apollo tyres
TRANSCRIPT
“Comparative study
Of
Apollo Tyres with other brands in the market”SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Submitted By: Under the Supervision of:
GAURAV KUMAR GARG Dr. SANGEETA GUPTA
1
MBA III SEMESTER READER, DIAS
ROLL NO – 0871233907
DELHI INSTITUTE OF ADVANCED STUDIES
(Affiliated to Guru Gobind Singh Indraprastha University)
(2007-09)
CONTENTS
Certificate of the Company i
Certificate of Originality ii
Preface iii
Acknowledgement iv
Declaration v
Executive summary vi
Chapter 1: Tyre industry- An introduction 2 Market Share of Tyre Industry 5
Chapter 2: Company Profile 7 Vision of Apollo Tyres 9
2
Core Values 9 Apollo and Indian Automakers 10 Growth of Apollo Tyres 11 Manufacturing Facilities 12 Types of Tyres 13 Components of Tyres 14 Product profile 16 Tyres for Trucks and Buses 22 SWOT 25
Chapter 3: Research Methodology 28 Objective of the Research 31 Limitations during Research 32
Chapter 4: Data Analysis & Interpretations 34
Chapter 5: Findings 49 Recommendations 50 Limitations 51 Conclusions 52
BIBLIOGRAPHY 54
ANNEXURE 55 Questionnaire
3
4
CHAPTER1
5
TYRE INDUSTRY –AN INTRODUCTION
Transportation forms an integral part of the infrastructure in any economy.
Adequate transport infrastructure spurs economic activities. In developing
countries like India, transportation is the backbone of the economic development
and prosperity. Since the geographical coverage in India is vast and versatile, road
transport is a very important mode of transportation, second only to railways. The
latter of course joins major cities and towns across the country, but road transport
is equally important as it links up almost all the nooks and corners of the land.
This also connects major ports and city to remotest areas .the tyre industry fulfils
the needs of the road transport sector and plays a very important role in the
automobile industry.
6
INDUSTRY PROFILE
(a) History
The covering for the outer rim of a wheel constitutes a tyre. Most tyres are made
of rubber, reinforced with a kind of fabric and are pneumatic. While we all are
familiar with the invention of the wheel used in its earliest forms in Egypt and
Mesopotamia, the pneumatic tyre came much later.
(b) The Beginning
While the invention of the wheel changed the way we travelled, earlier
automobiles were not very comfortable to ride in. Hard seats and rigid metal
wheels made the journey extremely arduous and literally a pain. Without the
invention of the pneumatic rubber tyres, we would still be rattling around on
wooden or rigid steel wheels.
7
The invention of useful is often attributed to Charles Goodyear. Natural or India
rubber, as it was then known, had few uses. In 1830, Goodyear began
experimenting with raw rubber and brought a truckload and attempted to turn it
into solid. Later, he obtained a product with the consistency of gum. Goodyear
invited some of his friends over to show them the ball of gummy rubber that he
had managed to harden by mixing the rubber with sulphur and treating it with an
acid gas.
The ball accidentally landed on a hot stove, he discovered it has hardened to the
consistency he had been trying to achieve. The process of vulcanization has thus
been born.
In the summers of 1887, John Boyd Dunlop, a physician by profession and a
veterinarian, attempted to make air filled tyres for his son’s bicycle’s to reduce the
drag and improve the ride. He mounted a rubberized fabric on a metal rim, holding
it in position by means of stitching and bolting it. The contraction was then
inflated. Thus came into existence the pneumatic tyres. He patented the pneumatic
bicycle tyre in 1889 to Harvey Du cross jr. who started the Dunlop tyre company.
The tyre then consisted of a rubber tube covered with canvas and attached to the
rim of the wheel by a rubber solution.
(c) Development
In India the tyre industry was born in 1926 with the establishment of the tyre
company – Dunlop Rubber Company. As the automobile sector began to take
8
roots in the country, the tyre industry saw the tyre industry saw the entry of many
players and concurrently grew until the late 70’s. With waves of liberalization
sweeping the land in 1992, the industry saw the entry of many global players as
joint ventures.
Developments in the tyre industry have to be viewed from the perspective of its
strong linkages with performance of the agricultural and industrial sectors, overall
exports, transportation and multiple of other factors. As a result, the tyre industry
operates in an environment which is dynamic and driven by the performance of
other sectors. Performance of the sector is linked to that of automobile and surface
transport sectors.
