MRF Tyres

CONSUMER ATTITUDE TOWARDS MRF TYRES - WITH

SPECIAL REFERENCE TO PADMANABHA WATCH WORKS
KOPPA,

CONTENTS
1.

INTRODUCTION

2.

STATEMENT OF THE PROBLEM

3.

COMPANY PROFILE MRF COMPANY

4.

THEORETICAL PROSPECTIVE

5.

METHODOLOGY

6.

DATA ANALYSIS & INTERPRETATION

7.

FINDINGS & LIMITATION

8.

SUGGESTIONS AND CONCLUSION

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APENDIX:

BIBILOGRAPGY

QUESTIONNAIRE

MRF Tyres

Chapter - 1
INTRODUCTION

General Introduction
Introduction To Company and product

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INTRODUCTION
The main object of every organization is to earn more profit, to
achieve this object the organization should increase its sales by getting more
customer and the only way to get more customer is that the organization
should provide expected satisfaction to the customers.
Here the word customer satisfaction means the utility which customer
expect from the product and when a customer get expected utilities it is
called as customer satisfaction.
MRF manufactures the largest range of tyres in India and enjoys the highest
brand preference for superior quality, company manufactures the largest
range of tyres in India and is the market leader with the largest market share
it tyre industry.
Since 1984 MRF tyres has consistently been chosen as oem fitment by
almost every major car manufacturer in India apart from tyres MRF also
manufacturer conveyor belts, pretreads and advanced polyurethane paints.
Here every customer of MRF is getting satisfaction and it may analyzed by
the following information
MRF own No. 1 award for customer satisfaction by J.D Power Asia

pacific for 2001&2002

MRF Tyres

It is also created good brand name in other countries also, and it is the

first Indian company to export tyres to the US, the very birthplace of
tyre technology. It is the first company in India to manufacture and
market Nylon tyres passenger tyres commercially.
MRF is providing huge number of products to the customer as per the

requirement and need.

They provide more warranties to the customers and it will shows that

the company has confident on its product.

So as per the above information it found that the customer satisfaction
towards MRF tyres is good

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Consumer is a person who is a normal people and they are purchase or buy
the products present day the market becomes consumer oriented present
market the consumer are Kings.
Their behavior at the time of purchasing mainly influenced in the
development, profit etc of the company and its product also present days
manufactures are have to survey the consumer's opinion before starting new
business and after also they have to ask about their opinion about product
after it enter to market if the consumer said to make any changes the
company should have to change it as per consumer wants.
Behavior at the time of buying any product it affects the company
directly. And if the producer wants to make any changes i.e. in quality, price
and etc are first they have to make survey about these changes which
company wants to change.
The consumer taking very rational decision at the time of buying any
thing and they compare every thing viz. Price, quality, quantity If any
changes in made first the consumer make companion to purchase any kind
of goods and consumers are not stand in any one particular product or
company they are flexi- mind and are jump or any other company.

MRF Tyres

When it as also apply in the matter of types also. At present there are
may companies to fulfill their i.e. consumer need in tyer and the companies
wants to compete with their near companies and wants to fulfill the
consumer need they are compete in price, quantity quality etc.
There are many standard companies like MRF, JK Birla, Goodyear,
Vikranth, and CEAT etc. They are having may types in many models size etc.
In many times the consumers are compare the following important
things (influencing factors)
1) The price and quality of different companies product
2) The good name and fame of company
3) Advertisement media to attraction.
4) Any Scheme like discounting, gifts, service etc.
5) Financial and some Non financial facilities like installment scheme,
discount gifts etc.

Government First Grade College Koppa

There are some important influencing factors at the time of

purchasing the tyres. according to the MRF company's representative they
attract the customers by financial aids, gift and discount to regular
customers. Some time incase of this tyre the name of company itself is
enough to purchase the product that is tyres.
So to conclude we can say that consumers is king of the market to any
products and their behavior is influence directly or indirectly to any product
particularly also in tyres
General introduction

Now, India is a wide market for all kinds of products. After LPG
(liberalization, Privatization and Globalization) at i.e. the world anywhere
they can start their business activities. Their are very less restrictions, rules
and laws for establishing any business units (compare to twenty to 15 years
back) India had adopted LPG IN 1991-92. AFTER THAT INDIAN business
are started and developed and also developing very fast and also standard
of people and income, expenses, savings like that all one changed and how
also changing day to day.

MRF Tyres

The Indian tyre market also changing by day-to-day and it also some
high competition than other product. Because without transportation no
work is possible and for this vehicles requires and for moving wheels is must
and for its smoothness the tyres are very important.
So, this industry facing a strict competitions in market to provide,
low-priced, high, quality and performance without this transportation in
impossible.

Now, a day the vehicles are selling in very fast rate. So there are many
tyre companies are started to full-fill the demand at a time to vehicle owners
or customers.
Introduction to Company and its product:From the above general introduction we can say that types are
become a part of daily life of people. So for fulfill the demand their are
many companies are established for e.g. MRF, JK, Goodyear, Birla, Mode, .

Government First Grade College Koppa

In the above the "MRF tyre Company" is also one of them. This
industry is acting very wide through out the world. This is properly known
as "youngest Industry" in type market.

Chapter - 2

Statement of the Problems

Objective of the Study

Scope of Study
Methodology
Hypothesis
Limitation of the Studies

MRF Tyres

Statement of the problems: 1) We know this is very youngest industry the main problem in strict and
heavy competition in Market with "Some Big products like MRF, J.K
and CEAT etc.

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2) This is not much importance to advertisement because as said by the

sales representative the company do not believe in advertisement, so it is
not now to all common people.
3) But as is asked to some bus and lorry owners, they said that the quality of
the MRF tyres in good and their in complaints are also less (like stoner, in
tyers, and base quality)
So, finally conclude that their one no much problems in the market by
this product.

