MI P

SUMMER PROJECT REPORT

T O U N D E R S TA N D T H E B U Y I N G B E H AV I O R
A N D P O S S I B L E W AY S T O P E N E T R AT E I N
THE TRAILER AXLE BUSINESS FOR ASHOK
LEYLAND

Industry Guide: Mr. C. Sampath Kumar, Deputy General Manager

(Parts/Marketing)
Submitted in partial fulfillment of the Post Graduate Programme in Management at
TAPMI, Manipal by:
Name: Ankit Arora
Roll No: 14S705
Batch: 2014-16
Date: 27th May, 2015

TAP MI , MANI PAL , KAR N ATA K A - 5 7 6 1 0 4

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ACKNOW LEDGMENTS
It is definitely not possible to prepare a project report without the guidance &
encouragement from a few people. This one is certainly no exception.
I would like to thank all the personages who have helped me in this project. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I am ineffably indebted to Mr. C. Sampath Kumar (Deputy General Manager - Market
planning for commercial and Technical) for conscientious guidance and
encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to Mr. Sreeji J.S (Divisional Manager Market planning, spare parts) & Mr. Thamaraikannan (Deputy Manager, Parts) for
their valuable guidance and support on completion of this project.
I am also thankful to the entire staff of Ashok Leyland for their insights which helped
me in making key decisions for my project.
I extend my gratitude to T.A Pai Management Institute for giving me this opportunity.
Pen ultimately I would like to thank my parents and member of my family, who has
always supported me morally as well as economically.
Last but not least gratitude goes to all of my colleagues who directly or indirectly helped
me to complete this project report.

Thanking You,
Ankit Arora

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EXECUTIVE SUMMARY

TO UNDERSTAND THE BU YING BEHAVIOR AND PO SSIBLE

WAYS TO PENETRAT E IN THE TRAILER AXLE BUSINESS FOR
ASHOK LEYLAND
ASHO K LEYLAND

Ankit Arora
26th May, 2015

This Project is commissioned to augment sales of Ashok Leylands trailer axle with
specific focus on growth volumes in retail.
This Project was an exploratory research and was completed by collecting data
through secondary data, like leaflets of competitors and in-depth interviews from
customers related to trailer axle i.e. mechanics, fleet operators, truck drivers & trailer
manufacturers. In-depth interviews were conducted in Chennai, Vijayawada &
Bengaluru market with Mechanics, Truck Drivers, Fleet owners and Trailer
manufacturer. Quality, maintenance, dealer Network, spare parts availability, brand
value, & after sales support were the factors identified by studying and analyzing the
secondary data. Factors like Credit Policy, Price, Promotional offers, and delivery time
were the factors added to the list after in-depth interviews.
Chennai & Bangalore market is mostly organized, whereas Vijayawada market is
totally unorganized. In Vijayawada market, customers purchase Ashok Leyland axle
but from disposable market.
The main customers who purchase trailer axles are trailer manufacturers in Chennai
and Bengaluru and Fleet operators in Vijayawada. Price, Quality and maintenance are
the main buying behavior factors for the customer.
Websites, Direct sales executives and magazines are the medium mostly preferred by
the customers to know more about the trailer axle market. York & Fuwa were the

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dominant players in Chennai and Bengaluru. Customers preferred them due to the low
price, high quality, very low maintenance, and excellent after sales support.
The result of this project is limited only to the three markets mentioned above.
On the basis of the above findings, it is recommended that

Ashok Leyland must work on its product and try to match the qualitative offering of
York and Fuwa.

Improve customer support.

Provide customized leaf spring seat.

In order to promote its product, Trailer axle needs to be displayed online along with
its technical specifications.

Ashok Leyland should tie-up with new trailer manufacturers.

Open a refurbished store to compete in the disposable market.

Introduce its sub-assembly offerings to trailer axle manufacturers producing inhouse.

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LIST OF FIGURES
Figure 1-Structure of Ashok Leyland Marketing department ........................... 1
Figure 2 - Trailer axle ...................................................................................... 2
Figure 3 - truck with triple axle trailer ............................................................... 3
Figure 4 - Research Methodology ................................................................... 7
Figure 5 - Leaflets of competitors .................................................................... 8
Figure 6 - no. of trailers produced.................................................................. 14
Figure 7 - Vijayawada disposable market ...................................................... 15
Figure 8 - No. of trailers produced by Satrac per month ................................ 16
Figure 9 - No. of trailers produced by T&T pvt ltd ......................................... 17
Figure 10 - Flow chart of tying up with trailer manufacturer ........................... 23
Figure 11 - Business model of tying up with trailer manufacturer .................. 24
Figure 12 - Leaf Spring seat .......................................................................... 25
Figure 13 - Logo for a refurbished store ........................................................ 25
Figure 14 - Business model for a refurbished store ....................................... 26

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LIST OF TABLES

Table 1 - Leaflet comparison of York, Meritor, KKTC and York TATA ........... 11
Table 2- Leaflet comparison of ANG Auto, AAL auto axle, ANG industries,
EICHER ......................................................................................................... 12
Table 3 - In-depth interviews in Chennai ....................................................... 13
Table 4 - SWOT analysis of Ashok Leyland's trailer axle .............................. 21
Table 5 - Competitive comparison with York and Fuwa ................................. 23

