smm apollotyres group3

7/17/2019 SMM ApolloTyres Group3

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Strategic Marketing : Tyres Industry (Apollo Tyres)

Group-3(April-201)

!o"it #alia ( !oll $o% 31)

&ig'iay Sing" ( !oll $o% 1)



Indian Tyres Industry #"o all are t"e key players*

• Turno+er o, Indian Tyre Industry : !s% 3000 .rores

• Tyre /roduction (Tonnage) : 1 lak" M%T%

• $uer o, tyre copanies: 3

•Industry .oncentration : 10 4arge tyre copanies account ,or o+er5 o, total tyre production%



Indian Tyres Industry S#6T Analysis



.opetiti+e 4andscape



Indian Tyres Industry 7ias +s !adial Tyre

• Radialization Levels (As a % of total tyre production)

• Passenger Car tyres 98%

• Light Commercial ehicles !"%

• #eavy ehicles ( $ruc & 'us ) 8%



Soe 6ser+ations 8 9uestions*

• It is e+ident t"at argins are lo and arket is a purely aout

econoies o, scale%

• &espite t"e loest prices in arket "y Apollo tyres is not ale to

gain t"e leaders"ip position in /.! tyre segent*• &oes rand 8 positioning plays a role*



Apollo Tyres Situation Analysis ( .;s)

.opany

.onte<t

.opetition

.ollaorations

.ustoer

• Apollo tyres is t"e orld 1=t" iggest tyre anu,acturer and as estalis"ed in1=2

• 6+er 1>000 eployees and anu,acturing presence in Asia ?urope and A,rica

• A+ailale in o+er 100 .ountries it" anu,acturing ,acilities

• > @ey rands : Apollo @aien Maloya !egal and 'redestein

• Generally interested in ileage o,,ered price type o, tec"nology used productpresence in arket and ser+ice o,,ered

• &eciding Bactor is .ost +ersus ene,it and generally ased on ord o, out"purc"ase

• $etork o, o+er 000 dealers"ips in India

• 6perate t"roug" a netork o, randed e<clusi+e or uti-product outlets

• /artners ,or ra aterial : Aditya 7irla ?<<on Moil Styron /er,orance ,iersCSA%

• R* : Market leader ,or 21 years Birst tyrecopany to reac" turno+er o, 0 illion strongassociation it" sports Good rand iage

• C+A$ , Most +isile ,ace o, Indian tyre industry itreac"ed 10 illion e<ports enc"ark in 2012

• -. $yres , Market leader in 7usD Truck segent

all radial plant coing up in ."ennai

• 6t"er .opetitors include 7ridgestone .ontinentaland Goodyear

•Increasing sales o, /assenger and .oercial +e"icles in de+eloping countries due to ainly socioeconoic ,actor

•Go+t policies like 4ocal 7ody Ta< ( 47T) and ot"er,actors like decrease in rain,all "ad reduced deandin agricultural sector

•Tec"nological ad+anceent like sel, in,lation GreenTyres !un ,lat tyres is in,luencing t"e arket



/egment name Passenger Car01ners

Commercial ehicle01ners

0ff #igh1ay ehicle2 $ractor01ners

3ndustrial and#eavy ehicle

$1o 4heelers

Geograp"ic."aracteristics

Cran .ities 7eteen .ities :Mig"t need totra+el t"roug"rural stretc"es

/redoinantly in!ural India

At Industrial sitesBor eg% .onstructionsites Mine e<ca+ation

7ot" ruraluran and sei-uran

&eograp"icBactors (Age)

2 >0 2 - >0 2 >0 2 >0 Ao+e 20

&eograp"icBactor ( Incoe)

Ao+e 3 4ak"s Ao+e 10 4ak"s Ao+e 3 4ak"s $A ( Industry6ned)

Ao+e 0T"ousand

/rincipal 7ene,itSoug"t

!eliaility&uraility BuelMileage /rice

Sa,ety!eliaility&uraility 'alue,or oney

4ong li,e 9uality?asyaneu+eraility

7etter Grip 4ong li,e9uality

4o .ostSuperior grip!eliaility

6ccasion Grudge asedpurc"ase

/riarily tie ased ser+icingD!eplaceent

Grudge ased/urc"ase

."anged onreEuireent

Grudge asedpurc"aseF Tie ased ser+icing

7rands Ba+ored M!B7ridgestone Apollo.ontinental.?AT Mic"elin

M!B Apollo.ontinental

Apollo Tyres Mic"elin 7ridgestone M!B7ridgestone.?AT

Apollo Tyres Segentation 8 Target Markets

.urrentBocus

InitialBocus $o Bocus



Apollo Tyres - Analysis



T"e 7ig #ar Apollo Tyres +s M!B

• M!B ep"asies on /ull strategy

• Apollo ep"asies on /us" strategy

• M!B is ,ocusing on capturing local arket

ore e,,ecti+ely

• Apollo "as started looking ,or ne arkers

in ?urope



Marketing .apaigns

• $e gloal rand uilding

capaign ,ocused toards

gloal tyre rand and sa,ety



Marketing Strategy Apollo Tyres

• IndiaHs s"are o, turno+er t"roug" e<ports "as een around

>5%#e are no orking toards increasing t"e ,ocus o, o+erseas

arkets suc" t"at t"e total s"are ill go up to >05 .?6 Apollo

Tyres



!ecoendations

• Apollo s"ould ,ocus on e<port usiness Ipro+e t"eir rand

aareness to ecoe a Gloal rand %

• S"ould spend in !8& to ake alternate aterial in place o, natural

ruer to signi,icantly reduce aterial cost

• S"ould ,ocus on ne tec"nologies specially ,or passenger cars like

sel, in,lation Green Tyres !un ,lat tyres

• Apollo tyres s"ould de+ise a strategy to enter t"e to "eeler

arket as t"ere is a "uge arket sie "ic" it "as not een ale to

tap currently%



T"ank Jou

smm apollotyres group3

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