Dated : 06-Aug-2010
During this period his commitment and dedication has been highly
appreciated in the Organization.
From
Maharishi Dayanand University, Rohtak
SUBMITTED TO:
SUBMITTED BY:
Lecturer in Management ARUN KUMAR
Mr. Brijesh Bhardwaj Roll No: BB08004
Regn no. 08-AITF-4304
ADVANCED INSTITUTE OF
TECHNOLOGY & MANAGEMENT, DELHI
MATHURA ROAD, PALWAL,
FARIDABAD.
ACKNOWLEDGEMENT
[Arun
Kumar]
DECLARATION
I hereby declare that the work which is being presented in the project
report entitled MARKETING in the partial fulfillment of the requirement for
the award of Bachelor of Business Administration from Advanced
Institute of Technology & Management, Delhi Mathura Road, Palwal,
Faridabad is record of my own work and was carried for a period of six
weeks under the guidance of to Mr. Girish Chandra Das ,Rict Manager, Apollo
Tyres ltd of commercial work of Marketing Department Appolo Tyres Ltd
India.
Arun Kumar
B.B.A 5th Sem.
PREFACE
Project Title: Market growth of Apollo Tyres Limited vis-à-vis other tyre
companies in the North-East market (in the HCV tyre
segment).
1.1. Objectives:
1.2. Scope:
1.4. Methodology:
2. Sample Size:
• Tyre companies: 6 Nos.
• Dealers of HCV tyre: 45 Nos.
• Customers of HCV tyre: 45 Nos.
• Truck/bus drivers: 120 Nos.
1.5. Findings:
1) The total market potential per month for HCV tyre in the
North-Eastern region has increased from an average of
12,000 tyres in 2000-01 to an average of 17,000 tyres in
2003-04.
c) Advertisements
5YHK
Achieve by 2005-06
A Gross profit of Rs. 500 Crores
And a Turnover of Rs 5000 Crores
Inspired by the Greek Sun God ”Apollo”, Apollo Tyres Limited has
created a remarkable identity of its own style in the Indian tyre market.
So much so that the name itself has become synonymous with the
brand. A marginal player in the tyre industry a decade ago, Apollo
Tyres leads the replacement market in the heavy vehicle and car
radials segments. It has achieved this trough acquisitions and contract
manufacturing.
The history of Apollo Tyres limited can be traced back to the 1970s,
when uncompromising MNC’s and Indian tyre majors dominated the
tyre industry. Since its incorporation in 1972, Apollo had to suffer huge
losses in its infant years, owing to the fact that all tyre majors had high
production capacities as compared to the market demand. Within a
decade though backed by its strong production and marketing
strategies, Apollo had catapulted itself among the top tyre companies
of the country. Thanks to its state-of-the art technology, goal oriented
people and clear, adventurous vision of the top management, Apollo
has become a name to reckon with, not just in the nylon, but also in the
radial tyre segment.
With the kind of progress Apollo has made since its incipient years,
it is difficult to believe that it has been around for a little over two
decades. Now at a shimmering 29, Apollo has been plucky and spirited
enough to give its competitors sleepless nights. Believing firmly in the
philosophy of ‘always looking for new answers’, today’s tyre giant
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 huge challenges so as to turn them around to its
advantages.
2.5. Highlights:
First tyre company with more than 100 sales & service
offices in India
Incorporation: 1972
The company carries out its operations in the North East through
125 dealers. Guwahati itself comprises of 35 dealers. In an attempt to
increase the present market share the company employs various
promotional strategies such as Sales promotional schemes, customer
meet, dealers meet and advertisements.
• Number of dealers :
Guwahati - 35
Entire North-East- 90
.
Table 2.2: Market share of Apollo Tyres Ltd.
• Distribution Network:
Eastern India
Offices
• Manpower:
State In charge: 1
District Manager: 1
Technical Officer: 1
Marketing Executives: 4
C&F Inchargeg: 3 1
If any tyre does not give full service to the customer due to
manufacturing defects, then that tyre is replaced. The truck tyres
of ATL have a warranty period of two years against all
manufacturing defects. The car radial tyres have unconditional
warranty for perid of three years or 50% treadwear whichever is
earlier.