MARKET SHARE OF TYRE COMPANIES
9
10
CHAPTER2
11
12
COMPANY PROFILE
Organisational Profile
Named after the Greek sun god, Apollo was set up in 1972 in kerala by legendary
Industrialist Mr. Raunak singh. It was that era when hard nosed MNC’s and major
Indian Tyre companies were dominating the Industry. Apollo Tyres Ltd. history
dates back to the early seventies. The company’s license was obtained in 1972 by
Mr. Mathew T Marattukalam, Jacob Thomas and his associates. In 1975 the
company was taken over by Dr. Raunak singh and his associates. The tyre project
was implemented in 1976 in perembra, kerla. The commercial production began in
1977 with an installed capacity of 420,000 each of tyres and tubes.
Despite incurring heavy losses in the initial years, mainly due to the fact that all
tyre majors in those days and high production capacities as compared to the
market demand: Apollo came back as strong player backed by strong production
and marketing strategies.
It was the combined effort of goal oriented people and a clear and adventurous
vision of the top management and its state of the art technology, Apollo, today, is
a name to reckon with, not just in nylon but also in the radial tyre segment. Apollo
tyres have been expanding their capacity of production through building up new
plants and acquiring existing tyre company.
13
With a view to position itself in the premium tyre segment, Apollo decided to
price its brands reasonably higher than its competitors. The rationale behind this
was targeting a customer segment for whom price was almost a non-issue. The key
criterion was product benefit. Premium branding led to development of a niche
that comprised of those who looked for the best tyre and not necessarily the best
bargain.
This not only made the company less vulnerable to recessionary trends in the years
to come, but also in recent times. While the industry has been crying wolf, Apollo
has comfortably weathered the storm of recession. The customer loyalty of Apollo
tyres has become legendary.
Believing firmly in the philosophy of always looking for new answers, Apollo has
all along envisioned action that would challenge the conventional wisdom of the
tyre industry. Call it holistic thinking or innovative marketing strategies. As a
corporation, Apollo has always thrived on a huge challenge, so as to turn them
around to its advantage.
14
VISION OF APOLLO TYRES
A significant player in the global tyre industry and a brand of choice, providing
customer delight and continuously enhancing stakeholder value
CORE VALUES
Care for Customer
Respect for Associates
Excellence through Teamwork
15
Always Learning
Trust Mutually
Ethical Practices
16
APOLLO AND INDIAN AUTOMAKERS
OEM Partners
Apollo had a long standing relationship with various partners in the industry. In
association with partners, Apollo Tyres is in full gear to become “The Tyre”
company of the next generation.
Following are the list of the particular companies:
Type of Tyres/ vehicles Name of the Companies
Heavy & Light Commercial Vehicles Tata Motors, Ashok Leyland,
Eicher, Tatra Udyog, Force
Motors, Swaraj Mazda,
Mahindra, Asia Motors,
Kamaz-Vectra
Farm –tractors Mahindra, TAFE, NewHolland
Tractors, Punjab Tractors,
International Tractors
17
Passenger Vehicles Maruti Suzuki, Tata Motors,
Mahindra, General Motors,
Hyundai Motors, Skoda Auto,
International Cars & Motors
GROWTH OF APOLLO TYRES
18
19
MANUFACTURING FACILITIES
INDIA –FIVE PLANTS
Location Product[s] & Facilities
1 Limda [Baroda], Gujarat Radials & bias, R&D
2 Perambra, Kerala Bias
3 Kalamassery [Cochin], Kerala Bias
4 Kundli, Haryana Retreading
5 Chennai, Tamil Nadu Radials
Limda plant largest tyre plant in India
Dedicated source for tubes in Pune
Harmonious industrial relations
94% capacity utilisation
SOUTH AFRICA -TWO PLANTS
Location Product[s] & Facilities
1 Durban Bias & Radial
2 Ladysmith Radial car
ZIMBABWE -TWO PLANTS•
Location Product[s] & Facilities20
1 Bulawayo Radials & bias
2 Harare Retreading
TYPES OF TYRE
Tyre is a circular cushion of rubber that fits around the rim of a wheel of a vehicle.
It cushions the vehicle from the shocks caused by the movement over hard
surfaces. The most common tyre is pneumatic rubber tyre.
Tyres are basically of two types:-
(a) Bias tyres or Cross Ply
(b) Radial tyres
In cross ply or bias tyres, nylon or rayon tyre cords are arranged diagonally across.