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TABLE OF CONTENTS
ACKNOWLEDGMENTS ----------------------------------------------------------------------------------------------------- I
EXECUTIVE SUMMARY --------------------------------------------------------------------------------------------------- II
LIST OF FIGURES ---------------------------------------------------------------------------------------------------------- IV
LIST OF TABLES ------------------------------------------------------------------------------------------------------------- V
1. INTRODUCTION --------------------------------------------------------------------------------------------------------- 1
1.1 ABOUT THE COMPANY ------------------------------------------------------------------------------------------ 1
1.2 ASHOK LEYLAND AFTERMARKET ------------------------------------------------------------------------- 1
1.3 TRAILER AXLE ------------------------------------------------------------------------------------------------------- 2
1.4 THE INDIAN TRAILER MARKET ------------------------------------------------------------------------------ 3
1.5 PRODUCT PORTFOLIO ------------------------------------------------------------------------------------------ 3
1.6 MANAGEMENT DILEMMA--------------------------------------------------------------------------------------- 4
1.7 RESEARCH PROBLEM ------------------------------------------------------------------------------------------- 4
2. RESEARCH OBJECTIVES ------------------------------------------------------------------------------------------ 5
2.1 BENEFITS OF THIS STUDY ------------------------------------------------------------------------------------ 5
3. SCOPE ------------------------------------------------------------------------------------------------------------------------ 6
4. RESEARCH METHODOLOGY ------------------------------------------------------------------------------------- 7
4.1 EXPLORATORY RESEARCH ---------------------------------------------------------------------------------- 7
4.1.1 SECONDARY DATA ----------------------------------------------------------------------------------------- 7
4.1.2 IN-DEPTH INTERVIEWS ---------------------------------------------------------------------------------- 8
4.2 IDENTIFYING THE TARGET CUSTOMER ---------------------------------------------------------------- 8
4.3 DATA COLLECTION ----------------------------------------------------------------------------------------------- 9
4.4 DATA ANALYSIS----------------------------------------------------------------------------------------------------- 9
5. DATA COLLECTION --------------------------------------------------------------------------------------------------10
5.1 STUDY ON SECONDARY DATA -----------------------------------------------------------------------------10
5.2 COLLECTING PRIMARY DATA-------------------------------------------------------------------------------13
5.2.1 CHENNAI MARKET -----------------------------------------------------------------------------------------13
5.2.2 VIJAYAWADA MARKET-----------------------------------------------------------------------------------15
5.2.3 BENGALURU MARKET -----------------------------------------------------------------------------------16
7. KEY FINDINGS & ANALYSIS -------------------------------------------------------------------------------------19
6.1 OTHER FINDINGS -------------------------------------------------------------------------------------------------20
6.2 SWOT ANALYSIS --------------------------------------------------------------------------------------------------21
8. RECOMMENDATIONS -----------------------------------------------------------------------------------------------22
9. LIMITATIONS -------------------------------------------------------------------------------------------------------------28
10. CONCLUSION ----------------------------------------------------------------------------------------------------------28
11. APPENDIX----------------------------------------------------------------------------------------------------------------29
REFERENCES ----------------------------------------------------------------------------------------------------------------33

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1. INTRODUCTION
1.1 ABOUT THE COMPANY
Ashok Leyland is a commercial vehicle company founded in the year 1948. It is
currently the 2nd largest manufacturer of commercial vehicles in India, 4th largest
manufacturer of buses in the world and stands 16th in terms of trucks globally.
Headquartered in Chennai, India, It has a global presence in 50 countries. It is used
by over 70 million passengers to get to their destinations every day while 700,000
trucks keep the economy moving.
Ashok Leyland is jointly ventured with Nissan Motors for LCV, John Deere for
construction equipment, and Continental AG for automotive infotronics, and Alteams
group for high press die casting aluminum components for the telecommunication and
automotive sector.
1.2 ASHOK LEYLAND AFTERMARKET

Ashok
Leyland
Marketing

Bus

Service
Products

Aftermarket

Service

Trucks

Parts

Power
Solutions
Business

Network
Development

Figure 1-Structure of Ashok Leyland Marketing department

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Ashok Leyland is split into four verticals, Bus, Trucks, Power Solution business &
Aftermarket. The Aftermarket division complements the Bus, Truck and Power Solution
division and vice-versa. The main purpose of Aftermarket division is to enhance
customer satisfaction index.
The Aftermarket division consists of three divisions, Parts, Service, & Service products.
The Parts and Service products generate direct revenues to the company.
The Service products division consists of reconditioned engines, extended warranty
policy, extended service policy, annual maintenance contract, insurance, driver
training institute & service training institute.
The service division is split into field service and technical service. The technical
service ensures reliability of the vehicle, provides service manual, product manual etc.
The Parts division consists of two divisions, Leyparts & Valueparts. These two verticals
serve four categories of customers i.e.

Replacement, Institutional, Industrial &

Defence.
The Replacement division consists of captive and the retail market. The Captive
market contains Authorized Service centers, Dealers etc. whereas the Retail market
deals with Retailers, Ashok Leyland Retail Parts Store (ALRPS). The Institutional
market is meant by the State Transport units.

1.3 TRAILER AXLE

Figure 2 - Trailer axle

An axle is a central shaft for rotating wheel or gear and a trailer in simple words is an
unpowered vehicle carried by a powered vehicle. This unpowered vehicle is meant to

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carry loads ranging from small to heavy. Hence a trailer axle is used to guide trailers
to carry loads.