If the tyre does not give full service during the warranty
period due to treadwear or suffers any kind of damage, then
discount of certain percentage of new tyre value compensates
the customer. For example, if a tyre undergoes 50% treadwear
within the warranty period, then the customer ill get a claim of
50% of new tyre value. That means, while buying new tyre, he
has to pay only 50% of the new tyre.
• Customer friendly policies on claims for used tyres
MANAGING DIRECTOR
GENERAL MANAGER
ZONAL MANAGER
REGIONAL MANAGER
STATE IN-CHARGE
DISTRICT MANAGER
S.O/COMMERCIAL
STAFF
A pneumatic tyre must carry the load when mounted on rim and
inflated to the required pressure. In other words pneumatic tyre
must form an air container of adequate strength disposed in the
radial direction to hold the air pressure acting radially.
5. Economic performance:
1. Bead:
2. Sidewall:
The part of the tyre between the bead and tread which
flexes in service.
3. Sidewall rubber:
4. Tread:
5. Cord:
6. Ply:
7. Carcass:
The rubber-bonded cord structure of a tyre integral with
the bead, which provides the requisite strength to carry the
load.
8. Breaker (Diagonal):
9. Belt (radial):
2. Radial tyre
ST-5 Dhruv
KZ- 77 R Bhim
KZ-50 L
KZ-36 L
KZ- Commando
KZ- XDT
KZ-27 L
KZ- 32 S
Chapter III: RESEARCH METHODOLOGY
3.1. Objective:
3.2. Scope:
The research design that has been adopted for the purpose of the
project is of descriptive nature since the focus is on the discovery of
ideas and their study. The project study is of quantitative in nature
based on the interview conducted among the Dealers, Drivers/Owners
and Fitment Surveys and discussions with other companies.
3.4.2. Determining the source of data:
1. Sampling Units:
a. Dealers of HCV tyres.
b. Drivers/Owners.
2. Sample Size :
a. Tyre companies - 6
3. Sampling Procedure:
Data was analysed with the help of softwares like MS Excel and MS
Word. The questions were coded in MS Excel’s Spread Sheet and
thereafter they were analysed and put in a Graphical Format for a
better understanding. The qualitative data collected through interviews
were analysed through discussions.
• Organizational Set-up:
DISTRICT MANAGER
SERVICE ENGINEER
SALES REPRESENTATIVE
LCV 1735(App.)
JK Tyre is the only manufacturer of truck/ bus steel radial tyres, and
the second largest manufacturer of 4-wheeler tyres in the country.
Also, JK Tyre is the largest exported tyre brand from India. It was
awarded the CAPEXIL's Highest Export Award for 1997-97 by FIEO. It
enjoys preferred premium brand status in Truck Bias market in USA
and across many markets in Africa, Middle East and South East Asia.
• Organizational Set-Up:
Area Manager
CEAT has the widest range of tyres for all user segments in India.
Product segmentation, depending on usage needs like overloads, road
conditions and vehicle abuse, can create market fits for these specific
needs. CEAT has created products for each of these segments and
thereby has a cutting edge in this specific market.
CEAT has been exporting tyres since 1964, which has helped it in
getting a firm foothold in export markets. CEAT has now 14% export
market share among Indian companies. Tyres are exported to more
than 30 countries worldwide. Its main business links are in the markets
of Singapore, with 64% market share, UAE, with 42% market share,
Philippines, with 22% market share, USA, Bangladesh, Pakistan,
Vietnam, Iran, Nigeria, Egypt and other African, Middle-East and Far-
East Asian countries. CEAT also produces tyres, which meet the
requirements of international standards: DOT standard (Department of
Transportation), to be able to export tyres towards the USA and IN-
METRO standard to be able to export towards the Latin-American
countries. CEAT’s continuous effort and outstanding export
performance have been recognized by AIRAI & CAPEXIL with several
awards for 10 consecutive years
• Regional Set-up:
Regional Manager
Sales Officer Technical Engineer Commercial Officer
• Distribution Network:
District Manager
Branch Supervisors
Godown Clerk
LCV 6500(App.)
