Download - Automobile Retail
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Submitted to: Prof. Pankaj Sevak
Submitted by: Tapan Phadke
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Channel of Distribution
Manufacture
Wholesaler
Semi-wholesaler
Retailer
Customer
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Manufacturer
Banko (India) Pvt. Ltd.:
y Located at Baroda
y
Product:All type of automobile and industrial
radiator
Gas kit
Sales all products as OE parts e.g. Tata,
Maruti,M&M etc.
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TVS Girlling:
y Specialist in Break Parts.
Wheel cylinder kit
Wheel cylinder assembly
Master cylinder assembly
Break buster assembly
yOE supplier
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Engine Parts:y Engine Linear
y Piston
y Piston Ring
y Piston pin
y Thurs washer
y Connecting road brush
Following companies are producing engine parts: IPL
Menon Group
Mahale (Goetz)
Super circle
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Tyre:
MRF
JK Tyres
Apollo
Ceat
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Accessories:
y Autogold:
All types of head lights, switch lights
y ASP: Door rubbers, door garners
y ALP: Door rubbers, door garners
y Lumex:All types of head lights, switch lights
y Royal: DoorMirror
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Supp-liers
Firm name Specialistin
Amit auto agency All types
Asha automobiles All types
Dilip auto agency All types
Shree sahjanand motors All automotive parts
Auto center Tata Telco (Dist.)
Pensol (OilAgency)
Spring parts, engine parts
Sadguru sales agency ELF, Total (OilAgency)
Puoliter Filter (oil filter, diesel filter etc.)
GSMotors (semi- whole seller) AllAutomotive parts
Amrutlal Desai &Co. Tyres, batteries (seller)
Dealer ofMRF Tyre, TVS Lucas
BuddhbhattiAutomobiles Volvoline engine oil (agency)
Prestilite battery (agency)
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Supplier
From the list of suppliers in previous
slide, it is clear that the automobile
spare parts market in Bhuj isunorganized and there is high
competition in the market.
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There are approximately 200
shops in Bhuj including following mix of
channel:
y 70 wholesalers at Bhuj-Madhapar
highway
y 30 semi-wholesalers
y 150 retail counters
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Small Retailers:
As there is high competition in the market, thevery obvious question aroused is that how smallretailers can sustain in the market. I got following
reason from retailers.
According to them they use to contact to nearbyvillages garage people to increase their sales as itis not possible for them to retain same level ofprofit at a single location so they are trying tocapture near by villages market.
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TargetMarket
The target market for this business includes:
y Garages
y Transporters
y Truck/ vehicle owner
y Retail customers
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Credit:
For big transport company and garages:
y
1 month credit period
For Retailers:
y 1 week credit period
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Collection/Payment:
At Madhapar highway, all
accounts are cleared on every Saturdayi.e. weekly basis. They collect payment
within a week. It is the system which is
followed in this business.
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Sales Promotions
As a part of sales promotions, Companies are using Push
Strategy in this sector.
In push strategy, company use to attract sellers by
providing different schemes to them on the basis of sales
of their product.
They provide gift coupons to mechanics for retaining
them.
Kafila, IPL, Menon, QH etc. companies are providing gift
coupons for mechanics in order to increase their sales.
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Critical Issues: Inventory Management:
It is really burning issue for all retailers as well as wholesalers. As new
models are launched in very short span of time by the companies, it is very
difficult for them to decide the inventory level for each model (new as well
as running model).
StockTurnover:
High turnover is another issue which makes this sector unorganized, as
all resellers cannot have capacity to keep a large amount of money invested
in the stock. As retailer cannot maintain stock, semi-wholesalers can sustain
in the market.
Shortage of raw material:
Due to shortage of raw materials it is difficult to get spare parts of
vehicles which in turn makes difficult to retain customers.
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Conclusion:
Kachchh depends largely on transport
business. There is SEZ at Mundra port, there
is Kandla port, mines at Mata na Madh,
Sanghi Industry is there.
Due to this, transportation business is
growing continuously. Hence, automobilesector will continue to grow in Kachchh.