In radials tyres, polyesters, nylon, fibreglass or steel cords are arranged
perpendicular to the circumference.
Radial technology is an improvement over cross ply and radial tyres are priced at
25-30% premium. They are having long lasting and having lower incidence of
flats.
21
COMPONENTS OF TYRE:-
BEAD: - The part of the tyre shaped to fit the rim and hold the tyre to
it.
TREAD: - The part of the tyre which covers in contact with the road and is
made of special rubber compounds.
SIDE WALL: - The part of the tyre between the tread and bead.
SIDE WALL RUBBER: - The rubber layer on the side wall of the tyre
and over the carcass.
CARCASS: - The rubber bonded cord structure of a tyre integral with the
bead and containing the inflation pressure.
22
CORD: - The textile and non-textile thread used in various tyres carcass,
plies, and breaks, etc.
PLY: - A layer of rubber coated fabric cords.
BREAKER: - Intermediate rubberized fabric layers between the carcass
and the tread.
carcas
sidewall
Tread
Bead
Rim size
Ply
Sidewall rubber
23
PRODUCT PROFILE
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27
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29
30
31
32
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TYRES FOR TRUCKS AND BUSES
Sizes & Pattern Application1. 10.00 – 20 18 PR
Loadstar SuperFor Load Lug
2. 10.00 – 20 18 PR8.25 – 20 14 PR
For Load Lug
3. 10.00 – 20 16 PR XT-7 GOLD
For Load and mileage( high, med, load)
4. 10.00 – 20 16 PR XT-7 For Load and mileage( high, med, load)
5. 9.00-20 16 PR XT-7 For Load and mileage( high, med, load)
6. 10.00 – 20 16 PR Commando
For Load and mileage( Low, med load)
7. 12.00 – 20 18 PR Haulug For Load and mileage( Low, med load)
11.00 – 20 16 PR Haulug For Load and mileage( Low, med load)
10.00 – 20 16 PR Haulug For Load and mileage( Low, med load)
8. 10.00 – 20 16 PR AT LUG
9.00- 20 16 PR AT LUG
For mileageFor mileage
9. 10.00 – 20 16 PR Champion
For mileage
10. 10.00 – 20 16 PR Amar Dlx
9.00- 20 16 PR Amar Dlx
High mileage(Optimum retread bulb)
High mileage(Optimum retread bulb
11. 10.00 – 20 16 PR Amar High mileage(Optimum retread bulb
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12. 9.00 – 20 16 PR 3R Optimum mileage
(High- retreadibility ) RIB13. 9.00 – 20 16 PR 16 Super
RibOptimum mileage
(High- retreadibility ) RIB14. 10.00 – 20 16 PR AT-Rib Optimum mileage
(High- retreadibility ) RIB
15. 12.00 – 20 18 PR Cargo-miller
11.00- 20 16 PR Cargo-miller
8.25 – 20 14 PR Cargo-miller
Optimum mileage(High- retreadibility ) RIB
Optimum mileage(High- retreadibility ) RIB
Optimum mileage(High- retreadibility ) RIB
16. 10.00 – 20 16 PR ST-59.00- 20 16 PR ST-5
Semi lug & miningSemi lug & mining
17. 9.00- 20 16 PR AT Rock master
Semi lug & mining
Light commercial
vehicle:-18. 7.50 – 16 16 PR Milestar
8.25 - 16 14 PR MilestarLCVLCV
19. 7.50 – 16 16 PR Loadstar Super
LCV
20. 7.50 – 16 16 PR XT-9 LCV21. 7.50 – 16 16 PR
ChampionLCV
22. 7.50 – 16 16 PR Amar LCV23. 7.50 – 16 16 PR Amar
Dlx8.25 – 16 16 PR Amar
Dlx
LCV
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Jeep Tyres
24. 6.00 – 16 Mahatrooper Jeep25. 6.00 – 16 Trooper
6.40 - 15 TrooperJeepJeep
26. 6.00 – 16 Gripper JeepFarm Tyres
27. 12.4 – 28 Farmking (Radial)
Tractor Rear
28. 9.5 -24 Krishak Super- Rear
12.4 – 28 Krishak Super- Rear
13.6 – 28 Krishak Super- Rear
16.9 – 28 Krishak Super- Rear
18.4 – 30 Krishak Super- Rear
Tractor RearTractor RearTractor RearTractor RearTractor Rear
29. 12.4- 28 Powerhaul13.6 - 28 Powerhaul16.9 - 28 Powerhaul
Tractor RearTractor RearTractor Rear
30. 12.4- 28 Krishak Premium
Tractor Rear
31. 6.00 -16 Krishak Super front
6.50 – 20 Krishak Super front
7.50 -16 Krishak Super front
Tractor RearTractor RearTractor Rear
32. 9.00 -16 Dhruv Tractor Rear33. 6.00 - 19 Bhim
7.00 - 19 Bhim8.00 - 19 Bhim
Animal Driven VehicleAnimal Driven VehicleAnimal Driven Vehicle
Car Tyres
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34. Amazer XL 4 Rib Car Radial35. Amazer XL 5 Rib Car Radial36. Storm Car Radial37. 7.00 R 15 Duramile Car Radial38. Amazer Steel Car Radial39. Amazer Car Radial40. 4.50 – 12 Armour
5.90 – 15 Armour5.20 – 14 Armour5.60 – 13 Armour5.65 – 12 Armour
Car BiasCar BiasCar BiasCar BiasCar Bias
41. 4.50 – 12 PantherF 78 – 15 Panther
Car BiasCar Bias
SWOT ANALYSIS