• The company considers MRF Ltd, J.K tyres and Apollo Tyres
Ltd. as it nearest competitor.
Every year one million tyres and tubes roll out of the integrated
facilities from its factory to Balasore (Orrisa). Each tyre, carrying the
seal of Birla quality Assurance, is designed to bring the highest levels
of efficiency, performance, value and satisfaction to buyers and users
throughout India and more than 25 countries. The company started its
operation at Guwahati in 1963.
• Distribution Network:
(Balasore, Orrisa)
• Organizational Set-Up:
Regional Manager
LCV 325(App.)
• The company considers MRF Ltd, J.K tyres and Apollo Tyres
Ltd. as it nearest competitor.
The Fitment survey revealed not only the complete market share of the
brands in the HCV segment, but also the front and rear alignments. This
shows that Apollo Tyres rules this segment, closely followed by MRF,
especially in the rear tyre share.
2%
8%
2%
15% Goodyear-2%
Ceat-8%
Others-2%
24%
1%
8%
1%
30%
Apollo Tyres-30%
15%
MRF-31%
JK-14%
Birla-15%
Goodyear-1%
14% Ceat-8%
Others-1%
31%
• Market share rear alignment (260 Vehicles: 1040 Tyres)
7% 2%
1%
11%
Apollo Tyres-47%
MRF-19%
47% JK-13%
13% Birla-11%
Goodyear-1%
Ceat-7%
Others-2%
19%
5%
10% 22%
Apollo Tyres-22%
4%
MRF-27%
8% JK-24%
Birla-8%
Goodyea-4%r
Ceat-10%
27%
24% Others-5%
HCV Customers
500
438
450 404
400
350 300 313
300 257
Points
250
200
150 92
100
50
0
Apollo MRF JK Birla Ceat Others
Tyres
Brands
• Analysis:
We see here that MRF is rated as the best tyre for mileage in this
segment, Apollo in second and not far behind. MRF’s premium tyres
for mileage are Super Lug and Super Miller (1000x20) and M77 and
Supper Miller (900x20). Whereas in Apollo’s Premium Tyres are XT-7,
XT-9 and Amar Deluxe. It is noticed that one brand, ST-5 is competing
against M-77 of MRF. Though they are of the same pattern (Semi
Lug), M77 is considered superior to ST-5 in terms of mileage.
LCV Customers
250 225
199 191
200 166
159
Points
150
100 68
50
0
Apollo Tyres MRF JK Birla Ceat Others
Brands
• Analysis:
MRF’s Supper Miller and M77 (Rib Pattern) are the premium
tyres in this category. These tyres are known for giving the best
mileage, whereas Apollo’s Amar Delux and Milestar are also giving
good mileage, but the customers rate them at second place after
MRF. Similarly JK’s Jet Rib and Ceat’s FM Sleek are good for mileage
and are rated just below Apollo.
HCV Customers
7%
20%
14%
15%
23%
21%
LCV Customers
7%
17%
12%
14% 21%
13%
16%
HCV Customers
8%
22%
17%
13%
18%
22%
On the other hand MRF here shows its major weakness. It has a
very high probability of cut expansion. The reason for this is that they
are mainly mileage tyres and good for highways and normal loading.
Because of this character they suffer from high probability of cut
expansion.
Another point noticed is that many drivers are not aware that every
tyre has its own application, uses or benefits. Therefore sometimes
tyres like Haulug and Super Rib, which are meant for normal loading,
are used for overloading. If the right tyre is used for the right
application, it will benefit the customer and eventually the company.
Many drivers are also not aware of how to avoid cut expansion.
They use primitive methods like cutters to repair them. But this
actually spoils the tyre after some time.
LCV Customers
8%
22%
17%
13%
18%
22%
Apollo Tyres-202 MRF124 JK-210
Here too we see that Apollo and JK are ranked as the top two and
MRF at the bottom. This is the only place where MRF scores low in
this category. The same reasons as, identified above in the HCV
segment, apply here too. But this segment suffers relatively low cut
and cut expansion problems. The tyres here carry relatively low
weight.
