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CUSTOMER SATISFACTION AND LOYALTY IN
LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD
A Thesis
Submitted in the partial fulfillment of the requirements for
The award of the degree of
MASTERS IN BUSINESS ADMINISTRATION
BY
RAHUL GUPTA
(5MBA/4038/09)
DEPARTMENT OF MANAGEMENTBIRLA INSTITUTE OF TECHNOLOGY
MESRA-835215 , RANCHI2011
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DECLARATION CERTIFICATEThis is to certify that the work presented in the project entitled
CUSTOMER SATISFACTION AND LOYALTY IN
LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD
in partial fulfillment of the requirement for the award of degree of
MASTER IN BUSINESS ADMINISTRATION
Of Birla Institute Of Technology Mesra Ranchi is an authentic work
carried out under my supervision and guidance.
To the best of my knowledge, the content of this thesis does not form a
basis for the award of any previous Degree to any one else.
Date:- 29/04/2011
Mrs Poorvi Mathur
Department of Management
Birla Institute of Technology
Mesra , Ranchi
Jaipur Campus
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CERTIFICATE OF APPROVAL
The foregoing thesis entitled CUSTOMER SATISFACTION STUDY
- A CASE OF ARB BEARINGS is here by approved as a creditable
study of research topic and has been presented in satisfactory manner to
warrant its acceptance as prerequisite to the degree for which it has been
submitted .
It is understood that by this approval, the undersigned do not necessarily
endorsed any conclusion drawn or opinion expressed therein, but approve
the project for the purpose for which it is submitted.
(Internal Examiner) (External Examiner)
(Chairman)
Head of the Department
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TABLE OF CONTENTS
S. No DESCRIPTION PAGE
NOS.
1 ACKNOWLEDGMENT
2 ABSTRACT
3 CHAPTER-1 INTRODUCTION
4 CHAPTER -2 CONCEPTUAL FRAMEWORK
5 CHAPTER - 3 INDIAN BEARING INDUSTRY- A PROFILE
6 CHAPTER - 4 COMPANY PROFILE
7 CHAPTER - 5 RESEARCH OBJECTIVE AND METHODOLOGY
8 CHAPTER - 6 DATA ANALYSIS AND FINDING9 CHAPTER - 7 CONCLUSION & RECOMMENDATIONS
10 BIBLIOGRAPHY
11 ANNEXURE
ACKNOWLEDGMENT
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Before I begin, I would like to thank a few people who have supported
me throughout the writing of this internship.
I would also like to acknowledge the support & encouragement provided
by Mr. G.S Bhasin & Mrs Poorvi Mathur (guide) for providing me
with detailed responses regarding all my queries and for his insightful
comments regarding the internship topic.
Finally, above all, I would like to thank the almighty without whose
blessings this internship would never been possible.
Thank you all for the time, effort and encouragement shown to me.
ABHISHEK BHURISHRWA
MBA IV SEM
ABSTRACT
The current Indian bearings industry is worth Rs.3500 crore. In this,
automotive segment accounts for 45 percent of the revenues, which
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amount to Rs 1,350 crores and the remaining 55 percent of revenues are
being contributed by industrial demand. In the automotive bearings
market, the organized segment manufactures cater to 50 percent of the
demand. About 15 percent of the production is by the unorganized
segment in India, and the remaining 35 percent of demand is fulfilled
through imports. Out of the total revenues in the automotive segment, 60
percent of the revenues are contributed by the OEMs and the remaining
40 percent is by the demand from the aftermarket. There has been a
growth of 15 percent in the aftermarket segment and OE demand has
increased by more than 25 percent from the financial year 2005-06.
Organizations are increasingly interested in retaining existing customers
while targeting non-customers; measuring customer satisfaction provides
an indication of how successful the organization is at providing products
and/or services to the marketplace.
In this context this study was chosen keeping in view the interests of the
company as well as the researcher. The target aimed by the research was
To identify the customer satisfaction in bearing market in various
regions by interviewing Workshops owners/mechanics and
Distributors/Stockiest of various companies. This meant a lot of exposure
for the researcher as and when he would interact with different people
with different requirements.
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CHAPTER-1
INTRODUCTION
Bearings are "the Essential items" required to reduce or eliminate the
friction between moving parts. Depending on the application there are
different principles on which these bearings are designed and run.
The current Indian bearings industry is worth Rs.3500 crore. In this,
automotive segment accounts for 45 percent of the revenues, which
amount to Rs 1,350 crores and the remaining 55 percent of revenues are
being contributed by industrial demand. In the automotive bearings
market, the organized segment manufactures cater to 50 percent of the
demand. About 15 percent of the production is by the unorganized
segment in India, and the remaining 35 percent of demand is fulfilled
through imports. Out of the total revenues in the automotive segment, 60
percent of the revenues are contributed by the OEMs and the remaining
40 percent is by the demand from the aftermarket. There has been a
growth of 15 percent in the aftermarket segment and OE demand has
increased by more than 25 percent from the financial year 2005-06.
Bearing OEMs in India mainly caters to:
Automobile
General Engineering & Heavy Industries
Electrical equipments.
Though the size of Indian Automobile Industry (except of two wheeler
segment) is very small as compared to Global size, it is the largest User
industry for Indian Bearing Industry. Replacement market is also an
important End user for the Bearings. Growth of Automobile population in
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India also fuels to growth of Replacement market and demand from
vehicle maintenance.
Engineering segment mainly comprises of capital goods and heavy
engineering industry. The demand growth from OE segment here depends
on industrial and infrastructural related activities. Other users includes
mainly railways (using bearings for locomotives, wagons and coaches
etc.).