1.4 THE INDIAN TRAILER MARKET

With a market size between 18,000 to 20,000 units per annum, The Indian trailer
market is expected to grow at a rate of 10-15% annually till 2020. It is highly
unorganized and fragmented in nature with a large numbers of smaller players
accounting for over 80% of the production. The organized sector has a handful of trailer
manufacturers, fighting hard to gain acceptance for higher quality trailers. Customers
order for a trailer before buying a vehicle because it takes time for a trailer to be
produced.

Figure 3 - truck with triple axle trailer

Also, many global companies who entered the Indian market recently, like Wal-Mart,
Tesco and IKEA, are bound to replicate their contemporary logistics model followed in
other countries and this is likely to spell good news for the organized sector. The
smaller players would not be able to meet the quality norms and other stringent
demands of these companies. In-order to build quality trailers, quality trailer axles are
required for the businesses to function smoothly.

1.5 PRODUCT PORTFOLIO

Ashok Leyland currently supplies trailer axle with a track length of 1816mm & 1840mm.
This trailer axle is used to carry loads such as cement, steel, market load, container

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etc. The current flow of Ashok Leylands trailer axle is Ashok Leyland Dealer
Retailer/Customer.

1.6 MANAGEMENT DILEMMA

To identify the reasons for dip in sales of trailer axles of Ashok Leyland and ways to
sustain in the market?

1.7 RESEARCH PROBLEM

To understand the buying behavior of the customers while purchasing trailer axle and
finding out possible ways to penetrate in the market.

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2. RESEARCH OBJECTIVES
The Objectives are derived from the Research problem and are divided into four part
I.

To study the current business of organized & unorganized sector of Trailer Axle
manufacturers.

II.

To find out the market share of organized & unorganized Aggregate Suppliers.

III.

To list out the factors that trigger the buying behaviour of trailer axle

IV.

To identify a niche market, if any.

2.1 BENEFITS OF THIS STUDY

Determining the competitors and what are the actions they take to sell their product.

How does the market function and identify the potential buyers in each market.

What are the parameters which influence the buying behaviour of a customer?

Where does Ashok Leyland stand among the customers and its competitors?

To help Ashok Leyland target a niche segment as per their needs.

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3. SCOPE
This Study concerns Trailer Axle market, hence the scope of the project is limited to
customers related to trailer axle i.e. truck drivers, mechanics, fleet operators, and trailer
manufacturers. This Scope is restricted to three markets, Chennai, Vijayawada and
Bengaluru.

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4. RESEARCH METHODOLOGY
4.1 EXPLORATORY RESEARCH
The research carried out in this project was exploratory research. It is one of the most
widely used research methodology. It is a loosely structured design. The basic purpose
is to understand the problem situation and explore it. Exploratory research focusses
mainly on Qualitative data. The answers to the objectives were achieved through indepth interviews and referring to secondary data.

Exploratory
Research

Seconday
Data
In-Depth
Interviews

Identifying
the Target
customers
Data
Collection

Data
Analysis
Figure 4 - Research Methodology
To collect information, the type of sampling method used was Judgmental Sampling.
This type of sampling can be defined as identifying the samples who would provide
quality information based on judgement of the expert in this field.
4.1.1 SECONDARY DATA
To gain some information on the subject, few leaflets & Brochures of various
competitors were studied. This would give us an idea regarding the various competitors
and their Unique selling propositions (USPs). This study helped in identifying a few
parameters which could influence buying behavior.

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Figure 5 - Leaflets of competitors

4.1.2 IN-DEPTH INTERVIEWS
To understand the market and the category of people who use trailer axle in day-today activities, in-depth interviews were conducted. The in-depth interviews were
divided into 3 phases.
1. Chennai
a. Truck Drivers
b. Mechanics
c. Fleet owners
d. Trailer manufacturers
2. Vijayawada
3. Bengaluru
In Chennai, 15 Truck Drivers, 6 Mechanics, 4Fleet operators and 2 Trailer
manufacturers were interviewed. The questions were separate for each category and
were focused on the objectives and some general questions in order to engage the
person.

4.2 IDENTIFYING THE TARGET CUSTOMER

After acquiring rich data from Chennai market, the target category of customers were
identified. Specific customers were targeted based on judgmental sampling and certain

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questions were tweaked based on the inputs in order to receive results based output
from Vijayawada and Bengaluru market.

4.3 DATA COLLECTION

Data was collected through in-depth interviews.

4.4 DATA ANALYSIS

The inputs provided by the target customers were then noted down. These inputs
helped in comparing Ashok Leylands trailer axle with its competitors. Customer
perception regarding trailer axle was found out and parameter while purchasing a new
axle were ranked. Based on the analyzed data, recommendations were provided.

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5. DATA COLLECTION
5.1 STUDY ON SECONDARY DATA
The following table shows the competitor comparison using various leaflets. The USPs mentioned in the leaflet of each brand were noted
and plotted against each other based on the common parameters identified.
Parameter
Strength

York II
MIG welding
between Spindle and
hollow beam ensures
the axle is strong.