HCV Customers
5%
21%
17%
17%
23%
17%
Apollo Tyres-394 MRF424 JK-320
Birla-313 Ceat-307 Others-97
• Analysis:
LCV Customers
6%
21%
15%
14%
23%
21%
Apollo Tyres-204 MRF220 JK-200
Birla138 Ceat-147 Others-54
• Analysis:
Here again air formation is the least in MRF. Its premium tyres are
M77 and Super Miller in LCV segment too. Apollo tyres is rated good
by the customers. Amar Dlx and Milestar show very low probability of
Air Formation. But about 12 customers said that Apollo’s Amar has a
problem of air formation. The rest of the tyres are good. JK (Jet Rib)
follows closely. It is also considered good in terms of low air formation.
Ceat and Birla just show an average performance.
HCV Customers
450
400
350
300
250
200
150
100
50
0
Apollo
MRF JK Birla Ceat Others
Tyres
• Analysis:
The analysis shows that Apollo tyres is considered the best tyre
for heavy loading. Loadstar, Hercules and XT7 of Apollo are the
premium tyres in the HCV segment. Loadstar is the most wanted tyre
when one is looking for overloading. Apollo Tyres hold the largest
market share in the HCV segment, and the credit goes to tyres like
Loadstar, XT7 etc. Apollo is followed by JK and MRF. JK offers Jet
Track 39 and MRF offers Super Lug 78 and Super Lug 90. Both the
companies offer good tyres for heavy loading. This is followed by
Birla, which is relatively low in the rating with only 326 points, showing
just an average performance. Ceat offers HCL 80, but shows a poor
rating for heavy loading.
LCV Customers
250
200
150
100
50
0
Apollo
MRF JK Birla Ceat Others
Tyres
• Analysis:
As in the HCV segment, Apollo Tyres score maximum in terms of
heavy loading, with Loadstar and XT7, in this segment too. It is
followed by MRF and JK, which get almost equal points. JK and MRF
offer Jet Track and Super Lug in this segment. This analysis also
substantiates Apollo’s supremacy in terms of Heavy Loading. This
perhaps is one of the reasons why Apollo and MRF have a high
overall Market Share in this segment.
5.2.7 Rankings for best Claim Settlement and After Sale
Policy:
800
700
600
500
400
300
200
100
0
Apollo
MRF JK Birla Ceat Others
Tyres
547 663 665 653 561 261
• Analysis:
An overall view of all the HCV and LCV customers has been
taken. This is done after discussions with the management of Apollo
tyres and a few dealers. It was stated that the companies do not
differentiate between segments in its policy for claim settlement.
Therefore and overall ranking was considered.
Here we see that JK, Birla, and MRF give a good response
towards claim settlement, whereas Apollo is ranked relatively low. A
very important observation was that if we take the views of customers
of Guwahati city only, then the ranking of Apollo tyres is very high
along with MRF and JK tyres, but when it comes to smaller towns like
Nagaon, Hojai, Dimapur etc, then the rankings are relatively low. This
shows that the claim settlement policy is well implemented in the
major towns like Guwahati, Tinsukia, but poorly implemented in the
smaller towns. Many customers in towns like Nagaon and Hojai said
that the company sometimes takes as much as three months to give a
verdict on a tyre that has been sent for claim.
5.2.8 Rankings for best Sales Promotion Devices
600
500
400
300
200
100
0
Apollo
MRF JK Birla Ceat Others
Tyres
• Analysis:
Here both the HCV and the LCV segment’s analysis has
been done together, as we saw during the course of the study
that there is almost no difference in the sales promotion
activities performed by the companies for these two segments.
Apollo definitely offers the maximum schemes, gifts, coupons
etc, from time to time, for the drivers/ owners. The other brands
have similar ratings and are placed low in the tally. These
companies offer very limited schemes, and that too between
long gaps. Apollo’s Unconditional Warranty Campaign is a hit
among the truck drivers.