Objective of the study: 1) To know, about MRF company and the history of the product i.e. tyer.
2) To know about factors which influence the buyers to purchase the MRF
tyres and their behavior and opinion about product.
3) To know the about management structure and firm's management
structure.
5) The way of appointing agents to sell the products (e.g.: any deposit of
securities or money etc).

MRF Tyres

To know the customer satisfaction towards MRF tyres in Koppa city.

To know the attributes which creates customer satisfaction among

MRF tyre users in Koppa .

To know the satisfaction level of the customer with the MRF tyres.
To know valuable suggestion form the customer.

Scope of study
The study is purely based on the survey conducted in Koppa city and
has focused on customers. The study covers the information about the mind
set which may varies from situation & where the respondents may not be
able to give required and accurate information.

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Methodology:
Information on tyres, demands in market are collected from direct
company and present through face-to-face interview.
Quaternaries are also issued to dealers and customers.
In Koppa where there are more than 300 bus owners, 1000 lorry and
truck owners and more than 400 buses are running around or outside.
Koppa.
The primary data are collected from direct contract with dealers and
tyre buyers.
The secondary data are collected from companys information in
business newspapers and in Internet the opinion are collected from more
than 50 respondents.
Percentage, tabulation, class tables etc are collected from consumer
opinion Survey and in addition to his graph of bars and pie charts are also
drown.

MRF Tyres

Limitation of the study:1) The main limit is that face to face selling is not their product. So the
consumers opinion about quality of product, company next knows price
etc in easy way.
2) The other limit is that the company has to expanse some extra money to
know about customers opinion and market survey with other products.
3) Response from consumers are not variable as their on opinion may
change due to changing times, tastes and enviourment etc.
There are only some woman and important limitation of the study.
Besides this all other information are good and favor to company and also
good opinion from user about this product is their and also this company in
playing a good competition/ competitors to company like JK, MRF Good
year etc.

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 Due

to respondents busy schedules, the interests shown by

respondents to answer the questionnaire may be less. This may have

resulted in collecting inaccurate information.
Due to time and cost constraint the sample size selected is 100.
The selected sample size is small as compared to the total number of

customers. Hence the obtained result may not be accurate as it may

not represent the whole population.

The project is open for further improvement of the work.

MRF Tyres

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Chapter 3
MRF COMPANY PROFILE

Evolution and Expansion

Collaborations
Company Profile
Performance, important awards in National and International level
Its Aims and strategies

MRF Tyres

MRF COMPANY PROFILE

INTRODUCTION OF MRF COMPANY
1946 - A year to remember India was on the threshold of independence. A
young

entrepreneur,

K.M.

Mammen

Mappillai,

opened

small

manufacturing unit where balloons, latex cast squeaking toys and industrial
gloves were manufactured little did he realize then that the company he
started would grow to become the no.1 tyre manufacturer in India.
MRF established its first office in 1949 at Chennai, Tamil Nadu, and
India. The company began as a manufacturer of toy balloons and other
rubber products and then later on moved to manufacture tyres in 1961.

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History of the Product

Invention of Rubber Tyers
In the year between 1800-1860. A person called "Charles Good year"
was a U.S inventor who made possible the commercial use of rubber when
he was 34, he began experimenting with rubber to make it stay in all kind of
weathers. He tried to improve it by mixing it with other materials.

Then after wards " National Mayword" has discovered the rubber
mixed with surplus was no longer sticky. Good year tried many ways and
mixtures of had, crude and surplus. He called this procedure as
"Unkovenization" he had finally discovered how to make rubber that would
be hard strong and elastic. His process in 1844 is still used in making
rubber. However, after these inventions good year received may honors.
Tyre History: -

MRF Tyres

Robert W. Thomson, Scottish engineer invented one pneumatic type in

1845, .At this time most of the tyers were in wood and steel. The steel tyers
preserved the wood and wore wheel .He gives tyres but it was not stronger
and in 1870 the first solid rubber tyre by England and were used to bicycles
and try cycles.

John D. Dunlop a Scottish veternion improved on Thomson's

invention in 1888. He developed air filled rubber for his son's bicycles their
pneumatic tyres provided smoother ride and make peddling easier then solid
tyers.

Bike companies in Europe and USA soon began to use them.

There tyer are used in automobiles in 1895 like bicycle tyre are single
an filled rubber but it is heavier and were driven footer. These tyres not hold
enough as pressure for more time.

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In 1900 s two parts of tyers were developed. They consisted of a

casing and an inner tube a faxible rubber tube that fit inside the casing and
hold the air.
The tubes less tyers were introduced in 1948. Its casing was made as
tight by an inner liner. These tyers seals itself to the rim of a wheal by a
band of soft rubber on the inner surface of the tyer. Since, 1954 most of new
cars have been equipped with tyer types.

Type:
It is a covering for the outer rim of the wheel. Most types are made of
rubber and are pneumatic (filled with air). They are used on aeroplanes.
Automobiles, buses, cars and other vehicles. The main feature of rubber tyre
is their ability to absorb the shock and train created by humps in the roads.
The air in a rubber tyre supports the weight of vehicles.
One of the important features of rubber tyers in their activity to grip
the road. The face of a tyre is called tread, has may deep groves. These have
smaller groves called spies make up the tread pattern the type body consists
of a rubber side walls and casing. The casing is made up of two or more
layers of rubberized cord fabric each layer is called a play.

MRF Tyres

Tyre Manufacturing Operations:

There has been various raw materials are used to manufacturing a
tyre. They are Natural/ synthetic rubber, rubber chemicals, Nylon cord and
carbon Black. Before manufacture a type several operations must be
performed. They include mixing the rubber with sulpher and other
chemicals, coating cord fabric with rubber and cutting the rubberized fabric
into strips all these done by machinery.
Parts of a tyre:All Pneumatic tyres consists of 4 basic parts
a) Casing or carcass: It provides a strong flexible chamber to contain the air of tubeless
tyers or the inner tube. It consists of thin layers of rubber-coated cord
material, usually of nylon or steel wire, each layer in called ply.

