A STUDY ON MARKETING POTENTIAL WITH NERO AIR FILTER CORPORTATION

LIMITED AT COIMBATORE

INTRODUCTION

The environment that your business operates in can be very dynamic. Shifts in economic conditions,
demographic changes, new regulations and changes in technology can all affect the way you do
business.

better understand the characteristics and preferences of your customers

identify opportunities to increase sales and grow your business
monitor the level of competition in your market
reduce the risk in your business decisions
develop and complete your business plan

Established businesses thinking about making significant changes, like business expansion or
relocation, can also use market research to support their decisions. Some other common situations
that might call for market research include:

launching a new advertising campaign

increasing production or stock levels
introducing new lines of products or services

OBJECTIVES OF THE STUDY

This study is undertaken with the following objectives.

To study the factors influencing the purchase of NERO AIR FILTER

CORPORATION LIMITED at Coimbatore among dealers.
To study the factor influencing the purchase of NERO AIR FILTER
CORPORATION LIMITED among consumers.
To study the major avenues to increases the market shares in co.
To study the awareness level of NERO AIR FILTER CORPORATION
LIMITED.

LIMITATIONS OF THE STUDY

The area of study is limited to NERO AIR FILTER CORPORATION LIMITED only.
Hence the results may not be true for other geographical areas. Validity & Reliability of the
data obtained depends on the responses from the respondent. " The time at the disposal of the
researcher was limited. The size of the sample comparing to the population is very less and
hence it may not represent whole population. " The study is about perceptions of people. The
findings are valid only for the present time. These are not universally valid and are likely to
change due to developments in the NERO AIR FILTER CORPORATION LIMITED.

RESEARCH METHODOLOGY

A proper research Methodology is imperative to derive meaningful inferences and

conclusions from the study. The Methodology followed for this study is as follows.

RESEARCH DESIGN

In this survey, the design used is descriptive in nature. The information is collected from the
individuals and analyzed with the help of different statistical tools, for describing the
relationship between various types of variables, pertaining to perception about NERO AIR
FILTER CORPORATION LIMITED. Moreover Cross table Analysis has been done for
processing the data obtained to meet the objectives of the study

DESCRIPTIVE RESEARCH DESIGN

Descriptive research design includes surveys and fact findings enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs, as it exists at
present. In social and business research, we quite often use the term ex post facto research for
descriptive research studies.

The main characteristics of this method is that the researcher has no control over variable, he
can only report what is happening or what was happened. Most ex post facto research
projects are used for descriptive studies in which the researcher seeks to measure such items
for example, frequency of shopping, and preference of the people over similar data.
Descriptive research method will be applicable to the existing problem.

SAMPLING DESIGN

POPULATION

The population constitutes NERO AIR FILTER CORPORATION LIMITED .

SAMPLING TECHNIQUES

The population of the study is dealers and consumers of the NERO AIR FILTER
CORPORATION LIMITED Out of the total population 600 dealers and 100 consumers are
selected as the samples of the study. A Simple Random sampling technique was used to
select the samples from the above population.

SAMPLE UNIT

The sample unit of the study is dealers and consumers. Dealers include partnership firms and
sole proprietors. Consumers include engineer, builders and mason.

SAMPLE SIZE

The number of samples selected from the population constitutes the sample size. A sample
size of 100 was taken. This includes 600 for Dealers, 100 for consumers

SOURCES OF DATA

The Primary Data were collected through questionnaire from Consumers and Dealers.
The Secondary Data were collected from company profile, magazines, market sources
and internet.

DATA COLLECTION METHOD

Structured Questionnaire method is used as an instrument for collecting information from the
individuals. A Pilot study was conducted based on which a few changes were made in the
Questionnaire.

QUESTIONNAIRE

The questionnaire includes both open ended and closed ended questions with multiple
choices, Open -ended questions enable wide range of responses, and this enables the
respondent to express his views in his own words. However this is difficult to tabulate and
analyse. Closed-ended questions offer a limited choice of response .Respondent find it easy
as compared to open ended questions. Closed-ended questions can also be tabulated and
analyzed more easily. The copies of the questionnaire used for both customers as well as
dealers are in the study are in the Annexure 1 and 2.

