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SMBD Day

The document discusses the product mix of CEAT Tyres including its length, breadth and width. It provides forecasts for CEAT's sales in the central zone replacement market from FY2023 to FY2024. The forecasts are done using two methods - relying on industry growth trends and relying on the organization's historical growth trends. The forecasts for each product category are provided and it is advised to focus sales efforts on the truck and bus category which has the highest forecasted revenue contribution.

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mimansa.dadheech.25j
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14 views8 pages

SMBD Day

The document discusses the product mix of CEAT Tyres including its length, breadth and width. It provides forecasts for CEAT's sales in the central zone replacement market from FY2023 to FY2024. The forecasts are done using two methods - relying on industry growth trends and relying on the organization's historical growth trends. The forecasts for each product category are provided and it is advised to focus sales efforts on the truck and bus category which has the highest forecasted revenue contribution.

Uploaded by

mimansa.dadheech.25j
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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2024

Group Assignment: - CEAT TYRES

Submitted by-
Mimansa Dadheech
Rajat Jangid
Gargi Verma
Ashish Maheshwari

Submitted to-
Prof. Rahul Meena
Answer 1:

Product mix refers to the variety of products or product lines offered by a company to its
customers. It encompasses all the different types of products or services that a company
manufactures or sells.

Diversification: A diverse product mix includes a wide range of products catering to various
customer needs, preferences, and segments. This diversification helps attract a broader
customer base and mitigates risks associated with relying on a single product or market.

1. Product Mix Length: This refers to the total number of product lines or categories
offered by a company. For example, a company that sells shoes might have product
lines for athletic shoes, dress shoes, sandals, and boots. The total number of these
lines would constitute the product mix length.

2. Product Mix Breadth: Breadth refers to the variety of products within each product
line or category. Using the example of a shoe company, within the athletic shoes line,
there might be various types such as running shoes, basketball shoes, and tennis
shoes. The breadth would be the number of different types of shoes within each line.

3. Product Mix Width: Width refers to the total number of different product lines or
categories offered by a company. This includes all the different types of products a
company sells across all categories. In the example of the shoe company, if they also
sell accessories like socks, shoe cleaning products, and insoles, these would contribute
to the product mix width.

Product mix allows companies to target different market segments effectively. By offering a
variety of products, they can appeal to diverse customer demographics, such as age, income
level, lifestyle, and geographic location and also help in managing the lifecycle of products
from introduction to decline.

Product mix of CEAT Tyres

CEAT Tyres
Forecasting
Use time series
Analysis for
forecasting
(FY2023 and
FY2024) total
sales across all
product
categories.

The Growth rate estimated between FY23 and FY24 is approx. 1.35%

Adjusted FY-24 by (FY-23*(1+1.35%)


We found out the Q1,Q2,Q3 amd Q4 forecast as per the industry growth adjustments

By taking the average of %age


contribution of FY23 and FY24 we
assume the replacement market’s
contribution as 54.5% of sales.

(It was apt to take the average of both years as we lack the historical data for the same to
analyze the trend)

Taking 54.5% of our total


sales forecast of the
financial year 2024
We found out the contribution of Central Zone’s sales in the replacement market as per
the data provided

(We found out the FY24’s %age contribution using the average as we lacked the
historical data to find a trend)

Now we will be showcasing the Central’ Zone’s contribution in replacement market,


category wise: -

By multiplying the estimated contribution per category by the total contribution made
by central team in the replacement market
The target sales forecast for FY24 is as follows -
CENTRAL ZONE OF REPLACEMENT MARKET

Adjusting the price increase

PC/UV and 2/3-wheeler prices are scheduled to be increased by 15 percent, so we


adjusted the amount by (x+(1+%of price increase)).

(These are the Price hikes)

(the overall sheet)


To check if we don't rely only on the industry growth itself for the forecasting, if would be
we able to achieve any closer to these figures by only company growth, we performed a
time series on the organization’s historical data :-

Performed time Series analysis for forecasting FY 2024

(For this also we took the average of the replacement market to forecast 2024 as we lacked
historical data to find a trend.)

And Later adjusted the same with the central zone contribution

Adjusting the total of the central’s Contribution in the replacement market into different
categories

(Forecasting after adjusting the prices)


(the overall sheet)

Comparison of the two forecasting


Forecasted Targets: Central zone; Replacement market

Relied on Industry growth Relied on Org’s growth

The results were observed to be close

Question 3:
The Forecasted revenue contribution for each product category in central’s replacement
market:-

PC/UV: 261.9842758 Rs. Crore


LCV: 118.2315926 Rs. Crore
2/3W: 382.5139761 Rs. Crore
Off Highway: 202.4753821 Rs. Crore
Truck & Bus: 385.3563724 Rs. Crore

1. By comparing these figures, we can see that the”2/3 W” category contributes


382.5139761 Rs. Crore and "Truck & Bus" category has the second highest revenue
contribution of 385.3563724 Rs. Crore
2. Therefore, I advise the zonal sales team to focus on the "Truck & Bus" and 2/3 W
category both to maximize zonal sales value.
3. Highest Revenue Contribution: Among all the product categories, "Truck & Bus"
has the highest revenue contribution of 385.3563724 Rs. Crore. This indicates that
this category generates the most revenue for the company within the zonal sales
region.
4. Market Demand: The high revenue contribution suggests that there is significant
demand for and “2/3 W” and "Truck & Bus" tires within the zonal sales region.
Focusing on this category allows the zonal sales team to meet the existing demand
and capitalize on potential sales opportunities.
5. Strategic Focus: Focusing on one key product category or just 2 allows the zonal
sales team to concentrate their efforts, resources, and marketing initiatives effectively.
This strategic focus can lead to better sales performance and a more targeted
approach to customer acquisition and retention.
But in case to break a tie, our second forecasting done by the organization growth trend
show a little better picture:-

PC/UV 253.463469 Rs. Crore


LCV 112.4055384 Rs. Crore
2/3W 366.8550209 Rs. Crore
Off Highway 194.1866577 Rs. Crore
Truck & Bus 369.5810582 Rs. Crore

Here, by some crore of rupees Truck and Bus has an upper hand and thus the major focus
should be on this.

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