Strengths
Largest network
Strong brand recall in a price sensitive market
Product innovation & technical superiority
Global quality standard
Dynamic & progressive leadership
37
Willing to implement change
Aggressive Marketing
Excellent services
Huge customer database
Better relations with customer
Weakness
Not having two- wheeler tyres
Low profit margin due to raw material push and inability to pass on
higher cost at customer
Opportunity
Truck bus radial tyres
Intelligence penetration in new markets
38
Highly potential market
Two- wheeler tyres
Threats
Others competitors (China, MRF)
Import from neighbouring countries at competitive price volatility
Continues increase in the price let to shifting of customers on other
comparatively cheaper brands of competitors.
Withdrawing of unconditional warranties in different product SKU’s
like PCR & farm tyres.
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CHAPTER 3
40
RESEARCH METHODOLOGY
It is a systematic designed way, of collection analysis and interpretation of
marketing data to achieve the objective of research. The steps used in the research
methodology are as follows:
STEPS :
Defining the research objective.
Developing the research design.
Developing the research plan.
Collection of information.
Presenting the findings.
Defining the research objective: “A research object is that for which the research
is carried out it tells the purpose of research. The objective of the research was to
determine the market size of Apollo tyres in the market.
Developing the research design: Research design the arrangement of condition
for collection and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure.” In fact, research design is the
conceptual structure within which research is conducted, it constitute the blue print
of the collection, measurement and analysis of data.
41
Keeping in mind the objective of research i.e. “To conduct comparative study of
Apollo Tyres with other brands in the market”.
Developing the research plan: It includes the three steps they are as follows:
Research approaches.
Research instruments.
Sample design.
Research approaches : Observation and survey were the basic approaches
used wherein the truck customers were systematically surveyed. The
research approaches was systematically planned.
Research instruments : The study on customer behaviour was conducted with
the help of questionnaire. The questionnaire was drafted keeping in mind the
customer. The questionnaire contained mix of open and closed dichotomous and
multiple choice questions. The questions were in the form of simple positive
statement. So, a structured questionnaire was used as a research instrument. The
questionnaire was personally filled up through face to face interview with the
truck drivers and owners. The questionnaire so designed was first presented on the
pilot survey of 15 truck drivers the object of which was to find out the strength and
weakness of the questionnaire. After the pilot survey necessary amendments were
made in the questionnaire for administering the final research.
42
Sample design Some time while carrying out the survey it is not possible to
interview and study every individual, which comes under the scope of survey, it
often happens when the size of the universe it quite large. So a relatively small
group of individuals from the universe is selected for the study. The sample was
chosen using non-probability sampling method. Deliberate or judgmental
sampling was employed for the research.
Sample scope: Delhi
Sample Size: 100
Collection of information: The field work was organised and carried out all the
necessary precaution were taken to exclude various errors related to data
collection.
The information for the survey was collected by using both the primary data and
secondary data.
Primary data The primary data was collected afresh through survey and the
interview from the various customers situated at Delhi. A structured questionnaire
was used for this purpose.
Secondary data The secondary data is one which is already available and insure
the avoidance of too much vague questions and has already been proceed by
various researchers. So, the secondary data sources employed for the research
purpose include company journals, business magazines, web site.