5.3 From the Dealers Survey:
8
8
7 7
6
Number of Dealers
6
5 5 5
4 4
3
3 3
2
2 2
1
0
0-50 50-100 101-150 151-200 201-250 251-300 301-350 351-400 401-450 450-500
Counter Potential (No. of Tyres sold per month)
Analysis : These were the results of ratings for quality.. It was made
clear to the dealer that with Quality we meant an overall view in terms
of Mileage, Retreadibility, Cut expansion etc. The dealers rate Apollo
tyres number one in HCV segment. The best tyres in that category
were XT7 and Loadstar. MRF’s Supper Miller, Super Lug and M77
were considered good. But when it comes to LCV segment, then
Apollo’s ratings seem to go down. Though it has been rated good,
there were a few complaints against Apollo tyres in this segment. Many
dealers said that in the semi lug pattern there was no choice for
customer. Earlier they had Anchor, which was considered very good,
but was later withdrawn form the market. Now M77 of MRF has taken
its share. There is a severe need for a good tyre in this pattern. Also a
few customers told us that Amar and Amar DLX develop shoulder
cracking just after one resoling. Dealers have suggested improving the
quality in this segment.
2003-04 17000
2002-03 15000
Year
2001-02 13500
2000-01 12500
Market Share
2000-2001 22%
2001-2002 26%
2002-2003 29%
2003-2004 30%
29.3%
30.0%
25.0%
20.0% 19.2%
15.0% 13.30%
12.0%
North-East
10.0% 11.1% market
8.0%
Apollo
5.0% Tyres
0.0%
0.0%
2000-01 2001-02 2002-03 2003-04
6.2. Weaknesses:
The pricing of Apollo tyres is generally considered to be
high in the price sensitive Indian market.
Apollo Tyres puts less emphasis on mass media promotion.
Except the truck and bus tyre segment, there is very
low customer awareness about the features of Apollo Tyres,
especially in the passenger car segment.
Low presence in car OE segment and no presence in
two/three wheeler segment
6.3. Opportunities:
Large replacement markets and also unexplored market
in the 2/3 wheelers tyre segment.
Radialisation in commercial vehicle segment and wide
opportunity for Original Equipment (OEM) segment of the
market.
Continued absence of a leading player (Modi
Continental).
Establish leadership position in farm tyre segment and
use dominant position in commercial segment to leverage new
business opportunities.
National Highway development Programme of the
Government of India driving significant change in the road
transportation industry.
6.4. Threats:
6.4.1 External
7.1. Suggestions
• Media advertising
ATL can also venture into 2/3 Wheelers tyres segment as the
countrywide sales of this segment is growing tremendously. Preference
for motorcycles is growing and the topography of the North-astern
region is more suitable for motorcycles. Thus this fast growing segment
has created a lot of opportunities for growth.
ATL must give more incentives to dealers like cash discounts, slab-
wise discounts, etc to help them to push the sales. Also attractive awards
should be given to the dealers giving a high rate of sales in each district. Also
the multi-brand dealers should be motivated to push Apollo tyres over other
brands by convincing them of more benefits.
7.1.4. Opening of more offices in the North-East:
ATL has not been able to serve every market and every sector
in the North-East. To serve the North-East market more efficiently, ATL
should open more offices in the region. At present there are no offices
in the states of Arunachal Pradesh, Manipur, Nagaland and Mizoram.
So the company should consider opening up offices in those states.
Ltd.
2000.
(ii) www.domain-b.com
Dear Sir,
We are management students from New Delhi Institute of
Management. As a part of my summer training in Apollo Tyres Ltd, I
am conducting a survey on the topic “A study of the growth of Apollo
Tyres Ltd”. I hence request you to please spare a few minutes of your
precious time and answer the following questions.
I shall be highly obliged to you for your kind co-operation.
Thanking you,
Yours truly,
Truck
LCV
P/ Radial
P/ Bias
Rating Code
Excellent 1
Good 2
Average 3
Poor 4
Name: …………………………………………………………………………….
1. Please indicate the tyre brand (Apollo, MRF, JK, Birla, Ceat, Goodyear
etc…)
LCV
Rating Code
Excellent 1
Good 2
Average 3
Poor 4
Retreadability
Least probability of cut
expansion
Least probability of air
formation
Heavy loading
After sale policy(Defect
claim/Settlement)
Sales promotion
devices(gifts,draws,cou
pons,schemes,seminar
etc.)
REMARKS ( If Any) :
Appendix III: DISTRIBUTION NETWORK
Appendix IV: FINANCIAL RESULT