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Bias play tyers are made with diagonal plies called breaker plies
and placed b/w the casing and the read to provide extra impact resistance.
Radial ply tyers have two or more additional plies of steel wire that
form a rigid belt around the circumference. Just below tread. It reduces the
heat and increase durability.
B) Beads:
It consists of strands of rubber coated steel wire covered with
rubberized fabric when the tyer is inflated the beads preen against one rim's
flange. It maintains the type shape and holds the tyre severally on the rim of
the wheel.
c) Tread: It is a thick layer of layer rubber that maker contract with the road or
ground that protects the casing from were and abrasion, it is molded into
various patterns of groves to help the tyre grip the surface.
D) Side walls: It provides a stronger outer covering for the sides of the tyer.
Tyer of the types:-

MRF Tyres

A) Redial or radial ply

B) Bias
C) Bias belted tyer.

A) Radial Tyer: Radial tyer are built with the cord fabric running straight across the
tyre from one rim to another. All radial tyer are belted these given longer
wear because they have has flexi and squirm than bias ply tyres .So there
fore provide better control and also allow for improvement in full efficiency.

B Bias tyers:
Bias tyers are built with the cord fabric running diagonally i.e. on the
bias form one rim to other as a vehicle moves the plys of its tyers rub
against each other and against the tread in an action called flexible and
squirming extreme heat can separate the tread of split the plies.

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C) Bias belted tyers: Bias belted tyers are made in the same way, as bias tyers, bit belts are
placed b/w the plies and the tread. The belts helps prevent punctures and
fight tread squirm
Low profile tyers: - They are used in high preference cars in 1970. They are
equal to radial tyers they look pudgier than regular super. They are wider
and are high. They have more grips on road the added traction can give a
driven more contro0l of a car at high speed around carves than started tyers
giver.
Rethreading:Basically it means the replacement of the worm out flap. Tyers can be
retread only at least hence times. It is popular especially in the commercial
segments as the cost involved is just 20% of a new type, thus it is set to be
costing into replacement demand. Pressure of air inside each of tyer is
extremely important to safety and to type weak .As tyre rolls, its caring in
constantly flexible or blending. These cause the plies to rub against one
another. Production heat due to friction If the pressure is too low the tyre
flexes more than it should and heat built up rapidly. This tends to weaken,
risk of tyre failure .If at is too high it causes arracks in the tread grooves.

MRF Tyres

Inflation of tyres can affect steering and other handling parts and for
that reason auto manufactures specially the tyre preserves that are best for
their vehicles.
Tyers of different type 9i.e bias and radial) should not be used to the
same vehicle because handling and maneuverability may be seriously
affected.
Today MRF is into a league of its own with:

MRF manufactures the largest range of tyres in India and enjoys the
highest brand preference for superior quality, company manufactures the
largest range of tyres in India and is the market leader with the largest
market share it tyre industry.
Since 1984 MRF tyres has consistently been chosen as oem fitment by
almost every major car manufacturer in India apart from tyres MRF also
manufacturer conveyor belts, pretreads and advanced polyurethane paints
The milestones achieved while being such a progressive and vibrant
company, is also recognized by the corporate world through a number of
awards like.

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Voted as one of the Indian most admired marketing companies by A & M

leading advertising and marketing and marketing journal.
No. 1 award for customer satisfaction by J.D Power Asia pacific for
2010&2012
Most ethical company in India by business world, a leading business
magazine.

Industry Review
Indian Tyre Industry to Register a Growth of 9-10% in the Next 5 Years
The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh
tones) garnering Rs. 19000 crores in FY07. MRF Ltd. was the market leader
(22% market share) followed closely by Apollo Tyres Ltd. (21%). The other
major players were JK Tyre & Industries (18%) and Ceat Ltd.(13%). The
Indian tyre industry is characterized by its raw material intensity (raw
material costs account for approximately 70% of operating income), capital

MRF Tyres

intensity, and cyclicality, fierce competition among the top players, low
bargaining power and resulting low margins. The top players are now
focusing on branding their products and strengthening their distribution
network so as to increase their market share.
The industry derives its demand from the automobile Industry. While
OEM market off take is dependent on the new vehicle sales, replacement
market demand depends on the total population of vehicles on road, road
conditions, vehicle scrapping rules, overloading norms for trucks, average
life of tyres and prevalence of tyre retreading.
The main category of tyres produced in the country is that of Truck &
Bus tyres. These tyres accounted for 57% of the total tyre tonnage
production in FY07 followed by LCV tyres which accounted for 9% of the
total tyre tonnage production. Approximately 53% of the total tyre tonnage
off take was by the replacement market, 31% by OEM and 15% by the
export market in FY07. The industry tonnage production registered a 5 year
CAGR of 9.69% between FY 02-07. The largest category of Truck & Bus
tyres recorded a 5 year CAGR of 7.85% (slower than the industry) while
Light Commercial Vehicle (LCV), motorcycle and car tyre categories grew
at 15%, 16% and 14% respectively (faster than the industry). Off the road
(OTR) tyre category (customized tyres) which fetch a higher margin
compared to other tyre categories, is the fastest growing category.
The OTR tyre category has registered a 5 year CAGR of over 20% in
the last five years. Most of the top players are increasing their capacity for
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the production of OTR tyres so as to improve their product mix, this being a
high margin product.
The exports from the country clocked a CAGR of 13% in unit terms
and 18% in value terms in the period FY 02-07. Most of these tyres that are
exported are of cross ply design. With radicalization catching up in some of
these markets, the Indian manufacturers will need to graduate to production
and export of radial tyres so as to protect their share in the export market.
Radicalization of tyres is still minimal in India.
Only the car tyre market has moved to radial tyres (95%) but in all
other categories, cross ply tyres are still preferred. Poor road conditions,
overloading in trucks, higher cost of radial tyres and poor awareness of the
tyre users are the main reasons for the non transition of the domestic market
to radial tyres. However, going ahead radicalization in truck & bus tyres may
increase due to governments focus on infrastructure development.

