ANIRUDH DEWADA Case Study- 1 OLX_SIP_IIMN P18010

Situation analysis

Tyre brand is a world-renowned company in the tyre industry. It is a French company with a rich
heritage spanning over 125 years across 170 countries. It is one of the largest tyre manufacturers in
the world and has been looking to expand its footprint through organic and inorganic means.

The company has been in the country for about 10 years and has an unenviable 4% market share in
the tyre industry vis-a-vis the 19% market share it enjoys globally. There are two key business
segments in the tyre trade: The Truck Bus Radial segment (TBR) & The Passenger Car Radial (PCR)
segment.

Tyre brand is positioned as a premium brand akin to Apple in the smart phone space. Hence when it
comes to the price points in this trade, we are right at the top by a margin. Our closest competitor in
India is Bridgestone in terms of pricing. Despite this today Bridgestone enjoys a market share of about
20% second only to MRF which is at 21%. India is a price sensitive market and the end users are
looking for a product that gives them maximum VFM. Tyre brand is not very big on doing ATL
activities simply because we believe the ROI would not be worth it. So, we wish to first establish a
very strong network through dealers and other alternate channels before we explore that area. We
are open to BTL activities and have been doing the same frequently.

Problem statement

To increase the market share of Tyre brand by 3% over the next 12 months.

Options Available

1. Use the Below the line advertising to increase the awareness about the product to the
consumer.
2. Use Demographics to find out the target audience for the car customers.
3. Analyse the competitors pricing against the Tyre Brand Product.

Criteria for Evaluation

1. Use the 4 P’s strategy to reach out to the car consumers i.e. Product, Price, Place,
Promotion
2. Target the audience of aged between 20-30 years of age for reaching the customer
base and become leader of the product.
3. Supply chain strategy: Build an adaptive and agile supply chain with rapid planning and
integrated execution Once executives are able to better understand and shape demand
and risk, they need to adapt their supply chains to changing market opportunities and
events. Companies must deploy dynamic planning capabilities and continually fine-
tune operations to ensure responsive agility to meet changing demand.

Evaluation of options

 4 P’s strategy

Product: we need to get to know about the value of products by using BTL advertising to reach
consumers and make them loyal to Tyre Brand product which is good for cars and made them
acceptable

Pricing: we need to analyse the competitor pricing on tyre products and make a pricing which can
be done by putting down the price and provide the free insurance to consumer which will be
selling point to get ahead of competitors and it is affordable for the consumer

Place: we need to put the products and find the shops where most of the customers can reach
and buy the tyres which is easily accessible to shops. We can use our strong network and made
our product available to the consumers

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ANIRUDH DEWADA Case Study- 1 OLX_SIP_IIMN P18010
Promotion: BTL advertising is best way to promote our products through bill board on highways,
do some activities to made aware of tyre brand is not just product they care for us. This way the
product will be get aware by the consumers

 By using the demographics, we can target the audience of 20-30 years of age and who
are from middle class family. As you are aware of its India is known to have highest
percentage of youngest people in the country aged between 21-35.
 Supply Chain Strategy: Build an adaptive and agile supply chain with rapid planning and
integrated execution
As we have strong network between the dealers and retailers, we can make agile supply
chain and choose the vehicles which is fast and helpful to reach the tyres on time to the
shops and use the data where the demand is high so that we can have the product stored
in the warehouses

Recommendation:

Tyre Brand use the BTL advertising to made aware of the product to consumer and use agile supply
chain strategy to reach the demands for tyres in particular areas.

Action Plan

Buy the warehouses and supply the tyre products to warehouses as per the demand of the region.

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