A Study On Market Potential For Passenger Car Steel Wheels Over Alloy Wheels
A Study On Market Potential For Passenger Car Steel Wheels Over Alloy Wheels
On
by
GAUD ANAND RAJVEER
At
International Institute of Management
Science
Chinchwad, Pune-411033
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
CERTIFICATE
________________ _______________________
Internal Guide Prof. B.S. Kunte
Director In-charge
IIMS, Chinchwad
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
ACKNOWLEDGEMENT
I am deeply indebted to many people for the successful completion of this project.
I would like to take this opportunity and go on record to thank them for their help and
support.
I am thankful to the International Institute of Management Science for all the support
provided for this project.
I also wish to acknowledge the excellent support of my Company Guide Mr. Sandeep
Pawar for this work.
I wish to thank all my teachers and friends too, for their helpful inputs, insightful
comments, steadfast love and support.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Executive summary
Market Participation
Auto sector alone contributes nearly 84.3% of the total turnover (OEM) and the rest belongs to
the replacement market. The auto component sector clocked a turnover of USD 35.1 bn in FY14,
recording a CAGR of 7.8% during the period of 20082014 and is projected to become the fourth
largest automobile producer globally by 2020 with a turnover over USD 150 bn by FY20,
according to Automotive Component Manufacturing Association of India (ACMA).
Over the last decade, the automotive components industry has scaled three times to US$ 40
billion in 2015 while exports have grown even faster to US$11 billion. This has been driven by
strong growth in the domestic market and increasing globalisation (including exports) of several
Indian suppliers.
According to the Automotive Component Manufacturers Association of India (ACMA), the
Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020
backed by strong exports ranging between US$ 80-US$ 100 billion by 2026, from the current US
$11.2 billion.
Investments
The cumulative Foreign Direct Investment (FDI) inflows into the Indian automobile industry
during the period April 2000 – September 2016 were recorded at US$ 15.80 billion, as per data
by the Department of Industrial Policy and Promotion (DIPP).
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Government Initiatives
The Government of India‘s Automotive Mission Plan (AMP) 2006-2016 has come a long way in
ensuring growth for the sector. It expected that this sector‘s contribution to the GDP will reach
US$ 145 billion in 2016 due to the government‘s special focus on exports of small cars, multi-
utility vehicles (MUVs), two and threewheelers and auto components. Separately, the
deregulation of FDI in this sector has also helped foreign companies to make large investment in
India.The Government of India‘s Automotive Mission Plan (AMP) 2016–2026 envisages
creation of an additional 50 million jobs along with an ambitious target of increasing the value of
the output of the sector to up to Rs 1,889,000 crore (US$ 282.65 billion).
Road Ahead
The rapidly globalising world is opening up newer avenues for the transportation industry,
especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed
more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to
newer verticals and opportunities for autocomponent manufacturers, who would need to adapt to
the change via systematic research and development.
GLOBAL INDUSTRY
Global automotive industry has been witnessing a high growth which is laying exponential
opportunities for the automotive parts industry. There are basically two types of market for auto
parts manufacturing namely Original Equipment Manufacturing (OEM) and aftermarket. In
OEM the auto parts manufacturing industry supply components to the OEMs which are the
automobile manufacturers. Generally the aftermarket supplies of auto parts manufacturing is
greater than its OEM supplies. The global automotive industry is in a state of flux with markets
like India and China driving growth. The annual sales figures in more mature markets are now at
pre-recession levels, signaling a new beginning for this sector. However, this transformational
phase is also laden with subtle uncertainties. The biggest challenge that the industry needs to
overcome this year is the unevenness of the global markets resulting from turmoil in stock
market levels, license restrictions on new vehicles, stringent emission controls and so on.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Brake and
Pistons and Starter Sheet metal
Gears brake Headlight
rings motors plant
assemblies
Fuel-injection Electric
Steering Shock
systems and Wiper motors ignition Fan belts
Systems absorbers
carburettors systems(EIS)
cooling Hydraulic
Dashboard Flywheel
systems and Axles Leaf springs
instrument magnetos
pneumatic
part instruments
OVERVIEW:
Maxion Wheels and its subsidiaries have been supplying OEMs with the highest quality wheels
and most innovative technologies for over 100 years. During that time, they've acquired some of
the most recognizable names in the industry, including Kelsey Hayes, Lemmerz and Fumagalli.