MRF Tyres

CARE Research projects the Indian Tyre Industry to register a growth of 910% in the next five years

The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tones)
garnering Rs. 19,000 crores in FY 07. MRF Ltd. was the market leader (22%
market share) followed closely by Apollo Tyres Ltd. (21%). The other major
players were JK Tyre & Industries Ltd (18%) and Ceat Ltd. (13%). The
industry tonnage production registered a 5 year CAGR of 9.69% between
FY 02-07.
Truck & Bus tyre category (accounting for 57% of the tonnage production)
recorded a 5 year CAGR of 7.85% (a rate slower than that of the industry)
while Light Commercial Vehicle (LCV), Motorcycle and Car tyre categories
grew at 15%, 16% and 14% respectively (at rates faster than that of the
industry). Off the road (OTR) tyres (customized tyres which fetch a higher
margin compared to other tyres) category is growing at a fast pace. The OTR
tyre category registered a 5 year CAGR of over 20% in the last five years.
Most of the top players are increasing their capacity for the production of
OTR tyres so as to improve their product mix, for e.g. CEAT Ltd. is
increasing its OTR capacity at its Nasik plant from 60,000 to 1,00,000 tyres
by end 2008, JK Tyre & Industries is expanding its OTR capacity from
25,000 tyres to 42,000 tyres by end 2008, even smaller player like Falcon
tyres is making its foray into the OTR category.
The exports from the country clocked a CAGR of 13% in unit terms and
18% in value terms in the period FY 0207. Most of these tyres that are
exported are of cross ply design. With radicalization catching up in some of
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these markets, the manufacturers will need to graduate to radial tyres so as to

protect their share in the export market. Radicalization of tyres is still
minimal in India. Only the car tyre market has moved to radial tyres (95%)
but in all other categories cross ply tyres are still preferred. Poor road
conditions, overloading in trucks, higher initial cost of radial tyres and poor
awareness levels in tyre users are the main reasons for the non transition of
the domestic market to radial tyres. However, going ahead, radicalization in
truck & bus tyres may increase due to governments focus on infrastructure
development.
CARE Research expects the tyre industry to register a tonnage growth of
910% in the next five years (FY 0712). The truck & bus and LCV tyre
category are expected to register a CAGR of 8% and 14% respectively (FY
0712).

Company profile
MRF LTD.
"Tyres with Muscle"

MRF Ltd. is the first Indian company to export tyres to the US, the
very birthplace of tyre technology. It is the first company in India to
manufacture and market Nylon tyres passenger tyres commercially. In 2004,
the company's turnover crossed INR 30 billion mark. The company was
given the title of most ethical company by 'Business World' magazine after a
survey conducted in 1999.
Quick Facts

MRF Tyres

Founder
Country
Year of Establishment
Industry
Listings & its codes
Registered Office

K. M. Mammen Mappillai
India
1946 as a toy factory
Tyre Manufacturing
NSE: MRF; BSE: 500290
124,
Greams
Chennai

Road
600

006

India
Tel.:
Website
Related Website

+(91)-(44)-28292777

Fax: +(91)-(44)-28291844/ 0562

http://www.mrftyres.com/
http://www.mrf-exports.com/ (MRF Exports)

Segment and Brands

Truck / Bus Tyres
Light Commercial, Jeep & Utility Vehicle Tyres
Passenger Cars Tyres
Off the road tyres
Two-Wheelers Tyres

MRF Ltd:
A LEADING PLAYER IN THE TYRE MANUFACTURING INDUSTRY

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 MRF Limited is engaged in the manufacturing, distribution And sale

of an extensive range of superior quality tyres for Various kinds of

vehicles.
The companys operations relate to manufacture of rubber products, such as
tyres, tubes, flaps, tread rubber And conveyor belt, as well as specialty
coatings for a variety of applications. MRF has six production facilities in
India and around 80 sales offices. From its humble origins in 1946, the
company has come long way to become the market leader in the tyre
manufacturing industry. MRF exports its products to over 75 countries
Worldwide. Today, global tyre manufacturers have to plan and adapt to
changes in customer Demand, fluctuations in raw material prices and
availability, while keeping pace with timelines for shipments; in the face of
increasing competition in the global marketplace.
MRF ranked 12th by Crain Communication
MRF, Indias largest tyre-maker, has moved up the pecking order.
According to the latest report of Tire Business, published by Crain
Communications of the US, MRFs rank has improved to 12th during
2000 from 13th during 1999.
The special report titled, "2001 Global Tyre Company Ranking", covered
72 tyre companies across the world. Commenting on the improved
ranking of MRF, executive director (marketing), Philip Eapen told ET, "It
clearly shows the intrinsic strength of MRF, brand equity and its ability to
protect bottom-line.
He said that MRF is retaining its position as number one tyre company in

MRF Tyres

India for the last several years. Its improved global ranking comes at a
time when the automotive industry is facing a tough market with
tremendous pressure on margins.
At the global level, Bridgestone Corporation was ranked number one by
Tire Business, closely followed by Michelin. Among other major Indian
players, J K Industries was ranked 17th against 16th in 1999 while Apollo
Tyres moved up the ladder from 21 to 18 in 2000. Ceat was positioned at
20 last year against 19 in 1999.
Eapen said MRF has emerged as the sole supplier of truck tyres to Volvo.
While it is the largest supplier of radial car tyres (40 per cent share) to
Telcos Indica with a monthly supply of 10,000 tyres.
MRF was originally started as a small manufacturing unit of balloons, latex
cast squeaking toys and industrial gloves. It was only in the year 1961 that
the company started manufacturing tyres. Today, MRF has 6 manufacturing
plants in India located in Tiruvottiyur and Arakonam in Tamil Nadu,
Kottayam in Kerala, Ponda in Goa, Medak in Andhra Pradesh, and one in
the Union Territory of Pondicherry. It has a distribution network of more
than 2,500 outlets in the country and exports tyres in over 75 countries
globally. The company established its first office in 1949 at Chennai, Tamil
Nadu. It has overseas offices in United Arab Emirates, Bangladesh and
Vietnam.
MRF manufactures the largest range of tyres in India and it has the highest

