s and d final

8/3/2019 s and d final

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Hii varundivide the work among u 3

Add some images

Part 2) and 4) (see from agenda) is not donesee wt is tob included in these parts from the slide no.8 and 11..

also add some concepts from theory wt sir taught..

add anything othr than this dat u find missing or important

I wil do the conclusion part once u mail me the completeppt.


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Journe of fillin the loo s in the chain

EICHER MOTORS LTD.

Presented by:

Abhishek Gupta, Gurpreet Gill, Varun Raj Atri, Varun Bakshi


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AGENDAOF PRESENTATION

1) The case and Background study

2) Automobile industry in 1980s

3) About Eicher Motors Ltd.

4) Eichers dealership strategies

5) Current sales & distribution scenario

6) Conclusion


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1) The case and background study: 1980s

Liberalization of highly regulated Indian automobile industry Dominating players

HCV

Telco

(75%)

Ashokleyland( 25%)

LCV

Bajaj Tempo

(65%)

Mahindra &Mahindra

(45%)


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Strategy of new LCV entrants: JV with Japanese manufacturers DCM & Toyota

Swaraj Tractor & Mazda

Allwyn & Nissan

Eicher Tractors & Mitsubishi



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Allwyn Nissan: tied up with large established dealers

Swaraj Mazda: tied up with smaller dealers who could run the risk ofevoking poor customer confidence in the Company

Eicher Mitsubishi:


Delayed entry but with a better product than competitors

Entered the market when demand went low

Could not find high investing potential dealers


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2) AUTOMOBILE INDUSTRY IN 1980s

DEMAND?????

INFRASTRUCTURE DEVELOPMENT???

GROWTH RATE???


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3) ABOUT EICHER MOTORS LTD

Eicher Motors, was founded in 1982 to manufacture a range of

reliable, fuel-efficient commercial vehicles of contemporary

technology. The unit manufactures and markets commercial vehicles with

Gross Vehicle Weight (GVW) ranging from 5-25 tons.

Today, Eicher Motors is one of the leading manufactures

of commercial vehicles in India with a 33% market share in the 7T-

11T segment.

The success and growth of this unit is a result of various customer-

driven strategies.

The manufacturing facility is situated in Central India Pithampur,

Madhya Pradesh.


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In 1986, Eicher Motors entered into a technical and

financial collaboration with Mitsubishi Motor Corporation

of Japan to manufacture the Canter range of vehicles.

The technical assistance agreement with Mitsubishi ended

in March 94 after successful transfer of technology.

Eicher Motors has acquired formidable expertise in

designing and developing commercial vehicles. Eicher Motors products have been well accepted in the

market. This is also demonstrated by significant sales of its

commercial vehicles in export markets where the company

competes with reputed international brands.

3) ABOUT EICHER MOTORS LTD (journey so far)


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4) Eichers dealership strategies

How they succeeded in winning dealerships

in 1986????

Did they gave more margins to dealers than

other competitors?

Dealers were big or small???

How they convinced dealers to invest in

eicher

How was the demand for lcvs estimated??


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Eicher Motors functions through a strong three-tier service

network consisting of

authorized distributors, service centers and

company trained private mechanics.

The vehicles are sold and serviced through a network of over 576Authorized Contact Points all over India, supported by service

centers and over 4500 company trained private mechanics, which

are close at hand on all major highways throughout India to

provide initial "first aid" to the vehicles if required.

5) CURRENT SALES & DISTRIBUTION SCENERIO


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SALES ORGANISATION:

There are different Territory Managers and Area

Managers for different priducts

Additional support staff for

after sales

repair

DEALERS &Sales persons

TerritoryManagers

Areamanagers

RegionalManagers

NationalSales head


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Territory Management

4 regions

states

Dealerships based onindustry or market size

Sales representatives(not

employees of EML

THUMB RULE:for 1000 industry size there

should be a dealer i.e. one

dealership per 1000 units of

sales in an area.


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Channel management

Dealerships are exclusive: dedicated even to

the category

No conflict of interest arises

Involves high capital from dealers

Barrier as not many dealers would want to

commit to just one company/channel


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Channel structure and design

1) 3-S structure

SALES

SERVICE

SPARES


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2) 2-S Channel

if there is big territory

and adequate no. of

vehicles are not sold

but vehicles are

supplied in thoseareas only for

service and spare

SERVICE

SPARE


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3) 1-S CHANNEL

These are retailers who

sell spares only Onlysparesoutlet


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CHANNEL CONFLICTS: On discounts

territory infringement

PRINCIPLES TO RESOLVE CONFLICTSDiplomacy

arbitration

Partner relationship management for long term

partnerships

use of IT

Rewards to top performers based on Dealer

scorecard and audit scores


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5) CURRENTSALES & DISTRIBUTIONSCENERIO


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The functioning of Eicher dealers :

use following methods to attract customers:

tele marketing

personal selling

discounts

test rides

free gifts

free service camps

loan festival



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The Group has approximately 675 vendors supplying

components and sub-assemblies that testifies to the

strength of the vendor base.

Its products are brought to the customer through its strong

network of around 380 dealers distributed across the length

and breadth of India.

Eicher has presence in more than 40 countries across the

world.



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