Wear resistance

Induction hardened
bearing journal are
more wear resistant
and give high Tyre
life

tyre life

Case hardened
bearings on solid
spindle

Meritor
Induction hardened
spindle for tough
Indian terrain.
Fabricated housings
with optimum
thickness to
withstand abuse and
neglect.

KKTC
York TATA
Spindle and Beam
150x165 rectangular
together as a single
beam is the
piece and No
strongest section, it
welding is done.
reduces deflection
during over loading
Brake Journals are
and bad rod
properly hardened
condition.
and one piece design
makes it fatigue
Solid spindle
proof and long life.
provides extra
strength to the axle
and causes less
deflection during
overloading hence
increasing axle life.

In built technical
details for very good
life.

Low maintenance

Fully enclosed cam

shaft. High
performance grease
along with superior
quality hub seal

Special lithium
grease feasible upto
150,000kms and
check nut hub setting
program

Less deflection of
axle beam leads to
increased tyre life.
Increase in contact of
brake drum and
brake liners
increases the tyre
life.
The solid spindle
causes less
deflection during
overloading leading
to better tyre life.
Induction hardened
bearing journal
allows spindle not to
wear out hence
increasing tyre life.
Better load sharing
between bearings
increases tyre life.
Single spindle nut
and stronger split pin
locking system is
easy to fit leads to
increased tyre life.
High quality of
grease used and it is
required after 1 lac
kms and the hub seal
has a long life too
Hub Greasing can be
done through a
grease nipple saving
maintenance time
and cost and
increase bearing life.
Single spindle nut
and stronger split pin
locking system is
easy to fit
Coarse threaded
wheel bolts avoids
dust and damages

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Parameter
Stud life

York II
Design gives
maximum support to
wheel studs and
brake drum

avoiding frequent
tightening of wheel nut
mechanism

Fine thread studs

Design uses simple

mechanism

Brakeing and Brake liner

life and brake drum life.

Cam shaft
positioning of 22.50.
2 Circlips controls

Meritor

KKTC

camshaft play

Brake spiders are

machined after
welding on axle
beam means better
brakeing

York TATA

Single spindle nut

and stronger split pin
locking system is
easy to fit

Better contact
between brake liners
and brake drum
Better brake
performance and fast
release of brake
shoe, this
performance leads to
increase in brake
liner and brake drum
life.
Use of circlip to
control camshaft play
increases the contact
between drum and
liner hence increase
life of brake drum
components.
Brake drum life is
increased due to
better contact
between brake liner
and brake drum.
3 different Mounting
locations for brake
chambers.

Extra features

Comments

Focuses directly on
the benefits provided
to the customer

Premium quality
range of trailer axles
produced to meet
OEM specifications
by Meritor covering
all major Indian
trailer apps.
Anti-corrosive paint
for longer life.
Wide range of brakes
to suit each and
every vehicle
application.
Market competitive
prices with
unmatched
performance and
durability.
Focuses on
additional features
and technology used
but does not focus
on the direct benefits
to the customer

Fails to highlight the

technical detail for
Tyre life.

Use of O ring outside

cam bush increases
the life of the bush by
not allowing dust to
enter.

Focuses a lot on
Tyre life, low
maintenance and
braking system.
Features and
benefits are also
translated in local
languages.

Table 1 - Leaflet comparison of York, Meritor, KKTC and York TATA

Parameter
Strength

ANG Auto

AAL AutoAxle

ANG Industries

EICHER

Friction welding
technology indirectly
points out the
strength.

Square beam with

friction welded
spindles for reliability
and unmatched

Heavy duty bearing

for higher load.
Single piece hollow
tube square axle
beam.

Strong axle with

thick cross section

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Parameter

ANG Auto

Wear resistance

tyre life

Homogenous
welding of spindle
without any
inclusion.
Low inherent weight
of the axle beam
combined with high
payload capacity.
Forged, quenched
and tempered
spindles with
induction hardened
bearings journals for
optimize wears and
fatigue.
Axle beam is
adapted to maximize
tyre life and reduce
wear.

AAL AutoAxle
strength unlike
conventional weld.

Forged, quenched
and tempered
spindles with
induction hardened
bearings journals for
long life, precise
bearing location and
longer Tyre life.

Forged, quenched
and tempered
spindles with
induction hardened
bearings journals for
long life, precise
bearing location and
longer tyre life.

ANG Industries

Low maintenance

Braking and Brake liner

life and brake drum life.

Hardened brake
shoe for effective
braking.
S CAM brake for
high efficiency.

High performance
brake linings for
extended service life.
Thicker material for
better fatigue life.

S-Cam brake with

hardened brake
webs for effective
and reliable braking
optimized beam,
engineered for low
dead weight, high
payload capacity &
maximum Tyre life.

Mechanism
Extra features

Comments

Long lasting anti

corrosive paint
application.
Completely
interchangeable with
Indian OEM.
Easily available of
spares throughout
India

Focuses on
convenience,
availability and not
much technical
details mentioned
which benefit the
customer.

EICHER

Powerful brake
system with utmost
safety.

Easy to fit assly.

Provides a brief
about the importance
of company's
resources along with
benefits and features
Mentions about how
their product is safe
highlighted key
benefits as well as
in-depth benefits.
Mentions about the
widespread dealer
network.
Highlights the
service department
of eicher including
widespread reach
and facilities
provided for service.