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brand preference. It makes tyres for heavy duty truck, bus, light truck,
passenger car to motor sports, rally cars, off the road earth movers, two and
three wheelers, farm service and military service. It is the market leader and
has 26 per cent share in the Rs 19,00000 million Indian tyre industry.
Funskool India is a joint venture between MRF and Hasbro Inc., USA, the
world`s largest toy company. Funskool`s Goa plant has been making its own
moulds for a number of its products, the most popular of which are
Pipsqueaks, a range of low priced baby toys. MRF collaborated with
PIRELLI to manufacture Conveyor Belting. The MRF Conveyor Belt plant
in Arkonam, Tamil Nadu, with an annual capacity of 3000 tonnes, is the
most modern belting plant in India. The company also has a paints and
coating subsidiary. It manufactures speciality coatings for wide range of
applications like Metalcoat, Woodcoat Glasscoat etc. MRF made a foray in
retreading as far back as 1970. MRF Pretreads is the most advanced
Precured Retreading system in India. MRF made a foray in retreading as far
back as 1970. In the MRF Pretreads system, the tread rubber is precured
from MRF`s factory. It also has the specialised expertise required for
retreading Radial Tyres. The company is an original equipment supplier
(OES) of radial tyres to Tata Indica, Hyundai Elantra, Ford Fiesta and many
other cars. Volvo also sources most of its tyres from MRF for its Indian
operations.
Financials
The Company swung to loss for the quarter ended December 2008. During
the quarter, the company reported loss of Rs 383 million compared with a

MRF Tyres

profit of Rs 517.50 million in the same quarter last year. Net sales for the
quarter rose 17% to Rs 13,519.70 million, while total income for the quarter
rose 16.81% to Rs 13,560.30 million, when compared with the prior year
period. It reported loss of Rs 90.32 a share during the quarter compared with
earnings of Rs 122.03 a share in previous year period.

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MRF Tyres

FIRM PROFILE
FIRM PROFILE

The MRF tyers Koppa's company representative in "Sri Jayalakshmi

Enterprises". The details about it are as follows:
Name:
Proprietor /owner

Sri Jayalkshmi Enterprises

Mr. K Ravindran
Ms. K. Jyothi Lakshmi

Capital

26 Lakh (From both)

Activity

MRF Cement C and F and (1990)

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MRF Tyers C and F (2002)

Other

Transport Contractors
1) Sri Krishna Transport
2) Ravindra Transport both to Koppa b'lore,
Chennai
3) Home built (Cement)
1) Sneha Enterprises
4) Sri Lakshmi transport
[Mahindra tractors)

Started in

1990

Bank

The south Indian Bank.

Management Structures.
Proprietor

Super visor
(Raghvendra Murthy)

(K Ravindran)

Company MKT Rep

(Naveen)

MRF Tyres

Mak. To city

M. to city

M. to city

Computers (in charging BSAP)

[MRF sales A/cing package).
Go down incharge

Office boy

Appointment: - They are direct MRF company representations and they are
opining the local dealers as per company rules as norms.

Government First Grade College Koppa

41

The local dealer appointed by them are

1) MRT wheel zone: B.H Road Koppa.
2) MRT Co: Garden Area.
3) Sapthagiri agencies: B.H Road
4) Shiva tyers and Unity Tyers: O. T. Road
5) Other districts
Hassan, Chitradurga, Davanagere,
Bhadravthi, sagar, Koppa, Sringeri, Trikere, Chikkamangalur, Kadur.

MRF Tyres

Chapter 5

THEORETICAL PROSPECTIVE

Government First Grade College Koppa

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MARKETING MIX
Product
Price
Promotion
Physical distribution
Major threats in Indian tyre industry

MRF Tyres

THEORETICAL PROSPECTIVE
MARKETING MIX

All marketing process of a firm is direct towards consumer

satisfaction. The sound blending of the four controllable factors viz.
1. Product
2. Price.
3. Promotion.
4. Physical distribution.

Purpose of this chapter

1. To know product range.
2. To know suitability of the products to different users.
3. To study pricing method.

1. Product strategy

The MRF tyre consists of the following product lines.

Government First Grade College Koppa

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1. SAMSON (ADD WARRANTY]

2. BT ULTRA (PREMIUM)
3. TARZAN (XTRA MILLAGE)
4. BT112 & BT 112 PLATINUM (multi retread& extra mileage)
5. ZETA+ (HIGH MILLAGE)
6. BT 112 + AND BT MAX (MULTI AXLE & MILLAGE)
7. BT 121 (MULTI RETREAD)
8. ZING (MULTI AXLE)
9. MXL (MULTI RETREAD)

There above are suitable for LCV's and HCV's other than these they are also
for tractors, JCB's cans etc.

PRICE STRATARGY

The price of a product is a critical factor in the whole process of

bringing together the buyer and supplies the pricing policy is based on
several factors such as managerial philosophy, competitive condition and
firm marketing and other objectives.

MRF Tyres

From the direct interview with company representative of Koppa city

it come to know that pricing here based on adding a fixed percentage of
manufacturing gross profit to unit cost+sales tax.

The price of MRF tyres is depends upon type of vehicle and typre of
tyre's models and their suitability.