STATISTICAL TOOLS USED FOR THE STUDY

The data has been analyzed mainly by using the following methods, namely, Percentage
method and weighted average method. Preference of the respondents towards attractive
features in consumers has been analyzed using ranking method

PERCENTAGE ANALYSIS

This is a univariate analysis where the percentage of a particular factor with different
categories is calculated, in order to help one get fair idea regarding the sample and thereby
that of the population

RANKING METHOD

This type of analysis is particularly useful when the purpose of the question is to identify the
preferences of the sample respondents among different choices. The respondents indicated
the importance, which they assigned to level of satisfaction. The ranking was in the order of
1 for most important and 5 for the least important. While doing the analysis the first rank
was given a Weightage of 5 and the least rank was given the Weightage of 1.The rank
assigned by all the respondents was cumulated using the weighted score. Accordingly, the
satisfaction factor with the larger cumulative weightage was ranked number 1 and so on.

REVIEW OF LITERATURE

Gopalaswamy (1999) found that like any market that has seen a demand and awareness
boom, rural India has been witnessing considerable rise in purchasing power and brand
'recognition' (not to be confused with 'awareness'). A change in consumption patterns and
access to communication media have made the rural market a vital cog in the sales-growth
wheel, especially with demand for many categories plateauing in the urban markets.

According to the National Council of Applied Economic Research (NCAER, 2000), with
about 74 per cent of its population living in its villages, India has perhaps the largest potential
rural market in the world. It has as many as 47000 haats (congregation markets), compared to
35000 supermarkets in the US. Plus, of the total FMCGs demand in India, nearly 53 per cent
came from the rural market. The oral care industry, especially toothpastes, remained under
penetrated in rural India with penetration rates below 45 per cent. With rise in per capita
incomes and awareness of oral hygiene, the growth potential was huge

. Badi and Badi(2004) found that the strength of rural marketing laid in the 4A approach-
affordability, acceptability, availability and awareness of consumers, though weakness like
low per capita income and illiteracy can be overcome as more and more companies were
taking interest into rural marketing in India to capture the untapped market. Opportunities for
rural marketing were the vast size of rural market in India, around 128 million households,
huge market potential for FMCG and durable, rise in the literacy level of rural consumers and
easy reach to mass media would pave the greater way for tapping the rural areas.

According to the Ministry of Food Processing (2005), 200 million people expected to shift to
processed and packaged food by 2010, India needed around US$ 28 billion of investment to
raise food processing levels by 8-10 per cent especially in rural areas. While the expenditure
on mass-based, high volume, low margin basic foods such as wheat, wheat flour and
homogenised milk was expected to increase substantially with the rise in population, there
was also a market for branded staples was also expected to emerge.

According to NCAER (2007) rural marketing has become the latest marketing mantra of
most FMCG majors. True, rural India was vast with unlimited opportunities, waiting to be
tapped by FMCGs. So it was not surprising that the Indian FMCG sector was busy putting in
place a parallel rural marketing strategy.

Among the FMCG majors, Hindustan Lever, Marico Industries, Colgate-Palmolive and
Britannia Industries were a few of the FMCG majors who have been gung-ho about rural
marketing. Seventy per cent of the nations population, i.e., rural India, can bring in the
much-needed volumes and help FMCG companies to log in volume-driven growth. Mahesh

Kumar (2008) found that penetration levels as well as per capita consumption of most
product categories like jams, toothpaste, skin care and hair wash in rural India were low,
indicating the untapped market potential. The growing Indian population, particularly the
middle class and the rural segments, presented an opportunity to makers of branded products
to convert consumers to branded products.

The Indian rural market with its vast size and demand base offered a huge opportunity for
investment. Rural India has a large consuming class with 41 per cent of Indias middleclass
and 58 per cent of the total disposable income.
Bhatia(2008) found that rural India has a large consuming class with 41 per cent of Indias
middle class and 58 per cent of the total disposable income. The rural market accounted for
70 per cent of toilet soap users, and almost 50 per cent of TV sets, fans, pressure cookers,
bicycles, washing soaps, detergents, tea, salt and tooth powder. The rural market for FMCG
products was growing much faster than the urban counterpart.

Lokhande(2009) observed that rural India has progressed from the popular perceptions, and
owing to public as well as private options, there was considerable progress in the
communities, both economically and socially. Government schemes like the mid-day meal
scheme and National Rural Employment Guarantee Scheme (NREGS) have increased the
availability of disposable income among the rural consumers. Moreover, younger generations
were looking at alternative sources of income to supplement the income generated through
agriculture. Sharma (2010) found that there were hardly any shops in the 2.30 lakh villages.
As a medium of promotion, haats were very relevant for almost all brands since they
provided a medium to engage an average of 4600 people. Moreover, 17 per cent of Indian
villages accounted for 50 per cent of rural population in India and 60 per cent of rural wealth.