Indian Bearing Industry constitutes some of the world-class
manufacturers like FAG, SKF, TIMKEN, NBC and Tata Bearings. It also
has a host of small organized and unorganized players catering to the
replacement market. Imports (legal as well as illegal) too is becoming an
important supplier to the Indian bearing consumers.
The economic slowdown besides increasing domestic and global
competition has had its effect on Indian industry. While demand is low,
customers are increasingly looking at both the price and performance. To
counter this increasing expectation all the manufacturers are working to
give their best in terms of price and quality. While this is true for all
products it is very important for Bearing manufacturers.
Today bearing manufacturers are concerned about:
Cost per part
Product Quality - Geometry and Finish
Productivity and Cycle time.
Yield Loss
Manufacturers are constantly looking at new and innovative ways to
modify their process, use best economic viable tools for their production
and achieve best cycle time to reduce their cost per parts & still have the
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best quality bearing produced. Manufacturers of Bearings are thus
looking at Total Solution to their needs.
The fortunes of the bearing industry in India are linked to the growth of
automotive industry. The overall growths in commercial vehicle industry
was at 9.7 % in 2007.OEM industry, such as two-wheeler, are facing
price competition in their own markets and continue to exert price
pressure on local bearing suppliers. The growth of Indian middle class
with increasing purchasing power along with strong growth of economy
over the past few years will accelerate demand from the automotive
industry and other sectors like steel, power & heavy engineering, thus
providing a favorable market environment for the bearing industry.
Over the last few years, there has been sharp increase in the prices of
steel which forms the basic material for bearings and also currently
increase in fuel prices which has affected to the demand of automobiles
and indirectly to the bearing industry. The overall margins of bearings
manufacturer are under severe pressure. The company expects that there
will be a risk on its margins on account of intense competition from the
unorganized sector in the domestic industry and flow of cheap imports of
bearings from china and other low cost countries. To dilute this risk
besides any cyclic fluctuations in bearing demand from Automotive or
various other industries, the company will focus on technologically
advancement and more profitable products/market segments. The
company will continue to work in the areas of higher productivity, better
efficiency and cost reductions in order to grow.
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CHAPTER 2
CONCEPTUAL FRAMEWORK
CUSTOMER SATISFACTION
Customer satisfaction means giving the customers what they really want,
when they want it and the way they want it. It involves understanding
customer expectations and meeting them fully. It can be defined as an
outcome of purchase and use resulting from the buyers comparison of
rewards and the costs of the purchase in relation to the anticipated
consequences. Customer is an individual or an organization. Their
requirements are very similar.
Conformance of services to their requirements and its performance
in actual stage
Competitive prices
Quality and reliability
Prompt delivery
Service
CUSTOMER SATISFACTION NEED
The age of mass production and mass distribution welcomed by most
customers and organizations, has had one negative consequence, it has
distanced those who produce goods and services from those who
consume them. In the era preceding mass distribution, producers found
out very quickly how satisfied or dissatisfied their customers were in the
course of their frequent and necessary interaction with their customer.
This face-to-face interaction reminded the producers daily of thesovereignty of customers. The feedbacks were readily accepted from the
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customers and were adopted for making desired changes to improve their
services and improve customer satisfaction. So customer satisfaction was
a daily phenomenon.
Enter the era of mass distribution and the channels of distribution created
to disseminate products and services. This has resulted in distancing
customers from the producers by the distribution channels. Intermediary
institutions maintained this pipeline of products and services whose job
was to move the product or services from the producer to end customers.
A natural reaction for the producers was to give up or delegate
responsibility for customers servicing, depending on newly created
intermediaries to look after customers satisfaction. Delegating
responsibilities was a bad idea in two respects: first, it eliminated once
and for all direct interaction with customers. Second, customer became a
missing component in the producers decision set.
IMPORTANCE OF CUSTOMER SATISFACTION
Differentiation strategy: -
Satisfaction is quickly becoming the key to competitive posture within an
industry. Initially, products or services secure life in the market by
fulfilling a basic need. But only offering minimal functionality grants a
product nothing than a commodity status. To ensure long-term market
success, businesses have created brands. Brands allowed businesses todevelop and sustain an image, differentiating one anothers products in
the eyes of customer. Today most companies are leveraging branding to
its maximum benefit.
To further differentiate brands, customer satisfaction is the most likely
next strategy. Companies are realizing that the brand that best satisfies its
customers not only keeps them longer, but also benefits from positive
word of mouth.
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Improved profitability: -
There is both an intuitive belief and empirical evidence that improved
customer satisfaction will increase organizational profitability.
Improved customer retention: -
Satisfaction extends customer lifetimes and lifetime values. Also focusing
on satisfaction helps to estimate negative word if mouth of dissatisfied
customers. Losing a not satisfied customer is more severe than it sounds
because one dissatisfied customer may speak to as many as nine others,
increasing its dissatisfaction by nine folds.
Improved market share: -
There are always four sources of business for a firm. Four sources of
customers in any purchase decision have been identified as: retained
customers, customers switching from competition, customers new to the
category and customers leaving the category. Different probabilities of
success are associated
with each of these four classes of customers because retained customers
exhibit probability for additional business, they deserve more attention
and focus than they currently receives.
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Customer Satisfaction has long reaching impact on the current and
perhaps future viability of an organization. The cycle suggests that
satisfied customers tolerate higher margins that can be used to better pay
employees. This boosts employee moral, reducing employee turnover,
which in turn helps to produce more satisfied customers and so on.
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BY PRODUCT OF CUSTOMER SATISFACTION
Thus by enhancing the relations with the customers by taking an initiative
towards their satisfaction thereby attracting them will ultimately improve
their perception of value towards the organization which will lead toincrease in profits.