PROMOTION STRATAGY

In this company they do not believe in media advertisement. They

believe only in their name in market.
As far as sales promotion these in no free service to door and only .
15% and .25% in discount. There is 2.5% commission and no any other
subsidiaries or aid to exclusive dealers.
PHYSICAL DISTRIBUTION

The company has set up their depose in various parts of the country.
The company has only exclusive company representative and from them it

Government First Grade College Koppa

47

moves to local dealers. Prompt and quick delivery is the main motto of the
company in its distribution aspect.
The distribution channels of MRF tyres are as follows
MRF company- depose---dealers---customers
Company also has their sales representative and executives visit
regularly to the dealers and fixed out the problems in factors like selling
distribution etc.

Strategies adopted by MRF tyres

Compression of MRF tyres quality against their closest competitors.

Product features
Mileage
For Retread

MRF tyers
Very good
3to4timesgood
Few

Stone hits
Air complaint

No

J.K
Good

CEAT
Poor

Goodyear
Good

3 times

2 times

3 times

More

More

Few

Yes

Yes

Less.

By above table, we can easily compare that the brand has got very go
features and good is all aspects. Compared to there nearest competitors.
2. Compression of pricing of MRF tyres with respect to near competitors.

Product

Size

Brand

MRF Tyres

Ton wise
Lug

9/10
10/20

MRF
tyers
17000
19100

Semi lug

9/10
10/20

16000
19000

16000
19000

15900
19100

15700
19000

9/10
10/20

15500
18000

15000
15000

15500
18000

15100
18000

RIB

J.K

CEAT

Good year

17000
19000

16000
19200

15100
19500

By the price of tyres of each brand the cost of MRF is some more. But
the quality of product is good as for latest survey the MRF tyres are grown
up in faster way in very short time period by adopting good quality service
price technology etc.
A boom in the automobile industry would lead one to assume that all
the related segments too are booming. But it does not seem to be so at least
in respect of the tyre sector which his trading along at a slow pace the tyres
that come with a new passenger bus have a life of 2-3 years.
A brief look at the past would help to under land the present back to
1936 the tyre industry has to come a long way in six decades.

Government First Grade College Koppa

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RAW MATERIALS

Tyre Manufacturers ate RM intensive as the latter a/c for 50% of

selling price of a tyre and about 70% of the cost of production. The major
RM is nylon cord, natural rubber, synthetic rubber, rubber chemical and
carbon black. These are together a/c for 94% of the cost of the RM

Synthetic rubber

In case of this, the entire requirement of butyl rubber is imported

during 2003-04 butyl rubber consumption by the industry was placed at
30.872 tones.
Tubes
While not exactly an impact, tube is an important constant of the tyre.
The rates of tube to tyre are placed at 1:1, as the use of tubeless tyres is still
to catch on in India. But an anomaly that has been noticed is that tube
production has been declining compared to tyre production.

MAJOR THREATS TO INDIA TYRE INDUSTRY

1 Increase in Raw material cost

As we know that the major raw materials used in the manufacture of

tyre are natural synthetic rubber carbon black, rubber chemical and nylon

MRF Tyres

rayon polyester steel cords. The most recent and gravest provocation has
been the rise of prices in natural rubber, the main RM component.
2 Sluggish demands

The tyre industry faces an ironical situation where the introduction of

a better product has affect demand. The redial tyre cost 15% to 20 % higher.
The same is affect by the several advantages like 6% to 7% saving in fuel
increased puncture resistance etc.
3. Rethreading.

Emergence of rethreading has only added fuel to the fine rethreading

basically means the replacement of worn out flap tyre can be retread at least
three time. The coast involved at 30% of new tyres.

Chapter-6
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Methodology

MRF Tyres

Methodology

In this report primary data is collected in the form of consumer

questionnaire. Nearly 50 consumers have answered the questionnaire and
have helped greatly to draw conclusions
A half of dozen of dealers selling particularly MRF Tyres were
interviewed personally and their opinion about the product and its demand
and marketability was collected.
For the purpose collection of primary data respondents from all the
area of Koppa City have been taken in to consideration. The community of
Koppa City is divided into different sections like Employee, Students,
Housewifes, etc, for the purpose of distributing questionnaire. Secondary
data is the second hand data collected from any published sources.
Secondary data have been collected from any books and also from some of
the records of the firm.
Questionnaires Fed to Consumers:In order to ascertain the opinion of various groups of consumers over
the MRF, Questionnaires were fed to them to get the following related
aspects.
Government First Grade College Koppa

53

i)

Factors affecting the consumers while buying the MRF.

ii)

Opinion of consumers towards MRF regarding the quality

and price of the Tyres.

iii)

Effect of Advertisement.

Secondary Data
1. News papers
2. Magazine
3. Internet
4. Questionnaire
5. Encyclopaedia
6. Both primary and secondary datas have been collected to bring out

this project report.

Primary data have been collected through questionnaire method. The

selected of respondents is made on the basis of stratified random method of
sampling, questionnaire has been issued to respondents to avoid necessary
delay had to the filling task easy. The questionnaire is prepared in structural
manner.
The Research is conducted among different class and age group of people
residing in Koppa city. To secure more items of information from a sample of
responds of informants representative of a large group, questionnaire method is
adopted. Information gained from respondents is analyzed and classified. The
main aim of this survey is to study the peoples attitude towards MRF Tyres.

MRF Tyres

Type of data: Two types of data have been used for the study.
Primary Data: Survey method is employed in the project. This involves
asking the respondent about the mobile connection currently used. No
telephonic interviews or mail questionnaires were employed.
Sampling
Sample size

: 50 respondents.

Sample techniques

: Stratified random sampling and judgment

sampling.
Sampling procedure

: 50 customers spread across different areas

of
Sampling tool

Koppa.
:

Disproportionate

stratified

random

sampling.
Geographical area

: Koppa,

Data source

: Primary data.

Research approach

: Survey.

Research instrument

: Structured questionnaire.

Method of contact

: Personal.

