably cause your channel to lose customers to
competition which is the surest way to demotivate your channel. If you are not promoting
your product properly, or if the price is too high, or if the product is giving too many
technical issues than all these reasons of the marketing mix will cause your channel to lose
orders.
5) Conflict resolution Where there are so many people in a business, conflicts are bound to
happen. The most common reason for channel conflict is territory demarcation or price wars.
In both the cases, there might be some bad fish in the pond who are causing the problems.
These bad fish need to be controlled or taken out of the picture so that your channel remains
intact. On the other hand, conflict is sometimes necessary and the conflict confirms you that
your channel is working in the right manner.
6 Payments / outstanding Sales is only one aspect of channel sales. The other aspect is
collecting payments on time. All manufacturing companies generally run on a profit center
module. In a profit center, if you do not collect payment on time, interest is applied to your
profit center which is practically bringing down the margins of your business. Several
companies are smarter and instead of giving a turnover target to their managers, they also
give a margin based target which has to be achieved.
These targets are from the company point of view. From a dealers point of view, the dealers
might be having loan accounts with their banks. And thus, if a dealer takes too much money
from the bank, than he is paying a hefty amount in interests to the bank. Thus, even your
dealer needs to be financially sound so that he collects payments on time.
7) Commitments Be it time, be it discounts or any support that you have promised your
channel members, the commitments need to be followed. Your channel is made up of
business men who are there to do business. Thus, if you are making any false commitments
by yourself, you are destroying the reputation of your own company. On top of, if you build
your image positively, than the same dealers will support you whenever your sale is down or
even when you are in a different company with a different product altogether.
Thus, your relations, your network and your commitments all count towards making you the
best channel sales manager. Business basics such as marketing mix and motivation also come
into the picture. And lastly, the job of channel sales manager requires you to be an excellent
resolver of conflicts. Because conflict resolution ensures that all your channel dealers are
working towards the overall good of the company.

Top Competitors
1. Michelin: - Michelin is a French tire manufacturer based in Clermont-Ferrand in
the Auvergne region of France. It is one of the three largest tire manufacturers in the
world along with Bridgestone and Goodyear. In addition to the Michelin brand, it also
owns the BFGoodrich, Kleber, Tigar, Riken, Kormoran and Uniroyal (in North
America) tire brands. Michelin is also notable for its Red and Green travel guides, its
roadmaps, the Michelin stars that the Red Guide awards to restaurants for their
cooking, and for its company mascot Bibendum, colloquially known as the Michelin
Man.
2. Bridgestone: - The Bridgestone is a multinational auto and truck
parts manufacturer founded in 1931 by Shojiro Ishibashi in the city
of Kurume, Fukuoka, Japan. The name Bridgestone comes from a
translation and transposition of ishibashi, meaning "stone bridge" in
Japanese.
3. Good year: - The Goodyear Tire & Rubber Company is an American
multinational tire manufacturing company founded in 1898 by Frank Seiberling and
based in Akron, Ohio. Goodyear manufactures tires for automobiles, commercial
trucks, light trucks, motorcycles, SUVs, race cars, airplanes, farm equipment and
heavy earth-mover machinery. The company was named after American Charles
Goodyear, inventor of vulcanized rubber. The first Goodyear tires became popular
because they were easily detachable and required little maintenance.
4. MRF Madras Rubber Factory Limited, commonly known by the abbreviation
MRF, is an Indian multinational and the largest manufacturer of tyres in India. It is
headquartered in Chennai, India. The company manufactures rubber products
including tyres, treads, tubes and conveyor belts, paints and toys. MRF also runs the
MRF Pace Foundation, Chennai and MRF Challenge in motorsport.
5. Apollo tyres: - Apollo Tyres Ltd is the world's 17th biggest tyre manufacturer,
with annual consolidated revenues of Rs 121.5 billion in 2011. It was founded in
1976. Its first plant was commissioned in Perambra, Thrissur, and Kerala. The
company now has four manufacturing units, one in South Africa, two in Zimbabwe
and 1 in Netherlands. It has a network of over 4,000 dealerships in India, of which
over 2,500 are exclusive outlets.
6. Continental:- Continental AG, commonly known as Continental, is a leading
German automotive manufacturing company specializing in tyres, brake systems,
interior electronics, automotive safety, powertrain and chassis components,
tachographs, and other parts for the automotive and transportation industries.
Continental is based in Hanover, Lower Saxony, Germany. Continental is the world's
fourth-largest tyre manufacturer.

Brand preference of dealers in

Chandigarh Tricity

Companies

ceat

j.k

MRF

apollo

continental

Good Year

Michelin

Bridgestone

10

12

Companies

Factors affecting while choosing particular brand

14

Parameter while choosing brand

2% 2%

4%
2%

90%

Brand

Price

Qualirt

Availability

After sales service

All of the above

None of the above

others

Inference
From above graph we came to know that 90% dealers consider all important
factors. 2% consider brand, 4% consider Availability, 2% consider quality and
other 2% consider after sales service.
No. Of tyres Sold at your Counter

Total tyres sold at counter

upto 100; 26%

300-more; 30%

100-200; 16%

200-300; 28%

upto 100

100-200

200-300

300-more

Inference
From above chat we came to know that 30% dealers sale 300 or more tyres
similarly 26% sale 100 tyre, 28% sale 200-300 tyres and 16% sale 100-200
tyres per month
Activates done by companies to increase sales

Campaigns at counter

all of the above; 22%

Campaigns at store; 34%

freebies; 44%

Campaigns at local level

Campaigns at store

all of the above

extra benefits

freebies

Inference
From above graph we came to know that 32% dealers say campaigns at store
and 22% say all of the above and 44% say they got freebies from the company.

Marketing Mix factors

Product
Price
Place
Promotion
Factors affecting product mix decisions

Profitabilit
y
Objectives
of
Company

Competiti
on

Produ
ct Mix

Govt.
Rules and
regulation
s

Productio
n capacity

Productio
n Costs

Demand

Price and factors affecting price

Factors

Internal

External

Cost

Competition

Image of
firm

Consumers

Product life
cycle

Government
Control

Credit
period
offered

Economic
Conditions

Promotional
activites

Channel
intermediari
es

Promotion mix

Promotion

Advertisin
g

Personal
selling

Sales
promotion

Direct
Marketing

1. Print

1.Sales
presentati
ons

1. Product
displays

1.Catalogu
es

2.
Broadcast

2.Trade
Shows

2.
Discounts

2.
telemarket
ing

3. Special
banners

3.
Incentive
Programs

3. Coupons

3. Online
Promotion

Dealership network structure

 T-shop

50
Tyre
s

120
Tyre
s

200
Tyre
s

T- Select

T-shop
mega

300
Tyre
s

T- super
select

How product will be projected on internet

Social
media
integration

Comparing
And Review
websites

Product
Video

E-mail
Newsletter

Company
Website

Blogs