Built to high
engineering standard
& supported by a
nationwide
sales/service/ spare
network.
Easily available in
the market due to
interchangeability
with Indian OEMs.
Focuses on strong
dealer network and
highlights easy
interchangeability.

Provides a 15yr
warranty for axle
beam and 1yr/5000
kms for other parts.

Table 2- Leaflet comparison of ANG Auto, AAL auto axle, ANG industries, EICHER

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5.2 COLLECTING PRIMARY DATA

5.2.1 CHENNAI MARKET
For conducting In-Depth interviews, based on convenience, Chennai market was studied first and areas like Poonamalee and Royapuram
were chosen as these were the areas with decent number of all the four categories of potential customers.
The following table shows the relevant data collected.
Phase I

Location - Poonamalee

INPUTS RECEIVED

Sampling Frame -

Repairs are undertaken by mechanics.

Truck Drivers

Greasing is done around 30,000kms.

No problems with trailer axle.

Phase II

Location Poonamalee,

Sampling frame

Royapuram &

Mechanics

Thiruvottiyur

Awareness on AL axles at different areas were

different.

Meritor and second-hand market were giving a

tough competition.

AL Spare parts of trailer axle were available

easily.

Phase III
Sampling Frame

Location Royapuram

Fleet operators

Low cost, Parts availability, and brand value

were the major factors.

GangaMatha and SaiBaba were the most

preferred trailer manufacturers.

Preference was given to second hand market in

terms of repairs.

Table 3 - In-depth interviews in Chennai

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5.2.1.1 INTERVIEWS WITH TRAILER MANUFACTURER
The main trailer manufacturers of Chennai i.e. GangaMatha Trailers & SaiBaba
Fabrication were interviewed,

SaiBaba
No. of trailer produced
=6

GangaMatha
No of trailer produced
=20

100%
50%

York

York

50%

Fuwa

Figure 6 - no. of trailers produced

Key Highlights of these interviews were

York and Fuwa Axles were preferred.

Customers purchase trailer axles based on Quality, Price, Credit Policy, Spare
parts availability, Delivery time and low maintenance

They prefer one-to-one interaction with the sales team while purchasing axles.

Warranty of 1lakh km and 1yr was provided.

Leaf spring seats are received separately from the trailer manufacturers, as the
seat distance varies accordingly.

Once these interviews were complete, the questionnaire was slightly tweaked and
finalized to understand Vijayawada and Bengaluru market better.

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5.2.2 VIJAYAWADA MARKET

Figure 7 - Vijayawada disposable market

The trailer market in Vijayawada is located in Autonagar. It is completely unorganized.
There is a disposable (second-hand) market located in the heart of Autonagar.
Vijayawada market is completely opposite to Chennai market. Here the fleet owner
purchases trailer axles and not the trailer manufacturer. Disposable market was also
visited, in order to understand the customer needs and the price range paid for a trailer
axle.
The Key Highlights of Vijayawada Market are:

Customers purchase trailer axles only through disposable market.

Ashok Leyland and Railway axles are preferred.

42 nos of trailer axles were sold in last 2yrs.

There is no fixed price in disposable market, the whole market works on bargaining.

Customers do not spend more than 35,000 on a trailer axle as they get good quality
for low price in disposable market.

No initiative was taken by the dealer to improve the sales of trailer axles.

Leaf spring seats are received separately from the trailer manufacturers, as the
seat distance varies accordingly.

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5.2.3 BENGALURU MARKET
Bengaluru is an organized monopolistic market with 2-3 players. Bengaluru has 2 of
the major trailer manufacturers. The trailer manufacturers tie up with companies
producing axles.2 main trailer manufacturers were visited.
1) SATRAC ENGINEERING PVT LTD

Figure 8 - No. of trailers produced by Satrac per month

Satrac produces 100 to 120 trailers per month. To produce these trailers, 80-85 units
of Fuwa axles were used, and the remaining axles used were York and BPW. Based
on the rankings of the parameters, Quality, Price, Maintenance, after sales support
and Brand value were the main parameters for selecting a trailer axle. Here, the trailer
manufacturer purchases from 2-3 dedicated suppliers. Currently York, Fuwa & BPW
are the major suppliers for SATRAC Engineering pvt Ltd.
The Key Highlights from SATRAC were,

The axle length provided by York and Fuwa are 1840 and 1850mm respectively.

Warranty provided by these suppliers is 1yr.

Fuwa is received from Pune and York from North India.

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Estimated cost of a trailer is 52000 including transportation cost.

Credit policy of 2-3months is provided by the supplier.

Credit of 1 month is provided by SATRAC to large parties only.

York and Fuwa are rated high on Quality, Low Maintenance, Price, after sales
support, Spare parts availability etc.

Information regarding new suppliers is received through websites, magazines and

direct sales executives.

Orders from suppliers are received one month in advance.

Ashok Leyland is located 5kms from SATRAC engineering.

Leaf spring seats are received separately from the trailer manufacturers, as the
seat distance varies accordingly.
2) TIPPER AND TRAILER INDIA PVT LTD.

Figure 9 - No. of trailers produced by T&T pvt ltd

Tipper & Trailer India pvt Ltd is located in the outskirts of Bengaluru. Tipper and
Trailer India pvt ltd produces 30-40 trailers per month. 75% of its trailer axles are

P a g e | 18
manufactured in-house. The axle length of these axles are 2700mm. As Ashok
Leyland does not produce that length. Hence is it out of scope. And hence 25% of
the trailer axles are the scope. The Key Highlights of Tipper & Trailer India (T&T)
are

Warranty provided by York is 1yr.