Hagargi(2011) found that rural markets offered immense growth opportunities like untapped
market, large population, first mover advantage, huge scope for penetration etc, at the same
time these markets poses some challenges also. Rural markets were an important and growing
market. And it had become an important one especially for telecom operators in India.
Though characteristics features such as thin population situated at distance from one another,
heterogeneity, low literacy rate limited purchasing power, cyclical cash flows of rural
consumers made them less attractive, but suitable marketing strategy such as bottom of
pyramid. 4As mode availability, acceptability, affordability, and awareness and adopting
some innovative marketing strategies there by creating a win-win situation, can help
companies in tapping the vast rural market.

Glueck and Jauch (1984) suggested concentration, integration, diversification, cooperation,

and internationalization as different routes to expansion. But these strategies did not
necessarily lead to expansion of market for a particular product category.

Brooks (1995) conceptualized market as a set of customers served by a set of suppliers,

where both sets were defined in terms of products and services and in terms of geographic
locations. This meant for each of its products in a chosen geographical area, a company can
have different estimates of market potential depending on the definition of respective
products market boundaries in terms of competition.

Laird and Harman (1997) had presented a model that identified the factors that drove
customer perceptions of value and describes linkages with marketing strategy. The paper
argued that a thorough understanding of customer value drivers can increase the effectiveness
of marketing strategy. Improved customer intimacy was the major pay off.

The value driver analysis can provide critical insights for product and service development
and operational efficiency. The paper proposed a model for linking marketing strategy to the
customer's perceptions of value. It suggested that a deep knowledge of customer value can
improve the processes that create and deliver that value.

Anticipating changes in customer value was critical to the success. Additional attention
should be placed an understanding the impact of the buying situation several. The market
expansion strategy was a strategy of increasing primary demand for a product category by
converting non customers into customers of an industry and/ or by increasing the usage rate
of industrys existing customers.

Focus on increasing the usage rate was especially relevant in case of products with high
penetration levels but low per capita consumption. For example, expansion of market of
consumer non durables (i.e., toilet soaps and detergent cakes/ powders) in India, can take
place through increase in its usage rate (Rao, 2001). Size of the market was measured in
terms of demand.

Demand for a product category as a whole was termed as primary demand while demand for
a particular brand of a product was called selective demand. The upper limit of market
demand was called market potential (Kotler 2001).

In the marketing and strategy literature, primary demand creation and selective demand
creation have been identified as distinct strategic options (Etzel et. al., 2001; Kotler 2001;
Zikmund and dAmico 2001).

Bansh Hari (2002) found that electronic product was looked upon by most people almost as a
natural phenomenon beyond people's control many people have accepted marketing of
electronic products as their career and electronic products have greater effect an society.
Attitude of people towards marketing was positive and marketing of electronic products
powerful enough to promote consumers cultures and value. It was an investment of the future
which manufactures expect would pay off many times more.

. Kim and Mauborgne (2005) conceptualized a blue ocean strategy framework for creation
of demand in an untapped market. They visualized it as an alternative strategy to market
share growth. However, not every one agrees that market expansion and market share growth
were mutually exclusive strategies.

Prahalad (2005) with other scholars like Hammond (2002) and Lieberthal (2005) has
developed a bottom of the pyramid (BOP) marketing framework as a means of expanding
low income markets. In the context of rural marketing, a BOP framework was more relevant
than a blue ocean strategy framework. Although a BOP framework was useful for
development of a general framework for market expansion, conceptually expansions of
markets do not necessarily mean expansion of bottom of the pyramid markets

. A BOP framework put strong emphasis on the creation of consumption capacity among
the poor. However, like a blue ocean strategy framework, it did not adequately address a
very important consumer behavior related issue of how to bring an unwilling customer into
the market. BOP framework also ignored the competitive dimension in the formulation of
strategy. Companies selling in mature markets often took primary demand as given. They
concentrated their marketing resources on building selective demand.

However in countries which were characterized by huge but largely untapped market
potential, some companies attempt to build primary demand as well as preference for their
brands (Kotler and Armstrong 2006). In the strategy literature, the term market expansion
has generally been used in the context of primary demand creation and not selective demand
creation. Walker Jr. et. al., (2006) defined market expansion strategy as stimulating primary
demand to help speed up overall market growth. Hence we concluded that market expansion
means increase in primary demand or increase in market potential for a product category and
not the increase in sales of a specific brand.