Data collection Tool

Government First Grade College Koppa

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The self administered questionnaire was used as a tool for collecting

data in the project. The questionnaire contained 10 questions about MRF,
Tyres which were to be asked to the respondents.
Pilot Study
Questionnaire was first checked with few respondents to check
whether the questions were leading to objectives. Then questionnaire was
partially changed by adding, deleting, reforming few questions and again retested and data collection was continued after confirming the objectivity of
the result obtained from altered questionnaire.
Field Work
The field work mainly constitutes of visiting the respondents and
giving them the questionnaire to fill up. The field work result is based on the
questionnaire collected from the respondents.

Chapter-7
DATA ANALYSIS AND INTERPRETATION

MRF Tyres

DATA ANALYSIS AND INTERPRETATION

Data Analysis:
I have conducted marketing survey on 50 customer to analysis their
satisfaction level, for this purpose I have prepared a questionnaire to collect
the information from them. Among these 50 customers, only some of them
responded as per that now we will see the analysis of the collected data.

Government First Grade College Koppa

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1. The following tables shows the factors which motivated the

customer to purchase the MRF TYERS

FACTORS
Friends
Brand Image
Advertisement
Relatives
Self-decision
Total

CUSTOMERS
8
9
9
8
16
50

MRF Tyres

Interpretation:
The above table & graph shows that:
A. 16 customers have purchased MRF Tyres by there own decision.

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B. 8 customers have purchased MRF Tyres by there Friends

recommendation.
C. 9 customers have purchased MRF Tyres by its Brand Image.
D. 9 customers have purchased MRF Tyres on the basis of

Advertisement.
E. 8 customers have purchased MRF Tyres on there Relatives

recommendation.

2. The following tables shows the level of satisfaction of customer

need/purpose of purchasing MRF TYRES
Fully Satisfied
Satisfied
Dissatisfied
Fully dissatisfied
Total

23
17
7
3
50

MRF Tyres

Interpretation:
The above graph shows that:
45 % of people are fully satisfied with the purchase of MRF tyres.
35 % of people are just satisfied with the purchase of MRF tyres.
13% of people are dissatisfied with the purchase of MRF tyres.
7 % of people are fully satisfied with the purchase of MRF tyres.

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3. As compare to other tyres the MRF TYRES are rated as below.

A) Price of Tyres

Strongly Satisfied
Satisfied
Not Satisfied
Fully Not Satisfied
Total

15%
16%
10%
9%
50%

Percentage

MRF Tyres

Interpretation:
30 % of customers are strongly satisfied with the price of MRF tyres.
35 % of customers are satisfied with the price of MRF tyres.
21 % of customers are not satisfied with the price of MRF tyres.
14 % of customers are fully not satisfied with the price of MRF tyres.
B) Quality Of Tyres:

Strongly Satisfied
Satisfied
Not Satisfied
Fully Not Satisfied
Total

23%
15%
8%
4%
50%

Percentage

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Interpretation:
45 % of customers are strongly satisfied with quality of the tyres.
30 % of customers are satisfied with quality of the tyres
16 % of customers are not satisfied with quality of the tyres
9 % of customers are fully not satisfied with quality of the tyres.

C) Durability of Tyres

Strongly Satisfied
Satisfied
Not Satisfied
Fully Not Satisfied
Total

23%
16%
7%
4%
50%

MRF Tyres

Percentage

Interpretation:
45% of customers are strongly satisfied with durability of tyres
32%of customers are satisfied with durability or tyres
14%of customers are not satisfied with durability or tyres
9%of customers are fully not satisfied with durability of tyres.
D) Performance Of Tyres:

Strongly Satisfied
Satisfied
Not Satisfied
Fully Not Satisfied
Government First Grade College Koppa

21%
17%
7%
5%
65

Total

50%

Percentage

Interpretation:
42%of customers are strongly satisfied with performance of tyres
35% of customers are just satisfied with performance of tyres
14% of customers are not satisfied with performance of tyres
9% of customers are fully not satisfied with performance of tyres
E) Mileage Of Tyres:

MRF Tyres

Strongly Satisfied
Satisfied
Not Satisfied
Fully Not Satisfied
Total

24%
15%
7%
4%
50%

Percentage

Interpretation:
48% of customers are strongly satisfied with the performance of tyres
30% of customers are only just satisfied with the performance of tyres
13% of customers are not satisfied with the performance of tyres
9% of customers are fully not satisfied with the performance of tyres

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5) The following tables show the customer opinion about MRF TYRES.

Fully Satisfied
Satisfied
Not satisfied
Fully Not Satisfied
Total

14%
21%
8%
7%
50%

Percentage

Interpretation:

MRF Tyres

As per the above chart it shows the details:

28 % of customers are fully satisfied
42 % of customers are satisfied
17 % of customers are not satisfied
13 % of customers are fully not satisfied
6) The following tables shows the behavior of the showroom people while

taking quotations or purchasing the MRF TYRES.

Very Friendly
Friendly
Not friendly
Dont know
Total

17%
22%
4%
7%
50%

Percentage

Government First Grade College Koppa

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Interpretation:
34 % customer say that the behavior of showroom people while taking
quotation or purchasing
MRF tyres were very friendly.
44 % customer says that the behavior of showroom people were friendly
9 % customer says the behavior of showroom people not friendly
13 % customer says the behavior of showroom people dont know
7) The following table shows the customers opinion about service charges in
show room.
Very Reasonable
Reasonable
Costly
Very Costly
Total

15%
21%
8%
6%
50%

MRF Tyres

Percentage

Interpretation:
30 % of customers said that service charges are very reasonable.
42 % of customers said that service charges are reasonable.
16 % of customers said that service charges are costly
12 % of customers said that service charges are very costly

8) The following tables show why customer prefers MRF TYRES.