Estimated cost of a trailer axle is Rs 50,000-60,000.

York is supplying its axles from past 5-6 years.

Have not purchased axle with wheel disc till date.

Quality, Price and maintenance are the major parameters while choosing for a
new axle supplier.

T&T Receives a credit policy of 30days from its supplier.

T&T Does not sell trailers on credit.

Sales Executives, through distributor and websites are the preferred means of
knowing a new product.

Leaf spring seats are received separately from the trailer manufacturers, as the
seat distance varies accordingly.

For in-house production of trailer axles, brakes are purchased from TVS brakes ltd,
& Bearings from NDT bearings and Timken bearings.

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7. KEY FINDINGS & ANALYSIS

From Table 1 & Table 2, common parameters were identified. Parameters like
Strength, braking and brake life, low maintenance, extra features were identified.
Strength, braking & brake life leads to Quality as a factor, whereas low maintenance
leads to Maintenance. The extra benefits parameter reveals factors like dealer
network, brand value, spare parts and after sales support.
Based on the Data collected from in-depth interviews, it can be inferred that York &
Fuwa are the major competitors in the organized market and Disposable market is the
major threat in the unorganized market.
The factors which were identified are listed below with a brief description for each,
1. Price: - Price is the most important factor in Vijayawada market. It is one of the top
three parameters for Bengaluru market and Chennai market. Customers in
Vijayawada spend upto Rs.35, 000 for an axle from disposable market, whereas
customers in Bengaluru spend around Rs.52, 000 for a new axle.
2. Quality: - Quality is the most important factor for all the three markets, customers
are happy with a decent quality in Vijayawada market, whereas Bengaluru market
& Chennai market define quality in terms of axle tube strength, durability.
3. Low maintenance: - Low maintenance is one of the top 3 parameters for a
customer to choose, low maintenance refers to no Greasing upto 1lakh km/ 1yr,
improved Tyre life, etc.
4. Brand Value: - Customers in Vijayawada region prefer only Ashok Leyland, this is
due to the image created by its vehicles. Bengaluru market does not focus a lot of
brand and believes that Brand value improves with the quality and price.
5. Dealer Network: - Chennai market receives its axles from a location nearby and
so does Vijayawada market. Bengaluru market receives axles directly from the
manufacturer leading to lesser cost and the order is placed once in a month.

P a g e | 20
6. Delivery time: - Customers in Chennai & Vijayawada receive orders in a day and
Bengaluru receives once in a month.
7. Spare parts availability: - Customers purchasing York and Fuwa have rarely
received any customer complaints from the past 5-6 years. This shows the quality
of axles being provided. And the spare parts of these axles are easily available at
any retailer handling trailer axles.
8. After sales support: - Any problem arising with the trailer axle is handled by the
customer support staff of the trailer axle and relations between York, Fuwa and
their trailer manufacturers are very good in these terms.
9. Promotional offers: - York and Fuwa provide a bulk discount.
10. Credit policy: - Ashok Leyland currently sells its goods only on cash, whereas
York and Fuwa provide credit policy of 2 months.

6.1 OTHER FINDINGS

Bengaluru market is an organized market and it browses online and through

various magazines to know about various trailer axles in the market.

Trailer manufacturers also prefer interaction with direct sales executives, as it

improves transparency.

There is definitely a scope to compete in Bengaluru market, but Ashok Leyland

needs to match its offerings with its competitors.

Ashok Leyland can compete with 100% of the trailer axles of SATRAC and 25% of
the trailer axles of T&T, as the rest 75% of the axles are made in-house of 2700mm
track length.

Trailer manufacturers at Bengaluru have never purchased axles with wheel disc.

In unorganized market, i.e. in Vijayawada, Sales of new trailer axles are very low.
(42 nos in last 2yrs)

Ashok Leyland is preferred in this disposable market.

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6.2 SWOT ANALYSIS
Based on the above findings & analysis, A SWOT analysis on Ashok Leylands axle
was done, this is would be helpful in identifying the key internal and external factors
seen as important to achieve the objectives.

STRENGTHS

WEAKNESSES

Perceived as a strong axle in

Lack of Promotions

Vijayawada.

High Cost of axle

522 outlets including 1S, 2S, 3S,

Unavailability of trailer axles at

AL office, Sales, & Service.

Well-known brand throughout

dealer end

Limited varieties

the country.
*1S- Spares
2S- Spares & Service
3S- Spares, Service & Sales
OPPORTUNITIES

THREATS

Open refurbished Stores

Disposable market

Tie-up

Strong presence of York and

with

new

trailer

manufacturers

niche segment to offer subassembled parts

Fuwa in organized market.

Attractive pricing of York and

Fuwa.

offering Axle with wheel Disc

Table 4 - SWOT analysis of Ashok Leyland's trailer axle

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8. RECOMMENDATIONS
1. TIE-UP WITH TRAILER MANUFACTURERS:It would be difficult for Ashok Leyland to compete in an organized market, as these
trailer manufacturers are having a strong bond with the axle manufacturer. The
following table also shows Ashok Leylands shortcomings compared to its competitors.
Parameter

York

Ashok Leyland

Fuwa

Price

Approx. 52k (FOB

Approx. 67k.