43
Analysing the information The analysis has been made as beneficial as
possible. All data collected from the questionnaire of 100 customers were analysed
very carefully to show the exact figure on various types of diagrams. Percentage of
each aspect of the questionnaire is calculated very accurately to show the real
picture of the survey through diagrams in findings.
Presenting the finding The interpretation of the analysis was made on the basis
of the research findings and were presented in a systematic manner. For
interpretation, special graphical tools like bar charts, pie charts were employed.
OBJECTIVE OF THE RESEARCH
MAIN OBJECTVE
To discover the market share of different brands available in the market and the
market leader.
SUB OBJECTVE
To analyse the market share of different brands available in the market
To study the factors influencing purchase decision.
To find the factors which lead to brand switching
44
LIMITATION DURING RESEARCH
The research was limited to Delhi & NCR only.
Customer’s non-responsive behaviour, while conducting observation
was a major limitation.
Conversation problem while asking question to rural customers was a
major problem.
The sample was selected on random basis, therefore can be affected by
researcher’s bias.
Limitation of Time In a short span of 8 weeks for the study the results
accuracy may not be up to the mark.
Limitation of Sample Size Since a limited number of customers were
selected from cities and industrial areas, but not the whole, so the result
was likely to be affected.
45
CHAPTER
4
46
INTERPRETATION
Q: 1- How many vehicle do you have?
PERSON HAVING TRUCKS
No. TRUCK LCV1-2 35 452-4 3 44-10 8 010-20 2 120 & above 2 0TOTAL 50 50
0
5
10
15
20
25
30
35
40
45
50
1-2 2-4 4-10 10-20 20 & above
TRUCK
LCV
47
Q: 2 No. of tyres in your vehicle?
SAMPLE SIZE- 50 TRUCK CUSTOMERSPLACE- AUTOMARKET, TRUCK UNION
COMPANY TYRES %APOLLO 182 28.8888889MRF 86 13.6507937JK+VIKRANT 94 14.9206349CHINA 137 21.7460317BIRLA 16 2.53968254CEAT 112 17.7777778GOODYEAR 3 0.47619048TOTAL 630 100
48
TYRES
0% APOLLO28%
MRF 14%JK+VIKRANT
15%
CHINA22%
BIRLA3%
CEAT18%
GOODYEAR0%
APOLLO
MRF
JK+VIKRANT
CHINA
BIRLA
CEAT
GOODYEAR
SURVEY IN L.C.V. STANDSAMPLE SIZE-50 L.C.V. CUSTOMERS
COMPANY TYRES %APOLLO 310 75.79MRF 76 18.58CEAT 19 4.65JK 4 0.98TOTAL 409 100
49
TYRES
APOLLO
MRFCEAT JK
APOLLO
MRF
CEAT
J K
FITMENT SURVEY SIZE-100PLACE- TRUCK UNION, DELHI
COMPANYRIB TYRE (no's)
% SHARE
APOLLO 64 32MRF 20 10JK TYRES 60 30CEAT 18 9
50
BIRLA 32 16CHINA 4 2MICHELIN 2 1TOTAL 200 100
RIB TYRES
APOLLO32%
MRF10%JK TYRES
30%
CEAT9%
BIRLA16%
CHINA2%MICHELIN
1%
APOLLO MRF JK TYRES CEAT BIRLA CHINA MICHELIN
COMPANYLUG TYRE (no's)
% SHARE
APOLLO 132 25.4
51
MRF 110 21.2JK TYRES 90 17.3CEAT 38 7.3BIRLA 28 5.4CHINA 110 21.2MICHELIN 12 2.3TOTAL 520 100
LUG TYRES
APOLLO26%
MRF22%JK TYRES
17%
CEAT7%
BIRLA5%
CHINA21%
MICHELIN2%
APOLLO MRF JK TYRES CEAT BIRLA CHINA MICHELIN
52
Q: 3 What is monthly avg. running?Ans.
AVG. RUNNING OF TRUCK PER MONTH
K.M. TRUCK LCV0-10000 26 4210000-20000 24 820000-30000 0 030000-40000 0 0
0
5
10
15
20
25
30
35
40
45
0-10000 10000-20000 20000-30000 30000-40000
TRUCK
LCV
Q: 4 Avg. monthly running of truck tyre?Ans.