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Quality
Price
Service
Durability
Total

19%
12%
8%
11%
50%

Percentage

Interpretation:
38 % customers prefers the MRF tyres due to the good Quality
24 % customers prefers the MRF tyres due to the reasonable price
22 % customers prefers the MRF tyres due to its durability
16 % customers prefers the MRF tyres due to its service

MRF Tyres

9) The following tables shows the problems faced by customers while

purchasing MRF TYRES

Lack of Information
Non co-operation of show room

11%
4%

people
Delay
No problem
Total

8%
17%
50%

s
Interpretation:
22 % customer faced the problem due to lack of information

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07 % customer faced the problem due to non cooperation of show room

people
17 % customer faced the problem due to delay
54 % customer faced no problem

Chapter 7

FINDINGS

MRF Tyres

FINDINGS
31% of customers have purchased on there own decision. They have

decision on the basis of experience and some customers have taken

after making comparison with other tyres. Hence it reveals that
customers are satisfied with MRF TYRES
Majority of customers means 45% are satisfied with the fulfillment of

their need/purpose.
Only 30% of customers are fully satisfied with price of the tyres

about 21% are not satisfied and 14% of customers are fully not
satisfied with the price.

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 About 45% of customers are fully satisfied,30% o f customers are

only just satisfied and 16% are not satisfied with the quality.
About 45% of customers are satisfied with durability of tyres, and

14% are not satisfied with durability.

About 42% of customers are fully satisfied with the performance of

the tyres, and only 14% are dissatisfied.

The customers are having a very good opinion about the MRF

TYERES about 28% are strongly satisfied with its performance, and
only 17% are not satisfied with performance.
The customers are having very good opinion about the behavior of

showroom people about 44% of customers are saying they are friendly
and only 13% are dont know.
The service charges are very reasonable in the view of about 43% of

customers and about 11% of customers believe that the service

charges are costly.
Majority of customers are fully satisfied with the MRF TYRES

MRF Tyres

Chapter-8
Observation
Suggestion
Conclusion

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SUGGESTIONS

SUGGESTIONS TO SHOWROOM:

Showroom must recruit well qualified and skilled labours that care about

the customer. It will abolish the problem of unskilled and poor quality
service.
Showroom employees and workers should maintain friendly relation with

every customers.
Showroom should provide the remolding system to the existing

customers.
Showroom should maintain tyres, tube, air compression machines etc,.

which are needed to the customer at any time.

Always adopt the improvement of servicing system and keep the

showroom in good conditions.

SUGGESTIONS TO COMPANY:

MRF Tyres

The company should reduce the price of there products.

Improve the distribution network and make available the products in

needed time of customers.

Company always keeps some prizes and gifts to attract the customers.
The products should advertised in the Regional TV channels and in

leading newspaper must.

CONCLUSION
According to the study I conclude that the MRF TYRES company
satisfies the customer need and the purpose, but only problem is with the
service given to the customers by the showroom. So, as per study in my
opinion based on project I can say that MRF TYRES should think about the
service provided by showrooms in order to capture the maximum market
segment.

According to city the market is vast almost the whole district

customers and other new people purchase the MRF Tyres because it is old

Government First Grade College Koppa

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brand running tyres in market. Almost people demands the MRF Tyres
comparing to other company tyres.
Company provide more advertisement and always keep customers
need with development of MRF Tyres.

Annexure

Questionnaire

Bibliography

MRF Tyres

Customers Satisfaction towards MRF TYRES in Koppa city

QUESTIONNAIRE
Dear Respondents,
I am ,,,,,,,,,,,,,,,,,,,,,,,,,student of the final year B.B.M, Government first
grade college koppa, Conducting a Project on Customers Satisfaction

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towards MRF TYRES in Koppa city as a part of my Management

course. I request you kindly to well converse with this questionnaire,

helping in completion of Survey.

Thanking Your
Dear Sir/Madam,

(Please tick (

) appropriate answer in the box / space)

I. Customer Introduction:
a. Name

_____________________________________________
b. Address

_____________________________________________

_____________________________________________
c. Occupation / Job:
_____________________________________________
II. Which factors motivated you to purchase MRF TYRES?
A: Friends

[ ]

B: Brand Image

[ ]
C: Advertisement

[ ]

D: Relatives

[ ]

MRF Tyres

E: Self decision

[ ]

F: Others

[ ]

III. To what extent the MRF TYRES has satisfied your purpose /
need?
A: Fully Satisfied

[ ]

C: Dissatisfied

B: Satisfied

[ ]

[ ]

D: Fully Dissatisfied

[ ]
IV. As compare to other tyres how do you rate the following
characteristics of your
MRF TYRES
Characteristics
Price
Quality
Durable
Performance
Mileage

Excellent

Very good

Good

Average

V: What is your opinion about MRF TYRES?

A: Excellent
C: Good

[ ]

B: Very Good
[ ]

Government First Grade College Koppa

D: Bad

[ ]
[ ]

83

VI: what was the behavior of show room people while taking quotations
or while
Purchasing MRF TYRES?
A: Very Friendly
B: Friendly

[ ]
[ ]

C: Not-Friendly

[ ]

D: Dont Know

[ ]

VII: What is your opinion about service charges in the show room?
A: Very Reasonable

[ ]

B: Reasonable

[ ]

C: Costly

[ ]

D: Very Costly

[ ]

VIII: Why did you prefer MRF TYRE?

A: Quality
B: Price

[ ]
[ ]

C: Service
D: Durability

[ ]
[ ]

IX: What problems faced while purchasing MRF TYRES?

A: Lack of informations

[ ]

MRF Tyres

B: Non co-operations of show room peoples

[ ]

C: Delay

[ ]

D: No problem

[ ]

X: Give your valuable suggestions to improve MRF TYRES?

A: __________________________________________________
B: __________________________________________________
C: __________________________________________________

***************THANK YOU***************

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BIBLIOGRAPHY
To complete this project I have referred the following books:

1) Marketing Management
PHILIP ROTLIR
SHERLEKAR

2) Net:

www. MRF tyres .com

Www tyres History. Com
Www tyres History in Indian. Com

3Newspaper: The economic Times

WWW.MRFTYRESINDIA.COM