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ROLES OF CUSTOMER SATISFACTION MEASUREMENT:
Information:
The primary intention for measuring customer satisfaction is to collect
information regarding either what customers report needs to be changed
( in a product , service , or delivery system ) or to assess how well an
organization is currently delivering on its understanding of these needs.
This is an informational role. As such, marketing research and
psychological measurement have much relevance.
Communication:
The very act of surveying customers conveys a very positive message; the
organization is interested in its customers well-being, needs, pleasures,
and displeasures. While this is admittedly a marketing message , there
is nothing wrong in allowing a survey to serve both the informational and
communication roles.
Thus the image of the organization in the customers mind regarding its
offerings becomes the reality related to its products and services offered.
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HOW TO ACHIEVE CUSTOMER SATISFACTION?
CAN 100% CUSTOMER SATISFACTION BE ACHIEVED?
It is not possible to achieve
100% customer satisfaction
ever. Reason being simple
that every time the
organization tries to meet
the customers expectation,
the level of expectation
increases next time thus
there is always some gap between the two. The organization can at least
try to always keep on meeting or staying close to customer expectations
so that the gap between the service expected and actually delivered
doesnt increases leading to dissatisfaction
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IS CUSTOMER SATISFACTION MEASUREMENT STATIC?
As discussed earlier that there is always some between what is expected
and what is actually delivered, thus customer satisfaction measurement
process is dynamic and not static, thus it should be practiced on a
continuous basis for future improvements.
WHOSE RESPONSIBILITY IS TO MEASURE AND MANAGE
CUSTOMER SATISFACTION?
Its the responsibility of the management to take the initiative and
measure the customer satisfaction but it is the responsibility of the whole
organization to manage and improve.
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A nave view of business might suggest that profit is the appropriate goal
of an organization, which is a very shortsighted view. From a practical
viewpoint, the primary goal of an organization has to be customer
retention. Only with a steady base of customers can an organization hope
to make a profit. And only by first satisfying customers can a businessever hope to retain its current customers.
COMPLAINTS AND CUSTOMER SATISFACTION:
Frequently businesses operate on the principle that if things go wrong,
they will hear about it from their customers. Countless investigations
document the fallacy of relying on customer complaints. In the first place,
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50% of customers who experience a problem never complain to anyone!
Of the remaining half, most (45%) complain only to frontline personnel
who either fail to escalate the problem up to management and/or
mishandle solving the problem. Only 5%(one unhappy customers in 20)
of all customers who have a problem actually voice it to management. So,
complaints are an inefficient method with which to monitor customer
satisfaction.
EFFICIENT METHOD OF CUSTOMER SATISFACTION
Thus the organization should take
the initiative to reach out to its
customers for the valuable feedback
related to its products and services
offered. The feedback given should
be analyzed thoroughly to measure
customer satisfaction; this process
should be repeated after a pre
decided gap of time frame not only
to measure but also to improve customer satisfaction in long run.
WHAT IS THE ULTIMATE GOAL?
The ultimate goal of any organization should be to position itself as
a better product and service offering organization through continuous
measurement and management of customer satisfaction.
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CHAPTER 3
INDIAN BEARING INDUSTRY- A PROFILE
The Bearing manufacturing activity in India started in the late 40s with
the production of small and standard bearings.
The Indian industry today manufactures small and medium bearings
mainly in six categories.
1. Ball bearings.
2. Cylindrical roller bearings.
3. Tapered roller bearings.
4. Spherical roller bearings.
5. Needle roller bearings.
6. Cartridge bearings
Bearings are components used to reduce or eliminate friction between
moving parts, which minimises wear and tear of machines and improves
machine performance. There are two types of bearings, ball bearings and
roller bearings. Roller bearings are of different types such as tapered
roller bearing (TRB), spherical roller bearing (SRB), cylindrical roller
bearing (CRB), and needle roller bearings (NRB), which have high end
applications in commercial vehicles, tractors, railways, heavy engineeringand industrial gears. Ball bearings, on the other hand, are used for simple
purposes such as in fans and two wheelers.
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Market Share of Various types of bearings
Ball Bearing
54%Taper Roller
30%
Cylindrical Roller
7%
Needle Roller
6%
Spherical roller
3%
Bearing can be used to provide sliding contact between mating parts or
rolling contact between the mating parts. Hence broadly the bearing can
be classified into two main types:
Plain Bearings: Used to minimize "friction" by providing sliding
contact between mating parts.
Rolling Contact Bearings: Used to minimize "friction" by
providing rolling contact between mating parts.
Plain Bearings: Plain bearings operate on the principle of Boundary
layer lubrication. The load carrying capacity of plain bearings depends on
the type of film which is formed between the mating surfaces.
Rolling Contact Bearings: Rolling Contact substitute a rolling element,
ball or roller, for a hydrodynamic or hydrostatic fluid film to carry an
impressed load without wear and with reduced friction. Because of their
greatly reduced starting friction they have acquired the common
designation of Anti-friction bearings. Normally made with hardened
rolling elements and races, and usually utilizing a separator to space the
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rolling elements and reduce friction, many variations are in use
throughout the mechanical and electrical industry.
Types of Rolling contact bearings: The general types are usually
determined by the shape of the rolling element, but many variations have
been developed which apply conventional elements in unique ways. Thus
special bearings can be procured with races adapted to specific
applications.
Types of Rolling contact bearings:
Ball Bearings
Taper Roller Bearings
Cylindrical Roller Bearings, Spherical Roller Bearings
Needle Roller Bearings.
Characteristics of Rolling Contact Bearings: The static and kinematic
torques of rolling element bearings are generally small and in many
applications are not significant. As compared to sleeve bearings, ball and
roller bearings offer Low starting friction, less axial space, Easy
replacement. For shock loads and heavy loads of short duration roller
bearings are usually preferred.
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Collaboration with foreign companies
Indian company Collaborator
SKF Bearings SKF, Sweden
National Engineering
Industries
NTN, Japan, BRENCO U.S.A. , Izumi Kinzoku
Ltd., Japan
NRB Bearings Torrington, USA & Nadella, France
FAG Precision Bearings FAG, Germany
Timken Timken, USA
Bimetal Bearings Clevite, USA
Tata Bearings -----------
ABC Bearings NSK, Japan
Today the industry is meeting around 70% of its demand for common
varieties and sizes of bearings and rest is imported. The industry has
established a highly diversified product range of around 500 types of
bearings. Automobile industry accounts for bulk of the total demand of
this industry. Given the rising production in auto sector, the demand for
bearings is going to increase in coming years. The production for the
year 2005-06 was 2705 million numbers.
Almost all the units have foreign collaboration. The Indian Bearing
industry makes around 500 types of bearings as against over 30,000 types
of bearings being used by the Indian industry.
In our large country They hardly manufacture 2-3% of the total range
being offered around the world. And the industrial units--however big or
small--are mainly dependent on imported stuff. Our manufacturers in
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India are small producers as compared to the volume of requirements
received by the bearing traders.
DISTRIBUTION OF PRODUCTION:
The bearings industry can be further sub-segmented into ball and roller
bearings. Roller bearings further are of four types - taper, cylindrical,
spherical and needle roller bearings. During the past six years, the highest
growing sub-segments have been cylindrical roller and needle roller
bearings. Both these have grown on a lower base.
Bearing Type Share (%)
Ball Bearing 54
Taper Roller 30
Cylindrical Roller 7
Needle Roller 6
Spherical Roller 3
Distribution Of Production
5430
7 63
Ball Bearing
Taper Roller
Cylindrical
RollerNeedle Roller
Spherical Roller
INDUSTRY STRUCTURE:
Bearing Industry in India can be divided into three segments.
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Industry structure
55%
15%
30%1
2
3
1. Organized sector.
2. Unorganized sector.
3. Imports.
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MARKET SHARE OF MAJOR PLAYERS:
Name of the Company Total Sales in FY 08-09 (In crores)
-SKF 594
-NEI (NBC) 409
-FAG 360
-NRB 225
-ABC 154
-TATA 135
-TIMKEN 126
-HMT 24
-ARB 12
594
409360
225154 135 126
24 120
100
200
300
400
500
600
700
SKF
NEI(NB
C)FA
GNR
BAB
CTA
TA
TIMKE
NHM
TARB
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MARKET DYNAMICS:
Original Equipment Manufacturers (OEM) Market:
The OEM market for bearing represents the demand arising out of
manufacturing new vehicles and industrial manufacturers. The demand
for the OEM market directly depends upon the growth in user industry.
OEM market accounts for 60% of total demand of bearing industry. This
market is characterized by requirements of high quality, stringent delivery
norms and lower margins.
Replacement Market:
The replacement market represents the demand arising on account of
replacing the used and worn-out bearings. The size of replacement market
is dependent on equipment population and frequency of maintenance.
Replacement market accounts for 40% of total demand for bearing
industry. The margins in this market are higher.
The replacement market is highly price sensitive and has higher share of
unorganized players and cheaper imported bearings.
OEM Market 60%
Replacement Market 40%
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Market Dynmics
40%
60%
Replacement
Market
OEM Market
SHARE OF USER SEGMENT:
Automobile:
India is the: -
Largest Three Wheeler Market in the World
2nd Largest Two Wheeler Market in the World
4th Largest Passenger Vehicle Market in Asia
4th Largest Tractor Market in the World
5th Largest Commercial Vehicle Market in the World
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Indian Auto Industry
76%
15%4% 5%
Two Wheelers
Passenger
Cars
Commercial
Vehicles
Three
Wheelers
Engineering: The engineering segment mainly comprises of capital goods
and heavy engineering industry. The demand growth from OEM segment
here mainly depends on the growth of industrial and infrastructure related
activities. Increasing demand for industrial products has boost demand
for engineering goods.
Electrical equipments: Includes manufacturers of fans, compressors,
motors etc. This segment mainly consumes smaller bearings. Both small
and large players manufacture these products.
Railways : Railways is quite a big consumer of bearings in India. It uses
bearings in locomotives, wagons, coaches etc. It requires Roller Bearing
in Axle Box, Spherical Roller Bearing, Cartridge Tapered Roller Bearing
etc.
Sector % Share
Automobile 45
General Engineering 28
Heavy industries including railways 21
Electrical equipment & others 6
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Share of User Segment
45%
28%
21%6%
Automobile
Gen. Engg.
Heavy indusincludingrailways
Elec. Equip.
OPPORTUNITIES FOR THE BEARING INDUSTRY:
1) India is now amongst one of the most preferred destinations for
exporting hub for most of the major global OEM players. Following is
just an extract of list of companies already outsourcing from the country.
Hyundai Export base for small cars
Ford exporting CKDs of Ikon to South Africa and other
countries
Tata Indica being sold in UK under the Rover brand
20,000 pa
Skoda Hub for exports of cars to neighboring countries
General Motors Global Purchasing Team
Volvo Global buying team
Delphi International purchase office
Renault scouting for truck part suppliers
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Toyota is investing Rs 380 crore in a plant to make
manual transmissions. It will supply manual transmission
gearboxes to its worldwide markets, production capacity
160,000 units annually.
Maruti is putting up an Rs 350 crore diesel engine plant.
Maruti plans to start making its own common rail direct
injection diesel (CRDi) engines (using Fiat technology) from
its new plant in Haryana in 2006.
Fiat's India operation is working towards becoming a
global sourcing hub for components. It exported components
worth E7 million last year to its operations in South Africa.
2) Passenger cars estimated to touch two million in 2010 and three
million in 2015.
3) Higher GDP growth.
4) Indias huge geographic spread Mass Transport System
5) Increasing Road Development. E.g. Golden Quadrilateral project,
Pradhan Mantri Gram Sadak Yojna.
6) Replacement of aging four wheelers.
7) Graduating from Two-wheeler to four-wheeler.
8) Increasing dispensable income of rural agricultural sector (more
tractors)
9) Growing Concept of Second Vehicle in Urban Areas.
10) Reduction in excise duty to zero, in the tractor segment.
11) Bearings are used in more than 50 % of the auto compo
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THREATS TO THE BEARING INDUSTRY:
Import Threat:
The custom duty on imported bearings including excise is 36% (aprox.)
expected to come down further in line with WTO agreements. Reduction
in import duty is likely to attract more imports in the future. The imported
bearings are targeted mainly at the replacement market. Imports are
widespread in the case of ball bearings. Coupled with inflow of spurious
products the organized sector is also facing threat from smuggling of
goods. Major imports of ball bearing are from Japan, China, Russia andRomania.
Spurious Products:
Spurious products form a significant part of the Indian bearing market.
Spurious products mainly cater to the replacement market, which is
price sensitive. Spurious bearings are of poor quality and are
relatively unsafe and unreliable. They use material, which are of
inferior quality and the workmanship is also poor. The presence of
unorganized sector in the bearing
Industry poses a real threat to the organised players.
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Increase in Raw Material Prices:
Steel and alloy steel forms the basic material for the manufacturing of
bearings, account for almost 45% of total net sales. A steel price therefore
has significant impact on margins. The significant increase in steel prices
has resulted in pricing and margin pressure on bearing manufacturers.
Companies expect that the steel prices will show an upward trend oratleast remain firm in the coming future.
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CHAPTER 4
COMPANY PROFILE
Much of ARB's success as a bearing manufacturer is largely due to its
passionate pursuit of quality of lower cost. With a tremendous focus on
manufacturing quality bearings and restrains on cost, it comes as no
surprise that ARB bearings is among India's prominent engineering
companies. Headquartered at Delhi, the company was incorporated in
1990. It is run by professionals with over forty years of experience in the
bearing industries. With in a short duration since inception, the company
has carved a niche for itself in various segments ranging from
automobiles to industrial machinery to household appliances.
What was initially a private conglomerate is today a public limited
company with an annual growth rate of 40%. Thanks to the network of its
distributors , dealers and OEMs countrywide, this growth rate has
remained consistent over the years. What's more, with Government Dept.,
State Transport, Ministry of Defence and overseas buyers as clients, it is
also keeping the wheels of the national economy running.
When you buy ARB bearings, you not only buy our products, also buy
peace of mind. Manufactured and tested in hi tech plants with zero
defect products which sets to international parameters, our products are
made for the long haul for various industries.This self assurance comes from the strong infrastructure and
technological capabilities, which is the strength of ARB bearings. From
the material for the bearings to designs to the final production, every
stage is a unique exercise in R&D. They also produce customized
bearings.
They have an entire hierarchy of quality testing systems in place. This
system ensures that everything is up to the specified standards.
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History
1990Company Formed with corporate office as ARB Bearings Pvt. Ltd. In
New Delhi & started Production of Taper Roller Bearings.
1996 Imported equipped Machinery & Precision Testing Equipments.
1996From this year ARB bearings Started its export, initially Exported
bearings to the Middle East.
1997Product range expanded by the Commencement of Spherical &
Cylindrical Roller Bearings.
1997Company was awarded ISO-9002 Certificate by KPMG (Peat Marvick-
USA)
1998 ARBs exports expanded. (Started Exporting to USA & Sri Lanka)
1998Commencement of Ball Bearings into the products line, Production at
separate plant in-Unit-II (Badli)
1999Introduction of UCP (Pillow Block) bearings and production of Double
Row Angular Contact Ball Bearings started.
2000 Commencing of Self Aligning Ball Bearings production.
2000Took over NYK Brg. Co. in Delhi with NYK Brand with a capacity of 6
Million bearings /Annum.
2004 ARBs export touched new heights.
(Existing Production Capacity of all types of bearings increased from 6
Million to 12 Million.)
2007 A new plant started in Himachal Pradesh (K.A.)
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Strengths
There are moments when a telling glance or a passing remark can capture
the essence of a thing. In their case, it's the machine operator's or the
motorist's smile. At the heart of every machine in motion, you will find
ARB bearings performing smoothly and perfectly.
ARB bearings sincerely focuses on the various aspects which creates a
never ending bond between the customers, employees and the company.
The company holds various strength which gives ARB a competitive
edge in the market for which it is highly recommended and popular. The
various principles they follow makes it their strength and helps them to
sustain in the long haul.
High Priority given to Customers Feedback with competitive
pricing.
Integrated manufacturing plant with zero defect products and hi tech machines.
Professional Working Environment.
Potential of increasing productivity at optimal operational costs.
Power to reduce time to market.
They never lose sight of their agreed strategy.
They constantly strive hard to match our products to the
satisfaction of their customers.
Customers are at the center of everything They do and that is reflected
in their companys vision and values. While their vision defines their
destination, their core values serve as their roadmap, guiding their actions
for the benefit of all of their stakeholders.
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VISION
To establish as an international benchmark in quality, innovation,
environmental friendly & competitive organization, specialized in
complete bearings based solutions.
To become the true leaders in the bearing industry by offering quality
products at competitive cost.
Continual improvement & up gradation in the manpower and
machinery by providing in house awareness through training programs
& workshops.
To be a pacesetter for times ahead & the most preferred choice
nationwide & globally.
Dedicated to deliver unparalleled value and innovation all around the
world.
MISSION
To be a true leader in the bearing industry, by expanding into more
automotive and industrial markets and enabling everyone to be
eligible for their services.
To offer bearing industry with superior products & services bybuilding up value for their customers, their business, as well as their
employees and adopting Principles of Excellence that provides an
effective corporate governance framework.
To contribute and participate in the task of nation building use
environmentally safe materials and designs and to make India forward
to the rank of "Most Industrialized Nation in the 21st century".
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Their endeavor to conduct their business affairs with the highest
ethical standards and work diligently to be a respected corporate
citizen worldwide.
Continuous and consistently upgrade their knowledge, skills and work
processes leading to a greater relationship with their customers,
suppliers and community at large. And by expanding into more
automotive and industrial markets.
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PRODUCTS
http://www.arb-bearings.com/needle-roller-bearings.htmlhttp://www.arb-bearings.com/spherical-roller-thrust-bearings.htmlhttp://www.arb-bearings.com/sphericalrollerbearings.htmlhttp://www.arb-bearings.com/cylindrical-roller-bearings.htmlhttp://www.arb-bearings.com/single-direction-thrust-ballbearing.htmlhttp://www.arb-bearings.com/tapered-roller-bearing-products-inches.htmlhttp://www.arb-bearings.com/four-point-contact-ball-bearings.htmlhttp://www.arb-bearings.com/self-aligning-ball-bearings.htmlhttp://www.arb-bearings.com/Angular-contact-double-row-bearing.htmlhttp://www.arb-bearings.com/singlerow-deep-groove-ball-bearing-inches.html -
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http://www.arb-bearings.com/grease.htmlhttp://www.arb-bearings.com/wheel-bearings.htmlhttp://www.arb-bearings.com/steering-bearing.htmlhttp://www.arb-bearings.com/clutch-release-bearing.htmlhttp://www.arb-bearings.com/water_pump_bearings.htmlhttp://www.arb-bearings.com/kingpin_bearings.htmlhttp://www.arb-bearings.com/UC-type-ball-bearings.html -
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Quality Policy
ARB Bearings are proud to be a leading bearing brand of Asia. They have
achieved a new high by creating new ground of targets and quality. Theproduct design starts at understanding the customer requirements in terms
of products quality, cost, delivery and assessing their capability to match
the same. They are equipped with the latest design and modeling tools.
Activities of design and development department are :
Designing ToolsAuto Cad, 3d Modeling, Stress Analysis
Design Systems
3D Problem Solving, Reverse Engineering
Design Review/Verification
Design Lab & Systems
Standards Room
Metallurgical Microscope
Micro Structure
Profile Projecter
Talyrond & Form Talysurf
Roller Sorting Machine
Bearing Noise Level Tester
Bearing Vibration Tester
At ARB Bearings the process approach is adopted for any activity related
to quality. The chains of activities or process are results in the stronger
and defect-free product and service quality. The further activities/process
is monitored and corrective and preventive actions are initiated as and
when required.
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This approach emphasizes the importance of:
Understanding and fulfilling customers requirements.
The process is considered as added value.
Obtaining the performance and effectiveness.
Continual improvement.
Professional Working Environment.
Never losing sight of their agreed strategy.
The inspection and test setup is a tool to evaluate the competitiveness ofbearing industries. At ARB Bearings the world class quality precision
equipments and trained manpower are their valuable assets.
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FINANCIALS
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Infrastructure
Network:
http://www.arb-bearings.com/images/infrastructure10big.gifhttp://www.arb-bearings.com/images/infrastructure8big.gifhttp://www.arb-bearings.com/images/infrastructure6big.gifhttp://www.arb-bearings.com/images/infrastructure4big.gifhttp://www.arb-bearings.com/images/infrastructure3big.gifhttp://www.arb-bearings.com/images/infrastructure2big.gifhttp://www.arb-bearings.com/images/infrastructure1big.gif -
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OEM CHAIN
CLIENTS
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ORGANISATIONAL STRUCTURE
FOUNDER
(SURENDER GOEL,PRAMOD GOEL,VINOD GOEL &SUNIL GOEL)
CEO
(SURENDER GOEL)
COMMUNICATION EXECUTIVE HEAD ORGANISATION EXECUTIVE HEAD
DECISION MAKER HR & COMMUNICATION
MARKETING DOMESTIC MARKETING OEM MARKETING EXPORT
FINANCE PRODUCTION QUALITY CONTROL NBD & PR
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SWOT ANALYSIS
Strength:
Strong R&D department.
Sound HR practices and vast pool of knowledge workers.
Leading manufacturer of Taper roller Bearing.
Accreditation to ISO/TS 16949:2009 CO
Unparalleled range from 20 mm to 2000 mm diameter
bearing, that serves the core sector of transport, thermal power,
steel, heavy industries and many more.
Participation of employees through suggestion schemes,
quality circle, committees etc.
Automation at Taper Bearing assembly.
Distributors across the nation.
Sound marketing system and management.
TQM
Weakness:
Advertising lacks punch not enticing for the end consumer.
Low Exports.
Internationally low brand image.
Focusing on stockiest & business buyer rather than end
consumers.
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COMPETITORS
Major Competitors:
1. SKF
2. FAG
3. NRB
4. TATA
5. TIMKEN
6. ABC
These are the major competitors of ARB.
They have their own strength and weakness. SKF is the biggest
competitor among these.
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CHAPTER 5
RESEARCH OBJECTIVE AND METHODOLOGY
Research Objectives
To analyze the present trends in the Indian bearing industry.
To study the competitiveness of ARB Bearings Ltd. among bearing
manufacturers.
To conduct a end user survey to gauge their satisfaction with
reference to ARB Bearings Ltd. in regards to:
o Product Quality & range
o Price and availability
To analyze the steps taken by ARB Bearings to improve customer
satisfaction.
To study the various steps undertaken by ARB Bearings to
retaining the customers.
RESEARCH METHODOLOGY:-
The methodology adopted for this research was a survey of Distributors,
Spare part Dealers, Mechanics, and workshops of various companies.
These people were asked various questions regarding bearings used in
various vehicles and latest models (existing in Indian market). The survey
was done for two wheelers, three wheelers, four wheelers, MUVs,
LCVs, HCVs.
The sample chosen for research included workshop owners /mechanics
working in and around 20 locations in Delhi. Total number of Workshops
& Distributors/ stockiest took part in this survey were 50.
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The secondary data was collected from various companies
catalogs, which manufacture the bearings in India. Secondary data
were helpful, when survey was done.
Samples for survey:
Workshops for Cars /MUVs /SUVs.
Workshops for Two wheelers.
Workshops for Three wheelers.
Mechanics
Distributors of various bearings Brands.
Spare part dealers also dealing in Bearings.
Workshops of various companies.
SCOPE OF THE STUDY:
The worksheet was administered to the Workshops/Mechanics &
Distributors/Stockiest present in Delhi region. So the received responses
are a picture of market scenario of Delhi only and the results should not
be considered to be representative of the scenario of the whole bearings
industry throughout India or any location other than Delhi. Whatever
conclusion may come out from the survey, the user of the information
should keep this fact in mind that this is only representative of thescenario of Delhis bearing market and the information so obtained
should not be applied elsewhere without proper survey of that particular
area.
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CHAPTER 6
DATA ANALYSIS AND FINDING
B) Specify the brand name of bearing you aware. (Total Respondent:- 50 Retailers)
Brand Name(Variables) Number of Respondent Response (in %)
FAG 50 100
SKF 50 100
NBC 30
HMT 5 10
ABC 15 30
TATA 32 64
DELUXE 25 50
TIMKEN 13 26
NTN 20
ARB 21 42
0
5
10
15
20
25
30
35
40
45
50
FAG
SKF
NBC
HMT
ABC
TATA
DELUXE
TIMKEN
NTN
ARB
Interpretation:- This question is shows the brand awareness in public,
from this interpretation the company can seen their active competitor in
market. From this result company can make their marketing strategy.
Here They can see that SKF, FAG, TATA are active competitor to ARB.
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C) Which brand of the bearing you stock? (Total Respondent:- 50 Retailers)
Brand Name(Variables) Number of Respondent Response (in %)
FAG 40 80
SKF 48 96
NBC 35
HMT 8 16
ABC 27 54
TATA 18 36
DELUXE 11 22
TIMKEN 26 52
NTN 10ARB 16 32
0
5
10
15
20
25
30
35
40
45
50
FAG
SKF
NBC
HMT
ABC
TATA
DELUXE
TIMKEN
ARB
NMB
Interpretation This question shows the brand preference of stockiest.
Which, make company to understand the preference of stockiest so that
they can develop idea to capture new market and sustain in exiting
market. Give idea about promotional activity.
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D) What factor you are considering while stocking any brand? (Respondent:- 50
Retailers)
Variable No of Respondent Response (%)
Demand 45 90
Profit Margin 48 96
Distributor service 35 70
Quality 30 60
Others 20 40
0
5
10
15
20
25
30
35
40
45
50
Demand
Profit Margin
Distributor service
Quality
Others
Interpretation The above question has been formed to know different
factor which is affecting in stock bearings like demand, profit margin,
distributor service, quality and others. According to which I had severed
and find that profit is prime factor of any stockiest and then demand.
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E) Form which sources you aware about ARB bearing? (Respondent:- 50
Retailers)
Variable No of Respondent Response (%)
Advertisement 25 50
Sales man 36 72
Mechanics 38 76
Retailer 18 36
Promotional Activity 20 40
News paper 10 20
0
5
10
15
20
25
30
35
40
Advertisement
Sales man
Mechanics
Retailer
Promotional ActivityNews paper
Interpretation This question is mention that from which source people
can aware about ARB Bearings. And I take in to consideration different
factor from which through salesman and mechanics more number of
people know about ARB Bearings.
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(G) Rate below companys bearing according to its quality. (Respondent:- 50
Retailers)
Variable Excellent Good Satisfactory
FAG 45 5 0
SKF 50 0 0
TIMKEN 18 27 5
TATA 10 28 12
HMT 7 6 12
NRB 15 17 37
ABC 10 20 5
ARB 4 9 13
0
5
10
15
20
25
30
35
40
Advertisement
Sales man
Mechanics
Retailer
Promotional Activity
News paper
Interpretation The above question has been formed to know the quality
rating for different brand of company. You can see that from quality point
of view FAG and SKF is leading the market.
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H) Rate below companys bearing according to its price margin.
Variable Excellent Good Satisfactory
FAG 30 12 8
SKF 35 10 5
TIMKEN 18 27 0
TATA 10 28 7
HMT 7 6 12
NRB 15 17 2
ABC 10 6 0
ARB 4 9 13
0
5
10
15
20
25
30
35
Excellent Good Satisfactory
FAG
SKF
TIMKEN
TATAHMT
NRB
ABC
ARB
Interpretation This question shows that which brand having highest
price margin in the market. From that company can aware that which
brand gives competition on price margin and from how much margin. So
that company also can develop new pricing method which can lead to
success in capturing highest market share. From above graph SKF is
having highest margin, FAG is on second position followed by ARB.
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CHAPTER 7
CONCLUSION & RECOMMENDATIONS
There are so many good competitor of ARB in market like SKF, TATA,
TIMKEN, and NRB. In quality accept SKF & FAG no brands compete
with ARB. All the major player of the organization sector has good
presence in the market as well as Import & Un-organized sector also
plays a crucial role due to its cheaper price and replacement guarantee.
Market potential is increasing at slow pace while supply increasing day to
day due to un-organized and local brand based bearing. In this situationmarket is become more price sensitive .So one can easily enter into the
market on price base. So company has to maintain its quality with low
price. And main thing on which company has to emphasize is local
competitor. Because they sale product with low price and because of that
customer more attract toward them. So market potential of company is
affected due to these local and Chinese brands. So if company have to
maintain there customer and capture new market than they have to
concentrate on price, replacement, service, pricing scheme, advertising,
brand awareness , customer satisfaction and also create good relationship
with customer.
RECOMMENDATIONS
ARB mainly deal with mechanics so they are prime customer of
company. So they have to develop new scheme for them.
Local brands are directly affected to bearing market because of there
low price. So ARB has to maintain its quality and make some pricing
strategy.
Company mainly focused on international level automobile exhibition
or fair for the advertisement of company but at same time they also
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have to participate in some local fair and exhibition so that local
mechanics and end user more come to know about the bearings.
Company must have to improve their relation with retailer because
they thing that ARB bearing is not much interested in replacement
market.
The distributor and Marketing Sales Representative should be advised
to respect the small orders of C class retailer (Sales turn over less then
Rs.4 lakhs) because around 48 % of retailers are C class. As per my
survey TATA bearing have consistent approach towards all the retailer
and also they concentrated on small turn over retailer equally. So ARB
also has give equal importance to C class retailer.
To come in touch with people directly ARB have to give some
advertisement activity like give advertisement in local news papers, or
sponsor some social event.
ARB should increase the range of bearings. ARB manufacturedover 500 types of bearing but it is not enough for existing in long term
market.
ARB is the no. 1 supplier to the Indian railway, so it will be best for
ARB to become no. 1 in other sectors like automobile and industry
also.
ARB is the strong brand in the market so it should keep its popularity
by keeping competitive prices with best quality.
ARB should keep on increasing the range of bearings as the models
launched in the market and before launching the models.
Duplicate bearings are being sold in the market with same packaging
and same printing of ARB . These bearings looks like 100%ARB
bearing, but these bearings have poor quality as compare to real ARB .
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These bearings are spoiling the name of ARB . Because of these
bearings manufacturers and retailers ARB is getting loss and his
image in the market.
While purchasing bearings consumers think they will be using best
quality bearing (ARB ), but these bearings does not work as ARB
bearing does and they get fail very soon. So again consumer does not
purchase ARB .
So it is required to take steps against these manufacturers and whoever
sold these bearings. For keeping best image and getting more profit.
ARB does not have good image and complete range for Tata trucks.
So these bearing should be manufactured for getting profit and
competition to SKF and Timken.
As well as ARB does not have range for latest cars which are being
launched day by day in the market, so there is also required to
manufacture requires bearings for organization growth.
It was seen when survey was being done, that ARB does not give
good schemes like coupons, any other prices to mechanics so they
dont like to purchase only ARB . They like to purchase the bearing
with good quality at reasonable price and which gives them coupons
and other things. So ARB should make some schemes to keep
mechanics happy.
It was seen that advertisements of ARB are not adequate, so there
should be aggressive advertisements.
There is required to meet continuously with mechanics in their own
garage or their workshops.
List of new sizes to be developed is made and is being retained to
organization, as list is confidential.
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BIBLIOGRAPHY
www.bearingsindustry.com
www.tradeinfoline.com
www.bearingtrades.com
www.bearingindia.com
Product Manual of ARB
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ANNEXURE
ANNEXURE I: QUESTIONNAIRE
I am conducting a market research to know the perception and position of
the different wheel bearing companies in the replacement market and also
to know the acceptability of wheel bearing kit. Kindly give your co-
operation in filling this questionnaire and enable us to conduct the
research successful.
(A) Personal Details:-
Name:-______________________________________
Shop Name:-_________________________________
Address of shop:-_____________________________
Years of Experiences:__________________________
(B) Specify the brand name of bearing you aware.
FAG
SKF
NBC
TATA
HMT
ABC
ARB
TIMKEN
NTN
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If other____________
(C) Which brand of the bearing you stock?
FAG
SKF
NBC
TATA
HMT
ABC
ARB
TIMKEN
NTN
If other____________
(D) What factor you consider while stocking any brand?
Demand
Profit Margin
Distributor service
Quality
If other_____________
(E) Form which sources you aware about FAG bearing?
Advertisement
Sales person of company
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Mechanics
Retailer
Promotion activity
News paper
If other___________
(F) What are the reasons you stock FAG bearing?
___________________________________________________________
________
(G) Rate below companys bearing according to its quality.
(1-Excellent ,2-Good,3-Satisfactory)
FAG
SKF
NBC
TATA
HMT
ABC
ARB
TIMKEN
NTN
If other____________
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(H) Rate below companys bearing according to its price margin.
(1-Excellent, 2-Good, 3-Satisfactory)
FAG
SKF
NBC
TATA
HMT
ABC
ARB
TIMKEN
NTN
If other____________
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THANK YOU