AVG. RUNNING OF TRUCK TYRE
K.M. TRUCK LCV
53
40000 3 650000 20 1060000 12 870000 & above 15 26TOTAL 50 50
0
10
20
30
40
50
60
40000 50000 60000 70000 & above TOTAL
TRUCK
LCV
Q: 5 How frequently you purchase tyre of which company?
Ans. Mostly customers replied that they change tyres according to requirement and season (like they purchase less in monsoon). Some times tyre runs more then expectation and some times vice-versa.
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Q: 6 How many tyre company’s you are aware?
Ans.
Include both truck and LCV
AWARENESS OF CUSTOMERS
COMPANY COSTUMER AWAREApollo 100MRF 100JK 78Ceat 70Birla 82Other* 85
* other include china & local tyres
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COSTUMER AWARE
0
20
40
60
80
100
120
Apollo MRF JK Ceat Birla other*
COSTUMER AWARE
Q: 7 How many brands you know of which company?
Ans. Many customers of light commercial vehicle drivers and owners told about size despite of name.
SURVEY SIZE – 50 TRUCK, 50 LCV
COMPANY AWARENESS TRUCK LCV
56
APOLLO 28 37MRF 22 23J.K. 18 4BIRLA 8 0CEAT 16 2OTHER* 15 0
AWARENESS TRUCK
APOLLO, 28
MRF, 22J.K., 18
BIRLA, 8
CEAT, 16
OTHER*, 15 APOLLO
MRF
J.K.
BIRLA
CEAT
OTHER*
57
AWARENESS LCV
APOLLO56%
MRF35%
J.K.6%
BIRLA0%
CEAT3%
OTHER*0%
APOLLO
MRF
J.K.
BIRLA
CEAT
OTHER*
Q: 8 Which tyre do you prefer to buy first?
Ans. Some of the customers give preference to more than one company (like in LCV). And some customers do not give any preference. But they are less.
Sample size-50 in truck, 50 in LCV
PREFERENCE OF THE CUSTOMER
COMPANY TRUCK LCV
APOLLO 18 40
MRF 7 12
CEAT 2 3JK 9 1BIRLA 3 0OTHER 11 0
58
18
7
2
9
3
11
40
12
31 0 00
5
10
15
20
25
30
35
40
45
APOLLO MRF CEAT JK BIRLA OTHER
TRUCK
LCV
Q: 9 Brand loyalty if any, reason.
Ans.
LOYAL TO THE BRAND
TRUCK LCV
LOYAL 19 26
NOT LOYAL 31 24
TOTAL 50 50
59
TRUCK
TRUCK
TRUCK
LCVLCV
LCV
0
10
20
30
40
50
60
LOYAL NOT LOYAL TOTAL
TRUCK
LCV
No. of Loyal customers
Company Truck LCV
Apollo 12 18
MRF 2 8
Ceat 1 0
China Radial 4 0
60
Apollo, 12
MRF, 2Ceat, 1
China, 4
Apollo, 18
MRF, 8
Ceat, 0 China, 00
2
4
6
8
10
12
14
16
18
20
Apollo MRF Ceat China
Truck
LCV
Q: 10 Why do you think Apollo tyre is best from others?
Ans. (for those customers who are using Apollo tyres)
ATTRIBUTE IMPORTANCE(No. of customers) %
PRICE 70 35QUALITY 104 52AVAILABILITY 8 4AFTER SALE SERVICE
18
9TOTAL 200 100
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Q: 11 your suggestion to the company?
Ans. Suggestions are given in the column of “recommendations.”
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CHAPTER 5
63
FINDINGS
In L.C.V. segment Apollo tyres is having advantage over its competitors.
In the L.C.V. segment the brand loyalty is on the top.
In the truck category Apollo is getting cut throat competition from its
competitors especially from china radial tyres. But it is still having
maximum market share.
Apollo is having maximum SKU’s for each segment.
The company having 360 degree (Dura tread, OTPL, exchange offer)
approach towards customers.
Best service is being provided by Apollo in comparison of other brands.
Major companies of tyres available in the market are:
o MRF
o J.K.
o BIRLA
o GOODYEAR
o MICHEN
o YOKOHAMA
o BRIDGESTONE
o OTHER*
*Other includes china tyres & retreaded tyres
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RECOMMENDATIONS
Recommendations can be divided into four P’s of the market mix and they are:
PRODUCT The company should launch TBR tyres for overload. The company should launch two- wheeler tyres.
PRICE Price of the product must be competitive; currently our product is at very
higher side (prices) in comparison with our competitors, and company should use some promotional measure to bridge this gap.
Low cost tyres in truck category should also be launched to beat China radials.
PROMOTION The company should introduce various customers appealing schemes time
to time. For advertisement and promotion company can follow competitors strategy
like painting on the same wall on which competitors has advertised his
65
brand, co. needs to enhance focus on wall paintings and glow sign boards to the dealer located at highways and crowded areas.
Company should also follow competitor’s strategy to promote tyres, like Birla is offering unconditional warranty up to 50% tread wear in mining tyres.
PLACE: A customer must get all the solution under one roof so selling is not the
only aspect rather proper fitment, alignment services should also be provided to the customer through the defined channel.
Online purchase facility should also be given to big and reputed fleets of the region.
LIMITATIONS
The research was limited to Delhi & NCR only.
Customer’s non-responsive behaviour, while conducting observation
was a major limitation.
Conversation problem while asking question to rural customers was a
major problem.
The sample was selected on random basis, therefore can be affected by
researcher’s bias.
66
Limitation of Time In a short span of 8 weeks for the study the results
accuracy may not be up to the mark.
Limitation of Sample Size Since a limited number of customers were
selected from cities and industrial areas, but not the whole, so the result
was likely to be affected.
CONCLUSION
In the light of the topic “Comparative study of Apollo Tyres with other brands in
the market”. it was found that there are many other well known tyre companies
available in the market, like:
Apollo
MRF
JK
Birla
67
Ceat
Bridgestone
Goodyear
Michelin
From the fitment survey of 100 customers it was found that the fitment of Apollo
tyres is maximum in term of LCV’s. The entire LCV customers were quite
familiar with all the brands of Apollo tyres in LCV range which shows strong
interest and loyalty towards the brand.
Customer strongly demands for Apollo tyres due to performance and after sales
services. As per the customer voice Apollo is the only company who focuses a lot
on customer activities like campaigns, AIDS awareness programs, painting
competition for LCV owner’s children.
There are customers who know that Apollo tyres are the performing tyres but still
taking other competitors brand and China radials due to low cost, because the
freight in the industry is still at lower side.
Apollo follows FIT TO APPLICATION concept, which shows that the company
is having different range of tyres as per different usage., like different product for
underload and different product for overload while this thing is not common with
other companies, most of the companies have the common brands to promote.
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Apollo is the only company, which is having large number of SKU’s in all
segments like Truck, LCV, PV, and Farm Tyres.
BIBLIOGRAPHY
BOOKS
Marketing management: by Philip Kotlar
Marketing mix
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Research methodology: by C.R.Kothari
Research methods
Research design
Data collection techniques
Questionnaire
MAGAZINES
Company news letters: for the month June-July08
Autocar : issue May-August08
Overdrive : issue August08
Business world : July-August08
WEB SITE
www.apollotyres.com
About us
Company profile
Product type
Other players
www.google.com
Other players in tyre industry
Market scenario.
ANNEXURE70
QUESTIONNAIRE
CUSTOMER
NAME:
PHONE:
TOWN:
ROUTE:
LOAD:
Q:1 How many vehicle do you have?
Ans. 1-2 2-4
4-10 10-20
Q:2 No. of tyres in your vehicle?
Ans. Apollo
MRF
Ceat
Birla
JK
other
Q:3 What is monthly avg. running? (in K.M.)
Ans. 10-20 20-30
30-40 40-50
Q:4 Avg monthly running of truck tyre? (in K.M.)
Ans. 30000 40000
50000 60000 & above
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Q:5 How frequently you purchasing tyres, of which company?
Ans. No. of tyres Months company
1 Apollo
2 MRF
3 Ceat
4 JK
6 Birla
6+ other
Q:6 How many tyre company's you are aware?
Ans. Apollo
MRF
JK
Ceat
Birla
other
Q:7 How many brands do you know of the company?
Ans Apollo
MRF
JK
Ceat
Birla
other
Q:8 Which tyre do you prefer to buy first?
Ans. Apollo
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MRF
JK
Ceat
Birla
other
Q:9 Brand loyalty if any, Reason?
Ans. Yes No
Co's Name…………….
Q:10 Why do you think Apollo tyre is best from others?
Ans. performance After sale service
Price
Co's scheme
Q:11 Your suggestion to the company?
Ans.
* other includes china & other local tyres
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