Approx. 52k (FOB

Shipping)

Quality

Warranty

Shipping)

No Greasing upto

No Greasing upto

No Greasing upto

1Lac kms

48K kms.

1Lac kms

1yr (No problems

6months

1yr (No problems

upto 5-6 yrs.)

After Sales

upto 5-6 yrs.)

Very good

Good

Very good

Dealer

Very good

Very Good

Good (Chennai)

network

(Chennai)

(Chennai)

Poor (Bangalore)

Good (Bangalore)

Very Good

support

(Bangalore)
Credit

Yes (30 to 60 Days)

No

Yes

Bulk Discount

No

Bulk Discount

Delivery

1 Day (Chennai)

1 Day

1 Day (Chennai)

time

1 Month

(Chennai)(Assum

1 Month

(Bangalore)

ption)

(Bangalore)

Policy

Promotional
Offers

1 Day (Bangalore)

P a g e | 23

Spare parts

Yes ( Vast

Yes (Vast

Yes ( 28 dealers

availability

Network)

Network)

covering 8 states)

Table 5 - Competitive comparison with York and Fuwa

Also, we know that the sales of trailer axles during the last one year in India is 287
units. For a Dealer, Selling trailer axles is secondary business and for a trailer
manufacturer trailer axle is a primary business. Zero nos sales of Ashok Leyland trailer
axle in the area of SATRAC and T&T (Bengaluru). Hence Ashok Leyland should
develop a new trailer manufacturer where it would recommend its customers to
purchase trailers from them. And this way these trailer manufacturers would purchase
axles from Ashok Leyland.

Ashok Leyland Recommends

Trailer manufacturer during
every vehicle purchase

Trailer Manufacturer
orders axles

Trailer Manufacturer receives

order

Increase in sales of
trailer axles.

Figure 10 - Flow chart of tying up with trailer manufacturer

The Key partners in this business would be Fleet owners, trailer manufacturers, single
vehicles owners and mechanics. In order to improve its presence, it has to continue
maintaining relations with existing trailer manufacturers and find new trailer
manufacturers. It also has to ensure that trailer axles are supplied and received on
time. Selling refurbished axles to trailer axles would provide customers a branded
product with high quality at a comparatively lower price as the dealer profit margin
would be eliminated. The key resources to run this business are IT systems,
manpower, transport facilities and material stock. Customer relations would be

P a g e | 24

Figure 11 - Business model of tying up with trailer manufacturer

maintained through maintaining relations with trailer manufacturers by sales
executives. The channel for distribution would be either by ordering online or through
direct sales executives constantly keeping in touch. The key customers are similar to
key partners. The costs involved during this business would be manufacturing costs,
transportation costs and miscellaneous costs. Revenues would be earned through
sales of trailer axles on recommending the trailer manufacturer tied up with Ashok
Leyland, and through sales of spare parts too.

2. PROVIDE AXLE RELATED INFORMATION ON THE WEBSITE :Organized market refers to online information while seeking for new axles. Ashok
Leyland has not promoted its axle through any medium. Big trailer manufacturers like
Satrac and T&T pvt ltd refer to websites and magazines to know about new trailer
axles. Hence it is necessary to provide information of trailer axles through Ashok
Leylands website.

P a g e | 25

3. SEPARATE LEAF SPRING SEAT :-

Figure 12 - Leaf Spring seat

Ashok Leyland currently provides leaf spring seat welded with the axle, the competitors
provide leaf spring seat separately, this is because in case of Ashok Leyland, the leaf
springs comes in contact with the wheel, and hence they are removed and welded
again. Providing separate leaf spring seat would reduce the labor cost of welding.

4. MATCH FUWA AND YORKS QUALITATIVE OFFERING:Fuwa and York provide a years warranty. There is no greasing required upto 1lakh
km. customers are happy with the support provided to them. Hence it is necessary to
achieve this level of qualitative offering in order to compete in the market.

5. OFFER TRAILER AXLE WITH WHEEL DISC:Currently trailer manufacturers do not purchase trailer axle with wheel disc. Ashok
Leyland provides wheel disc along with trailer axle at a lesser price. Hence it would be
a valuable offering to provide wheel disc.

6. OPEN REFURBISHED STORES :-

Figure 13 - Logo for a refurbished store

P a g e | 26
The disposable market is strong in Vijayawada market as customers are purchasing
trailer axles for lesser price. There is a price difference of Rs. 35,000 approximately.
Customers prefer only Ashok Leyland in disposable market. Hence in order to compete
against such a market. Ashok Leyland must open refurbished stores similar to Maruti
True Value and Mahindra First Choice. This would ensure high quality products are
provided at a lesser price.

Figure 14 - Business model for a refurbished store

The above business model would help in running the refurbished business. Here the
key partners would be the Insurance companies who would help us in identifying the
vehicles which could be used by Ashok Leyland for running its refurbished store.
Mechanics, Fleet operators, trailer manufacturers & vehicle owners are our key
partners too. The key activities which the refurbished store has to perform are to
maintain relations with the insurance agents & customer. It also needs to ensure there
is no delay in sales of parts.
Customers would receive a branded part, with good quality and low price. Its main
channel for sales would be through stores. The customer relationship team must
ensure warranty parts are taken care. Also they would ensure after sales service and
extended warranty. The key customers are same as the key partners excluding

P a g e | 27
insurance companies. The revenue streams for these refurbished stores would be
through sales of trailer axles and would be expanded to other refurbished parts too.

7. PROVIDE SUBASSEMBLIES FOR IN-HOUSE PRODUCTION

Tipper & Trailer India ltd. Produces 75% of its trailer axles in-house. They receive
brakes from TVS brakes, Bearings from NDT Bearings and Timken bearings. This
opens up a new scope to supply sub-assembly to such trailer manufacturers who
produce trailer axles in-house. Such trailer manufacturers need to be identified and
then targeted.

P a g e | 28

9. LIMITATIONS
This project results are limited to Chennai, Bengaluru & Vijayawada market only.

10. CONCLUSION
1. The Trailer axle market in Chennai and Vijayawada is highly un-organized, unlike
the Bangalore market which is completely organized.
2. Trailer manufacturers purchase trailer axles in Chennai and Bengaluru, whereas
in Vijayawada, the fleet operators purchase the trailer axle.
3. The trailer manufactured are of 20ft and 40ft length. The axles used are in the
range of 1814mm to 2700mm.
4. The customers value a trailer axle to be strong, durable, reasonable price with low
maintenance & easily available spare parts.
5. Currently the trailers axles are sold to the dealers and the dealer sells to the
customers.
6. Trailer axles in Vijayawada are purchased from the disposable market at a cost of
Rs.30000 Approx. and the new trailer axles are costing around Rs.67000
Approximately.

P a g e | 29

11. APPENDIX
Questionnaire for Trailer Manufacturers
Customers name
Location
Which Brand Dummy Axle do you use?
TATA
Ashok Leyland
Meritor
York
Fuwa
Other____________.
How many Trailers do you produce per month and dummy axles are used in
what proportion?
Trailer Produced per
month
TATA
1.
2.
3.

4.

Ashok Leyland
Meritor
York
Fuwa
Others
5. Do you prefer different type/grade axle for different application?
If Yes, Kindly Mention
a)
b)
c)
6. Rank the following parameters based on importance to choose a dummy axle
(1-first, 10-last)
Price
Quality
Maintenance
After sales support
Dealer network
Credit policy

P a g e | 30

Promotional offers
Brand value
Delivery time
Spare parts availability
7. How do you come to know about a new brand / model of Dummy axle?
Website
Direct sales( Brochure/Leaflet)
Through Retailer
Through distributor
Magazines
Word of mouth
8. Which mode of communication do you prefer and why?
Website
Direct sales( Brochure/Leaflet)
Through Retailer
Through distributor
Magazines
Word of mouth
9. What is the warranty provided by your suppliers?
Ashok Leyland
TATA
Meritor
York
Fuwa
Others________________.
10. Rate the following dummy axle based on the following parameters (1-Poor, 5Best)
Parameter
Price
Quality
Maintenance
Spare parts
availability
After sales support
Dealer network
Credit policy
Promotional offers
Brand value

Ashok
Leyland

TATA

York

Fuwa

Comments

P a g e | 31
Others
____________
10. Who plays a major role in suggesting the type of dummy axle to be used?
Mechanic
Retailer
Wholesaler
Self
Peers
Dummy axle mfg.
11. Do you suggest dummy axle suppliers to your peers/mechanics/retailer
If Yes, then whom and on what basis
12. What is the life of a new dummy axle?
13. What is the cost price of the trailer?
1-1.5 Lac
1.5-2 Lac
2-2.5 Lac
2.5-3 Lac
3-3.5 Lac
3.5-4 Lac
14. What is the cost of wheel disc cost?
15. What is the cost of dummy axle?
16. What is the cost of 5th wheel coupling?
17. Type of brake chamber you use?(Type 20/24)
18. What is the type of slack adjuster you use? ( Auto/ Man)
19. What is your current tax scheme?
20. Will you be ready to buy
a) Dummy axle with wheel disc
b) Dummy axle with Tyre

Questionnaire for fleet operators

1.
2.
3.
4.

Customer name
Type of business
What are the types of trailers used in your business?
Do you know about the brand of dummy axle you use?
If Yes, Which brand do you use?
TATA
Ashok Leyland
York
Fuwa
Meritor
Others__________.
5. Rank the following parameters based on which your choice of trailer axle
depends upon?

P a g e | 32
Price
Quality
Maintenance
After sales support
Credit policy
Promotional offers
Brand value
Delivery time
6. Who are your trailer suppliers?
a)
b)
c)

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REFERENCES

Alibaba. (n.d.). Retrieved from Alibaba: http://www.alibaba.com/productdetail/Trailer-Axle-axle-for-trailer-or_461024400.html

Ashok Leyland Company overview. (n.d.). Retrieved from Ashok Leyland

Website: http://www.ashokleyland.com/overview

Chawla, D., & Sondhi, N. (2011). Research Methodology: Concepts and

Cases. VIKAS PUBLISHING HOUSE .

MotorIndia. (2015, February 16). Retrieved from Motorindia:

http://www.motorindiaonline.in/applications/krone-to-redefine-indian-trailermarket-with-satrac-partnership/

Trailer. (2015, february 15). Retrieved from WIKIPEDIA:

http://en.wikipedia.org/wiki/Axle