Indu and Gupta ( 2007) found that the marketing strategies of the US based motorcycle
manufacturer Harley Davidson Motor Company (H-D) used the marketing mix element
including product, price, distribution and promotion strategies of the company. Not with
standing the success of H-D'S marketing strategies, some critics were of the opinion that the
H-D was not focusing and its core competency i.e. motorcycle and is diluting its brand. The
company has a long way to go in maintaining good relationships with the company's
customers.

Purkayastha and Fernando (2007) found that the absence of a regular marketing department
might prove counterproductive for the company. With the competition in the ethical
cosmetics market expected to increase some experts also felt that lush, which had thus for
remained an independent, The company did not have a traditional marketing department and
retied more an unconventional products, wacky product naves in store advertising, word of
mouth advocacy and public relation.

NERO AIRFILTERS CORPORATION LIMITED, COIMBATORE

COMPANY PROFILE

To manufacture and deliver the finest quality Three Wheeler Rear And Front Wheel Excel,
Two And Three Wheeler Gear Parts and other automobile products, is the sole aim of Nero
Air filters Spare Parts. Recognized as the manufacturer and supplier of auto products like
Three Wheeler Rear and Front Wheel Excel, we have gained a huge market share in India,
especially in New Delhi, the capital of India. The range is precision designed as per the
prevalent standards, which makes it ideal for use in automobiles of all brands.

Established In year: 1998

Company Founder: N.Natchimuthukounder,
The company Managing Director: N.Santhoshkumar.
The company Employees in Workers: 410.
The company locates in: Coimbatore

Business Type

Manufacturer, Supplier

Primary Competitive Advantages

Latest manufacturing processes like molding, forging, machining etc.

Timely delivery of products via client's choice of mode
 Continuous research for better and improved products
Emphasize on client's recommendations and feedback

Product Range

Brake Shoe
Camshaft
Clutch Assembly
Clutch Center Holder
Clutch Hub
Clutch Plate
Friction Free Cable
Gear Parts
Three Wheeler Rear And Front Wheel Excel
Two And Three Wheeler Gear Parts
Valve Set

Vision &Mission Statement

Mission

Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
Continuous technology up gradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
Customer Satisfaction through
Providing quality service effectively and efficiently
Periodic Customer Service Audits
Success through Teamwork, Integrity and People

Vision
 Consistently make good Products at the friendliest Prices.
Constantly Grow in Volume and Value through New Ideas.

INTRODUCTION OF THE ORGANIZATION

Introduction
Automobile industry, the business of producing and selling self-powered vehicles, including
passenger cars, trucks, farm equipment, and other commercial vehicles. By allowing
consumers to commute long distances for work, shopping, and entertainment, the auto
industry has encouraged the development of an extensive road system, made possible the
growth of suburbs and shopping centers around major cities, and played a key role in the
growth of ancillary industries, such as the oil and travel businesses. The auto industry has
become one of the largest purchasers of many key industrial products, such as steel. The large
number of people the industry employs has made it a key determinant of economic growth.

ng of automobiles have become key elements of industrial economies. But along with greater
mobility and job creation, the automobile has brought noise and air pollution and automobile
accidents rank among the leading causes of death and injury throughout the world. But for
better or worse, the 1900s can be called the Age of the Automobile, and cars will no doubt
continue to shape our culture and economy well into the 21st century.

Automobiles are classified by size, style, number of doors, and intended use. The typical
automobile, also called a car, auto, motorcar, and passenger car, has four wheels and can
carry up to six people, including a driver. Larger vehicles designed to carry more passengers
are called vans, minivans, omnibuses, or buses. Those used to carry cargo are called pickups
or trucks, depending on their size and design. Minivans are van-style vehicles built on a
passenger car frame that can usually carry up to eight passengers. Sport-utility vehicles, also
known as SUVs, are more rugged Than passenger cars and are designed for driving in mud or
snow.

In 2007 manufacturing plant in more than 25 countries produced 73.2 million

passenger cars .The automobile is built around an origin various systems supply the origin
with fuel, cool it daring operation, lubricate its moving parts and remove exhaust gases it
creates. The origin produces mechanical power that is transmitted to the automobiles wheels
through adverting which includes a transmission. One or more dive shafts, a differential gear
and axles. Suspension system which includes sparing and shock absorbers, customs the ride
and help protect the vehicle from being damaged by bumps heavy loads and other shersis.
Wheel and tares support vehicles on the road way and when rotated by powered axles, propel
the vehicle forward or backward. Steering speed. Electrical systems starts and operate the
engine monitor and control many aspects of the vehicle operation and powers such
components as head light and radios. Safety features such as bumpers air bugs and seat bells
help protect occupants in an accident.