Today, they put their combined expertise to work for nearly every OEM and vehicle market in
the world.
They're also backed by the strength and security of their parent company, Iochpe-Maxion, which
ensures that our customers can count on them for the long-term growth, infrastructure and
stability they need.
VISION:
We focus on the Right Products, Right Costs, Right Geographic Markets and Right People. To
meet the challenge and deliver, we execute the following strategies:
To be Low-Cost Producer:
The industry climate affects our customers and our Company. We are developing a position as a
low-cost producer, continuously seeking to eliminate waste and to develop cost-efficient
products and processes. Our focus is on the Right Costs.
At Kalyani Maxion Wheels Pvt. Ltd., we have a passion for people -- the Right People -- trained
and talented at all levels of the Company. Open communication, teamwork and individual
responsibility fosters a ―can-do‖ attitude at Hayes Lemmerz.
Ethical conduct in all business-related activities is a key element of our business strategy and
development at IOCHPE-MAXION. Therefore, we do not want anyone to jeopardize these
standards of conduct, even when one thinks that his / her actions may favor or enhance IOCHPE-
MAXION's performance.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
LOGO:
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
HISTORY OF ORGANIZATION:
Since designing the first wooden-spoke wheels for the Model T, Maxion Wheels has been
responsible for nearly every major wheel innovation in automotive history. Over the course of
the last 100 years, we've grown to serve a worldwide customer base with a diverse and
comprehensive product offering. Today, we continue to innovate and add to our core product
offerings, while strategically expanding our manufacturing capabilities to match the growth of
our customers.
1908 - Clarence Hayes establishes Hayes Wheels and begins Production of Wooden Wheels for
the Ford Model T
1909 - John Kelsey and John Herbert establish K.H. Wheel Company
1916 - WK Prudden Wheel Company begins in Lansing, MI
1919 - Lemmerz begins producing wheels in Königswinter, Germany
1920 - WK Prudden Wheel Company becomes Motor Wheel Corporation
1921 - Johan Lemmerz invents a multi-piece removeable rim with 5 screws
1924 - Lemmerz begins production of original equipment disc wheels for Opel Laubfrosch
1927 - K.H. Wheel and Hayes Wheels Merge to Form Kelsey-Hayes Wheel Company
Goodyear Tire Company opens steel wheel plant in Akron, OH (Maxion Akron Plant)
1934 - Kelsey-Hayes invents the drop center steel rim wheel that becomes the industry standard
1939 - Lemmerz begins producing wheels square profile wheel discs
1940s - Kelsey-Hayes produces machine guns and equipment for tanks during World War
2 Kelsey-Hayes develops die cast of Magnesium Wheel for U.S. Military
1946 - Paul Lemmerz invents a 4 piece pressed high-load square-shoulder rim for commercial
vehicles
1960 - Lemmerz establishes Lemmerz Espanola S.A. (Manresa Plant)
Kelsey-Hayes introduces the Integral Aluminum Wheel Hub and Rim - Cast Aluminum Wheel
1962 - Kelsey-Hayes supplies Chrome Plated Wire Wheels for Ford Thunderbird
Lemmerz establishes Lemmerz de Mexico (Tlainepantla, Mexico)
1968 - Lemmerz establishes Borlem S.A. Empriendimentos Industriais, a joint venture
established to manufacture steel wheels in Brazil
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
1970 - Fumagalli builds Limeira, Brazil Plant Motor Wheel introduces Polycast Wheels - styled
urethane fascia molded to a steel wheel
1970s - Introduced "Pierce After" and "SHAPE" Processes for Uniformity
1980 - Kelsey-Hayes acquires ET Mags, an aftermarket aluminum wheel producer Lemmerz
begins mass production of automotive disc wheels with sheet aluminum
1989 - Varity acquires Kelsey-Hayes
1992 - Fumagalli sells truck and agriculture wheel equipment to FNV (Maxion) Kelsey-Hayes
develops 1st Cylindrical Reverse Flow Formed Rim
Hayes Wheels International, Inc the wheel business of Kelsey-Hayes, completes an initial public
offering , Lemmerz enters into license agreement with Bharat Forge Ltd to produce steel wheels
in India
1993 - Hayes Wheels announces construction of an aluminum wheel plant in Gainesville, GA
Hayes Wheels acquires 45% interest in the steel wheel operations of Nova Hut in Ostrava, Czech
Republic and increase ownership to 100% in 1997
1994 - Hayes Wheels introduces first Chrome Clad Full Face Steel Wheel - Ford F-150
1995 - Hayes Wheels introduces first Full Face Fabricated Aluminum Wheel - Ford F-150
1996 - Hayes Wheels sells ownership in Central Motor Wheel Corp.
1998 - Hayes Lemmerz acquires 51% of Automotive Overseas Investments Ltd, the parent
company of NF Die Casting in South Africa
Hayes Lemmerz acquires 100% of Alumitech, a joint venture shared with Asahi Tech.
1999 - Hayes Lemmerz develops Full Face Dual Wheels
2000 - Meritor Group merges with Arvin group to form ArvinMeritor
Hayes Lemmerz introduces "Super Single" Wide Base Truck Wheels Fumagalli develops
"Integrated" wheel as competition to full face wheels
2002 - Hayes Lemmerz develops "Struktur" / VersaStyle Wheel in Hayes Lemmerz Germany
Hayes Lemmerz sells the System Service Division which operated tire and wheel assembly
operations
2003 - Hayes Lemmerz begins aluminum wheel expansions in Thailand, Brazil, and Czech
Republic facilities
2004 - ArvinMeritor/Fumagalli develops theSuperSpoke Wheel In Limiera - Dodge Durango
acquires Hayes Wheels Aluminio, an aluminum wheel joint venture plant in Chihuahua.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
2005 - Hayes Lemmerz sells its aftermarket brake controller business to Hayes Brake Controller
Company
Hayes Lemmerz sells its Commercial Highway Hub and Drum business, including operations in
Berea, KY; Chattanooga, TN; and in Monterey, MX to Precision Partners Holding Co.
Hayes Lemmerz increases its ownership from 40% to 60% in its Turkish wheel joint venture
Hayes Lemmerz sells its Equipment and Engineering subsidiary in Au Gres, MI to a group of
private investors
Hayes Lemmerz announces capacity expansion of its commercial vehicle steel wheel facility in
Chakan, India
2006 - Hayes Lemmerz sells its Southfield, MI ductile iron components machining facility to a
group of private investors
Hayes Lemmerz enters into a technical license agreement with Tolyatinskiy Zavod Stalnih
Kolyos (TZSK) of Togliatti, Russia, a manufacturer of steel wheels
2007 - Hayes Lemmerz sells its aluminum suspension components facilities in Bristol, IN and
Montague, MI to Diversified Machine, Inc.
Hayes Lemmerz completes capacity expansion in Chakan, India and announces groundbreaking
of a new passenger car steel wheel facility in India
2008 - Iochpe-Maxion announces new commercial vehicle steel wheel plant in Nantong, China
2009 - Iochpe-Maxion acquires Fumagalli from ArvinMeritor
Hayes Lemmerz introduction of RRT Technology for Aluminum Wheels
2010 - Iochpe-Maxion acquires steel wheel manufacturing facility outside Mexico City from
Nugar
Hayes Lemmerz develops the 4 Bolt/5 Spoke VersaStyle Wheel
2012 - Iochpe-Maxion acquires Hayes Lemmerz and creates Maxion Wheels from Hayes
Lemmerz, Maxion, and Fumagalli
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
ORGANISATIONAL STRUCTURE:
Customers
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
LEADERSHIP:
The Maxion Wheels leadership team is responsible for ensuring that we continue to meet and
exceed the expectations of our many customers, and for driving our company forward to
continued success.
PRODUCT PORTFOLIO
Different types of wheels are made here, ranging from commercial truck wheels to passenger car
wheels. Militry wheels bus wheels are also made.
Wheel rims range from 5.5-16 to 8.5-20, drop centre wheel rims of 5.5 x 15 and 4.5E x 16 to
8.25 x 22.5 that are designed to reduced weight. The specially designed discs with a back
bending effect imparts more durability, while the 2 –piece design for HCV‘s give grip on the
gutter and are easier for removal and fitment. The 8 hole design improves cooling of the brake
drum –critical in hilly terrains.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Full Face/Integrated :
Maxion Wheels' most commercially successful product innovation in steel wheel technology is
our full face design. The wheel is constructed by incorporating the curb-side flange into the disc,
and then attaching it to the single flange rim with a 360 arc weld. Our proprietary attachment
joint yields the lightest, most mass-efficient steel wheels available in the market, and delivers
increased brake clearance as well as a bold appearance. Cladding can also be applied in-house, as
part of our production process, for a low-cost, lightweight alternative to chrome.
Drop Center :
Nobody has produced more well-attached steel wheels than Maxion Wheels. We combine
decades of experience with excellence in design and manufacturing to deliver the most mass-
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
efficient drop center designs available. We also offer a variety of trim and/or color topcoat paint
options for excellent cross-platform flexibility. By adding styling to the basic black steel wheel,
we can create signature wheels that add visual impact to any car line, as well as excellent cross-
platform flexibility. Styled well-attached steel wheels allow for minimal wheel trim and warranty
issues.
Bead Seat :
By attaching the disc, or wheel center, under the bead seat of the rim we‘re able to increase brake
clearance and style on any given wheel diameter. Bead seat steel wheels are an excellent choice
when brake clearance precludes the use of drop center steel wheels. We can easily design these
wheels for cross-platform usage, allowing our customers to decrease investment costs.
Clads :
Clad wheels are produced by permanently attaching a stainless steel or PC/ABS plastic plate to a
steel wheel. The cladding is frequently chrome-plated, but can also be painted or finished with
premium surfaces such as chrome shadow or platinum chrome, delivering a fresh appearance
without the need for revalidation.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
VersaStyle :
The VersaStyle® (high vent) wheel is our newest innovation in the steel wheel market. This
technology allows us to achieve cast aluminum styling with steel construction, and to support our
customers' need for cross-platform standardization. The VersaStyle wheel is designed to couple
with a variety of claddings so that it can be used across multiple vehicle platforms. This allows
each vehicle to have its own "signature" style without the time and cost of developing individual
wheels. VersaStyle wheels also contribute to better performance by helping to cool the vehicle's
brake rotors.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
CUSTOMERS:
Maxion Wheels serves every major automotive market in the world, and is proud to have
partnered with the most recognizable and respected names in the industry. We are proud to
include the following organizations in our list of partners:
PASSENGER/LIGHT VEHICLE:
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
STATEMENT OF PROBLEM
PROBLEM FORMULATION :
The first and foremost step in any research procedure is problem formulation. It involves
developing and understanding of problem. This step consists of several interrelated tasks and
activities. It is perhaps the most critical stage in marketing research process. If the problem is not
defined or if the uses of research are not made clear then the research result may prove useless to
manager. This step requires a good dialogue between a decision maker and marketing researcher.
This step under goes following activities.
a) Problem Audit
It is the comprehensive and systematic examination of the marketing problem with objective of
understanding its origin and nature.
b) Background Analysis
This is an exploratory analysis devotes to placing the problem in perceptive and perhaps even
providing sufficient information for resolving the problem. It consists of situation investigation,
literature review, opinion sampling.
c) Determining The Researching Task
It includes to the specific set of marketing objectives. It specifies the particular information
needed to be met by research result.
RESEARCH OBJECTIVES :
In Today‟s competitive market, every company wants to know the reasons how one can have the
potential market, which factors enhance the sales & shape the buying motives of customer in a
car, typically its wheel.
The research objectives to be studied in this research are as follows:
1. To study market potential of Steel wheels to Alloy wheels
2. To study customer buying motive towards a particular wheel type.
3. To study the market share of Steel wheels.
RESEARCH METHODOLOGY
INTRODUCTION:
The management decision process has become complex and requires an effective and full proof
management information system. During the year of growing competition, the management
needs more and more rigorous information to either boost sales process of their product or to
maintain the current position in the industry. Market research has today becomes an important
component of the marketing information system, to manage all areas of management in general
and to marketing management in particular.
“Marketing research is the collection, analysis and interpretation of facts and figures
pertaining to marketing management.”
Marketing management needs essential information regarding products, prices, market condition
of demand and supply, customer‘s need and desires, product awareness, competitive decision,
external marketing environment and other factors of marketing thus a systematic approach is
applied termed as research methodology.
Glaser has defined, ―Market research is the application of scientific method of the study of the
factors that affects the buying decision in a given market and the profitability of the business
concerned.‖
METHODS OF RESEARCH :
There are two approaches to conduct a research:
Qualitative Approach- In Qualitative approach, the researcher analyzes the objective and study
it on the basis of a previous case study or a grounded theory. Usually in routine business
scenarios, this approach is used. Some of the most popular qualitative research methods are
Ethnographic, grounded theory, biological, case study, and phenomenological.
Quantitative Approach- On the other hand, this approach adopts experimental and
computational methods. The conclusion is derived after following the rigorous process of
observation made from experimentation performed on the object. Some of the most important
quantitative techniques are inferential, simulation and experimental.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Transport:
The district is well connected with the state capital and surrounding district headquarters through
road and rail linkagaes. The road network consists of Express Highways, National Highways,
State Highways and Major District Roads. The rail network consists of both
broadgauge(Electrified and Non Electrified) double track as well as single track lines. The
district headquarter has connectivity through airways for transport and trade to major airports
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
within the country and to select international destinations. In spite of availability of perennial
river stretches, there is no significant utilization of waterways in the district.
Pune is the leading center for the automotive sector in India; as well as one of the top automotive
centers globally. In the past year alone, 3 massive new plants from General Motors, Volkswagen
and Mahindra & Mahindra were inagurated here. The Chakan-Talegaon Belt is becoming one of
the most dense automotive clusters in the world. The Pune facility manufacturers and assembles
a range of their well known luxury cars. Manufacturing plants like Tata Motors, Mercedes Benz,
General Motors, Volkswagen, Mahindra and Mahindra, fiat are already up and running. Though
little far from city these plant provide a huge market for passenger car wheels. The huge
Pune campus consists of corporate HQ, R&D Center and Manufacturing facility for many of the
cars and trucks OEM‘s.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Primary Data :
Primary data is collected through Survey method. Survey method involves collecting data by
administrating a structured. The questionnaires were prepared using very simple and non-
technical words. To serve the whole hearted co-operation without wasting more time of
respondents, the questionnaire was designed short and to the point covering questions to fulfill
all the objectives.
A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions, or attitudes
of some sample of individuals. As a data collecting instrument, it could be structured or
unstructured.The questionnaire is most frequently a very concise, preplanned set of questions
designed to yield specific information to meet a particular need for research information about a
pertinent topic. The research information is attained from sales representatives, sales managers
and executives dealing with customers.
Secondary Data :
Secondary data is required for collecting information about the industry, manufactures and the
product itself – Wheel. This data is mostly collected from the internet (Google & various related
websites) and reports of automobile industry.
SAMPLE SIZE :
The sample size has been kept to 40 due to the limitations of time and limited number of OEMs
in the decided area. The sampling procedure is simple questionnaire in which questions are asked
and answers are recorded in google forms during the interview. After the sample size is decided,
the next step was to meet the respondent personally and to collect data from them through
personal interviews.
After conducting the personal interview of the respondents, the next step was to arrange the
collected data finally coded and tabulated to obtain the results. The present study used MS Excel
package for the purpose of tabulation, which allows all kind of elementary statistical calculation.
After tabulation the data was ready for calculations to draw necessary inferences.
DATA ANALYSIS & INTERPRETATION
The raw data collected from the survey through Questionnaire do not complete the study itself.
This raw data is collected, tabulated & then analyzed for giving some concrete suggestions and
recommendations. In this chapter, the findings of this survey & their analysis have been recorded
for facilitating analysis & interpretation but before that it is important to under data analysis and
hence explained as below:
Data Analysis is a process of inspecting, cleaning, transforming and modeling data with the
goal of discovering useful information, suggesting conclusions and supporting decision-making.
Data Analysis is defined by the statistician John Tukey in 1961 as "Procedures for analyzing
data, techniques for interpreting the results of such procedures, ways of planning the gathering
of data to make its analysis easier, more precise or more accurate, and all the machinery and
results of (mathematical) statistics which apply to analyzing data.‖
Thus, data analysis is a process for obtaining large, unstructured data from various sources and
converting it into information that is useful for −
Answering questions
Test hypothesis
Decision making
Disproving theories
Data Analysis is a process of collecting, transforming, cleaning, and modeling data with the goal
of discovering the required information. The results so obtained are communicated, suggesting
conclusions, and supporting decision-making. Data visualization is at times used to portray the
data for the ease of discovering the useful patterns in the data. The terms Data Modeling and
Data Analysis mean the same.
The following are the questions which were the part of survey with its most appropriate
interpretation. The answers recorded in the survey are tabulated and represented in the form of
various graphs along with the interpretation.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Type Percentage
Hatchback 49
Sedan 22
SUV 29
Total 100
This data shows the average type of cars the dealers sell.
As the data shows most dealers sell hatchback cars, followed by SUV and then the
sedans.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Wheel Percentage
Steel 52
Alloy 45
Total 100
As per the survey it is found that from the total sales 52% are steel wheels whereas the
alloys of aluminium like the diamond cut constitute around 48 percent market share.
In the study it is found that there are many variants of steel and alloy wheels in the
market and most of them are used not before than a decade in India.
Steels exits from long ago but the quick rise in alloy wheels is changing the interest of the
customers and OEMs towards the combination of the alloy.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Customers may or may not have a preference for the choice of wheels, its depends upon
many factors and OEMs.
It is found in the study that first time buyers usually do not have any preference but the
those who already own a car do their research before buying and these type of customers
might have a preference depending upon what they conclude.
Sometimes they do not have any option and hence they go for the available ones
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
This shows that customers usually prefer Alloy wheels given a choice and not
considering other factors but due to some reason they go for steel wheels.
This shows a clear customer preference towards alloys even when not many of them
know much difference between them.
Only 5 percent said they do not have a choice since they were not aware of advantages
and disadvantages of either of the product.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Price 16 38
Design 22 52
No Choice 4 10
Total 42 100
During the survey it is found that customers want alloy wheels because of the good
design they have which enhances the overall look of the car and makes it look stylish.
Customers go for steel wheels only because they are low cost or when their budget is
low.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Yes 0 0
No 40 100
Total 40 100
Every dealer said that it doesn‘t affect them at all if customer goes for a steel wheel or for
alloy wheel, which means that they do not influence customers to buy any particular type
of wheel, it purely depends upon the customer.
This implies that the OEM‘s don‘t have to worry about the negative marketing of their
product by the sales people or by their competetors.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Alloy 40 100
Steel 0 0
Total 40 100
This is one of the very important questions of the survey since the sales representative are
the best person to understand and know the advantages and disadvantages of steel and
alloy wheels both.
And in the study every dealer informed that if had to buy a car for themselves they
would go for Alloy wheels as they look stylish, provide more stability for driving, better
quality than steel wheels and a few more small reasons.
FINDINGS & OBERVATIONS
2) Steel Usage :
According to the survey, it is found that most of the OEMs use steel Wheels in their cars and
mostly in the low end models as well as middle models. Also Maruti Suzuki and Tata mostly use
steel wheels in there cars. The reason for this is that they have a low budget customer base i.e
usually their customers are npt willing to pay much since these are either first time buyers or
second buyers but with low budget. Alloy wheels cost is very high as compared to the steels
wheels and hence they use steel wheels in most of their models.
The other OEMs use Alloy wheels mostly but because of their customer base and can switch
between steel and alloy according to the requirement of the customers.
3) The Demand :
As found in the study Alloy wheels are in demand in the modern market today. The reason for
this is that Aloy products comes in various different types, styles, shapes, design, etc whereas the
steel wheels have a limited scope in all these. Alloy wheels are made by mixing various different
metals along with Aluminium, which results in different properties as per requirement. In
addition to this, it enhances the look of the overall product.
Steel is used from past many years and with the changing world even this required a change.
Although it cannot be replaced from every field but passenger car segment is certainly on the rise
and an advanced version of steel, the alloys, are now looked as a replacement.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
4) The Customers :
The customer here are divided in two categories if we look at the buying motives towards wheels
only. These first once are those for whom the price doesn‘t matter and are willing to pay
anything for a good product and the second are those for whom price matters a lot. It can be said
that customerus usually do not have a preference but sometimes due to either of these situations
they can tilt towards Steels or Alloys.
One thing is very clear irrespective of the affordability is that both of these want Alloy wheels in
their cars because of good looks & design.
But, according to the area of study the situation might vary, it can be different in diference cities,
states and even in countries.
5) The performance :
It is also found that, with the use of either type of wheels the performance of the cars does
change much. Both of them are equally good in terms of performance, they provide almost the
same braking support. Steel wheels proves just a little better in milege whereas Alloys provide
more handling. If we look at it overall there is not much difference between the two hence can be
replaced and used alternatively.
SUGGESTIONS :
COST : Since the sell of the product depends a lot on its price it is highly suggested that
the price of the wheels should not be increased any further and to increase the sell
manufactures can further cut down the price of the product.
DESIGN : In the whole survey, one thing that was the highlight above all, was the design
of the Steel wheels and alloy wheels. So, steel wheels need a lot of modification in terms
of design and attractiveness (atleast like the new Versastyle wheels). It can be done in
two ways:
Adding wheel caps: Attractive wheel caps can be added to the wheels
which enhances the overall look of the wheel.
Adding wheel disc : Since disc are made separately, alloy wheel disc‘s
can be fixed over the wheels which works like a wheel cap but is more of
a permanent solution.
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
Project learning is a very important part of the project in MBA since it was our primary
objective. It is essential for the development of research skills, intelligent behaviours and
thinking strategies. In project work, I did undertake the creation, execution and finished
production of a survey. The nature of the project is dynamic as it goes through conception,
configuration, contradiction, confusion, reconfiguration and eventually culmination and
celebration. Occasions did arise where I have to deal with situations, to identify and solve
problems, to create new ideas, or to make difficult decisions.
There were three stages in project work in general. In the first level of activities, you select a
project with the help of the teacher. After consulting the teacher for guidelines, you embark
on the initial stage of reading for background information, researching and taking notes,
building a reference list, interviewing experts, viewing films and videos, developing an
outline, talking with peers, surfing the Internet, checking and double-checking sources,
visiting sites, as well as gathering charts, maps and illustrations. Such activities lay the
groundwork for the inventiveness of the latter two stages.
As a project enters the second phase, you begin to try to make sense of the information
collected. You may discover that some information is relevant and some is not. At this level,
you try to analyse whatever information you have, sort the information into meaningful
chunks, and synthesise it in order to move the project forward.
At the third phase, you divide and prioritise tasks, check timelines, take any necessary
emergency measures and stay alert. You perform activities like model building, construction,
assembling, synthesising ideas, rethinking or re-conceptualising, finishing touches,
decorative details, evaluative testing, peer review, self-assessment, evaluation against
criteria, expert review, final submittals and celebrations.
Certain intelligent behaviours are important for successful project work (e.g. curiosity,
openness, reality orientation, objectivity, precision, confidence, responsibility, consensus and
collaboration). When you undertake a project, you focus on not only what you know, but also
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
how you behave when you don‘t know. It is only when you are confronted with questions
and problems for which you do not know the immediate answer that you develop intelligent
behaviours which include persistence, decreasing impulsivity, listening to others, cooperative
thinking, flexibility in thinking, a sense of humour, drawing on past knowledge and applying
it to new situations, and risk taking.
The important thing was to learn the management lessons along with work of a marketer and
understanding the automobile industry. After studing the theoretical aspects in MBA it was
important to apply the knowledge on the field.
For a successful project learning experiment, it is essential for you to have not only a positive
‗I can‘ attitude, but also the ‗I enjoy‘ feeling. Only then will you want to undertake new
projects and to solve new problems; and without realising it, will voluntarily continue to
learn throughout a lifetime.
ANNEXURE
QUESTIONNAIRE:
[Introductory questions]
1. Dealer Name
2. Contact Person
3. Area
4. Manufacturer
[Main questions]
1. Which type of car is sold the most?
Hatchback
Sedan
SUV
2. What is the percentage share for car types?
Percentage ____
3. What Percent cars have steel wheels?
4. Do customers have a preference for a specific wheel type?
Yes
No
Maybe
5. Which metal wheels customers prefer ?
Alloy
Steel
Any
6. What is the reason for the choice of a particular wheel metal type?
Price
Design
No choice
7. Does it affect the dealer if any of the steel or alloy are used?
Yes
No
Maybe
8. What would you choose if you have to buy a car for yourself?
Steel
Alloy
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCE MBA - MARKETING
REFERENCES:
1. www.google.com
2. www.siamindia.com
3. www.team-bhp.com › Team-BHP › BHP India
4. www.autopunditz.com/news/cars/indian-car-sales
5. auto.economictimes.indiatimes.com
6. online.wsj.com/mdc/public/page/
7. https://issuu.com/
8. www.global-innovation.net/projects/grd/india/auto
9. https://www.strategyand.pwc.com/reports/connected-car-2016-study
10. https://www.mckinsey.de/files/automotive_revolution_perspective/
11. www.wikipedia.com
12. https://drupalize.me/blog/201312/
13. http://www.cdtl.nus.edu.sg/success/sl21.htm
14. https://www.canva.com/design
15. www.idc.iitb.ac.in/projects/theory
16. https://msdn.microsoft.com/en-us/library/ez524kew.aspx
17. Costa, A.L. (1991). ‗The Search for Intelligent Life‘. The School as a Home for the Mind.
Arlington Heights, III.: IRI/SkyLight Training & Publishing, 19–31.
18. Fogarty, R. (1997). Problem-based Learning and Other Curriculum Models for the
Multiple Intelligences Classroom. Arlington Heights, III.: IRI/SkyLight Training &
Publishing.
19. https://www.infibeam.com/Books/...t.../indian-automobile-industry.../8131407330
20. www.siamindia.com/publications.aspx?mpgid=42&pgidtrail=44
21. https://www.amazon.com/Best-Sellers-Books-Automotive-Industry/zgbs/books/10514