marketing -ii - assignment i

8/7/2019 Marketing -II - Assignment I

1/22

The Bearing Industry The current Indian bearings industry is worth Rs.$ 33

billion growing at approximately 20% annually.

About 12 large and medium units which together turn

out over 100 million bearings every year. Almost allthe units have foreign collaboration.

It makes around 500 types of bearings as against over

30,000 types of bearings being used by the Indian

industry.


2/22

Application

It is applicable in possibly every movingmachinery, but is of significant importance for

Steel

Paper & Pulp Heavy Metal

Earthmovers

Engineering

Construction

Sugar Industries

Textile Industries


3/22

Kirti bearings Corporation

Since 1972

Primarily a dealer for all kinds of bearings andaccessories

In 2007, took-up distributorship for ZKL India

Annual Turnover Rs. 1.5 Crore in 2009

Turnover from ZKL Rs. 50 Lacs in 2009

No. of employees 5

Office and Warehouse - Mumbai


4/22

Company Details

More than 90years old

Located in Czech Republic

It was represented in India by a few dealersand distributors who simply used the brand

for trading purpose.

ZKL Bearings (India) Pvt. Ltd. was set up inlate 2002 to provide an official representation

for the brand in the country.


5/22


6/22


7/22

Manufacturer Importer

Distributor/Dealer Customer


8/22

Role of each members of the System

Importer

The importer is the sole supplier of ZKL bearings to

the distributors. The importer imports the

products from ZKL Czech Republic. They are

responsible for creating awareness , appointing

regional distributors, encouraging promotional

activities and providing technical support.


9/22

Distributor/Retailer

The role of distributor/dealer is to aggressively

marketing and selling the product to the end

users. They are responsible for allpre-sales

(promotion), sales and after-sales activities

(services).

Role of each members of the System


10/22

Manufacturer 100%

Importer 60%

Distributor 33%

Retailer 15%


11/22

Business & Operations


12/22

Relationship & Expectation

Manufacturers

expectation from the

Importer

1. On-time payment

2. Frequent and timely

orders

3. Creating brand

awareness & effective

promotion

Importers expectation

from the Manufacturer

1. On-time and safe

delivery of goods

2. Provide according to

the latest trends and

technology

3. Adequate support

and necessary

services


13/22

Importers/Distributor



1. On-time payment

2. Achieve targets

mutually agreed upon

3. Creating awareness

4. Ensure customersatisfaction

5. Maintain

Manufacturers brand-

image

Distributors /RetailerDistributors /Retailer


Importer / Distributor

1. On-time and safe

delivery of goods

2. Discounts

3. Passing on valuable

and timely

information

4. Provide necessary

support

5. Allows multi-brand

distributorship/Deale


14/22

Distributors/Retailer


End User

1. On-time payment


orders / Contracts

3. Brand loyalty

4. Criticism and

feedbacks

Customers expectation

from the


1. On-time and safe

delivery of goods

2. Discounts

3. Provide products

according to the

latest trends and

technology

4. Services


15/22

Suppliers expectation

from the Retailer

1. On-time payment


orders

3. Consumer

Expectations

Retailers expectation

from the Supplier

1. On-time and safe

delivery of goods

2. Discounts

3. Provide according to

the latest trends and

technology

4. Services


16/22

What Marketing Decisions to be

made?

Marketing decisions are normally made

individually at all three levels

Though the decision is voluntarily made itrequires the approval of the Importer

Also, in most cases part sponsorship is

provided by importers


17/22

Physical Distribution

Gets an order collects all the materials

physically transported to the transportation

office to the destined branch the customer

collects it from the transportation office


18/22

Sales Incentives & Trade Promotions

Classified on the basis of sales

Higher the


19/22

Information Flow

ZKL Cz ZKL India Distributors/Dealers

Local Market & End users


20/22

Financial Transactions & Credit Terms


21/22

Basic Economics of Business


22/22

Significant Problem Areas

High level of duplication

Lack of awareness and quality checking

procedures by end users Threat from the chinese market

Resistance to experiment new brand

Corruption Fragmented with economies of scale

marketing -ii - assignment i

Documents