The history of the automobile actually began about 4,000 years ago when the first wheel was
used for transportation in India. In the early 15th century the Portuguese arrived inching and
the interaction of the two cultures led to a variety of new technologies, including the creation
of a wheel that turned under its own power. By the 1600s small steam-powered engine
models had been developed, but it was another century before afull-sized engine-powered
vehicle was created.

In 1769 French Army officer Captain Nicolas-Joseph Cugnot built what has been called the
first automobile. Cugnots three-wheeled, steam-powered vehicle carried four persons.
Designed to move artillery pieces, it had a top speed of a little more than 3.2km/h (2 mph)
and had to stop every 20 minutes to build up a fresh head of steam. As early as 1801
successful but very heavy steam automobiles were introduced in England. Laws barred them
from public roads and forced their owners to run themliketrains on private tracks. In 1802 a
steam-powered coach designed by British engineer Richard Trevithick journeyed more than
160 km (100 mi) from Cornwall to London.

Steam power caught the attention of other vehicle builders. In 1804 American inventor Oliver
Evans built a steam-powered vehicle in Chicago, Illinois. French engineer
OnsiphorePecqueur built one in 1828. British inventor Walter Handcock built a series of
steam carriages in the mid-1830s thatwereused for the first omnibus service in London. By
the mid-1800s England had anextensive network of steam coach lines. Horse-drawn
stagecoach companies and the newrailroad companies pressured the British Parliament to
approve heavy tolls on steam- powered road vehicles. The tolls quickly drove the steam
coach operators out of business.

During the early 20th century steam cars were popular in the United States. Most famouswas
the Stanley Steamer, built by American twin brothers Freelan and Francis Stanley. AStanley
Steamer established a world land speed record in 1906 of 205.44 km/h (121.573mph).
Manufacturers produced about 125 models of steam-powered automobiles, including the
Stanley, until 1932.

AUTOMOBILES IN THE 20TH CENTURY

For many years after the introduction of automobiles, three kinds of power sources wherein
common use: steam engines, gasoline engines, and electric motors. In 1900 more than2,300
automobiles were registered in New York City; Boston, Massachusetts; and Chicago, Illinois.
Of these, 1,170 were steam cars, 800 were electric cars, and only 400were gasoline cars.
Gasoline-powered engines eventually became the nearly universal choice for automobiles
because they allowed longer trips and faster speeds than engines powered by steam or
electricity. But development of gasoline cars in the early 1900s was hindered in the United
States by legal battles over a patent obtained by New York lawyer George B. Selden. Selden
saw a gasoline engine at the Philadelphia Centennial Exposition in 1876. He then designed a
similar one and obtained a broad patent that for many years was interpreted to apply to
allgasoline engines for automobiles.

Although Selden did not manufacture engines or automobiles, he collected royalties from
those who did. Advances in automobile technology in the 1980s included better engine
control and theuse of innovative types of fuel. In 1981 BayerischeMotorenWerke AG
(BMW)introduced an on-board computer to monitor engine performance. A solar-
poweredvehicle, SunRaycer, traveled 3,000 km (1,864 mi) in Australia in six days.

Other Improvements

During the 1980s and 1990s, manufacturers trimmed 450 kg (1,000 lb) from the weight of the
typical car by making cars smaller. Less weight, coupled with more efficient engines,
doubled the gas mileage obtained by the average new car between 1974 and1995. Further
reductions in vehicle size are not practical, so the emphasis has shifted to using lighter
materials, such as plastics, aluminum alloys, and carbon composites, in the engine and the
rest of the vehicle. Looking ahead, engineers are devising ways to reduce driver errors and
poor driving habits.
Systems already exist in some locales to prevent intoxicated drivers from starting their
vehicles. The technology may be expanded to new vehicles. Anti-collision systems with
sensors and warning signals are being developed. In some, the cars brakes automatically
slow the vehicle if it is following another vehicle too closely. New infrared sensors or radar
systems may warn drivers when another vehicle is in their blind spot.

Catalytic converters work only when they are warm, so most of the pollution they emit occurs
in the first few minutes of operation. Engineers are working on ways to keep the converters
warm for longer periods between drives, or heat the converters more rapidly.

ORGANIZATION STRUCTURE: