Download - Increasing market share for Apollo
NAMAN SHARMA - B.I.M.M PUNE
A RESEARCH PROJECT REPORT ONINCREASING MARKET SHARE IN RURAL AND
SEMI URBAN MARKETS FOR
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE P.G.D.M DEGREE COURSE OF BIMM
BY:-NAMAN SHARMA
MM13153142013-15
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
TYRE CONSTRUCTION
BIAS PLY (NYLON)
RADIAL PLY(STEEL)
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PREREQUISITE KNOWLEDGETYRE BASICS
BASIC TERMINLOGYTREADSIDEWALLBEAD
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
TYPES OF TREADS COMMERCIAL VEHICLES
RIB PATTERN LUG PATTERN BLOCK PATTERN
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
TYPES OF TREADSPASSENGER VEHICLES
UNDIRECTIONAL ASYMMETRICAL COMBINATION
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
TYPES OF TREADSOTR VEHICLES
ROCK PATTERN TRACTION PATTERN BLOCK PATTERN
RIB PATTERN SMOOTH PATTERN
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
TYRE TERMINOLOGY
TRUCK TYRES10.00 – 20 18PR
“10.00” – Section Width (Inches)“-“ - Bias construction
“20” - Rim Diameter (Inches)18PR – Ply rating
PASSENGER CAR TYRE
185/65 R 14 86 H“185” – Section width (mm)
“65” – Aspect ratio(%) = Sidewall Height computed as 65% of 185mm“R” – Radial construction
“14” – Rim Diameter (inch)“86”- Load Index rating
“H” – Speed rating
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGETYRE BASICS
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGEVEHICLE BASICS – H.C.V
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PREREQUISITE KNOWLEDGEVEHICLE BASICS – L.C.V
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PREREQUISITE KNOWLEDGEVEHICLE BASICS- S.C.V
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGEVEHICLE BASICS- FARM
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PREREQUISITE KNOWLEDGEVEHICLE BASICS- INDUSTRIAL
NAMAN SHARMA - B.I.M.M PUNE
PREREQUISITE KNOWLEDGEVEHICLE BASICS-PASSENGER CAR
CAR SEGMENT LENGTH OF THE MODEL TYPE
CAR MODEL BELONGING TO THAT SEGMENT
A1 Upto 3400 mm Nano
A2 3401 to 4000 mm
Alto,i10,Zen,Wagon R
A3 4001 to 4500 mm
Manza,Logan,Dzire,City
A4 4501 to 4700 mm
Corolla,Octavia,optra
A5 4701 to 5000 mm
Accord,Camry,Sonata
A6 More than 5000 mm
Mercedes S class
B1 Vans/Jeep Versa,Omni
B2 MUV/MPV Sumo,Innova
SUV SUV Vitara,CRV
NAMAN SHARMA - B.I.M.M PUNE
OBJECTIVE OF PROJECT
• To determine strategies to increase market share in rural and semi urban markets by determining and analyzing factors which are affecting growth of company in rural and semi urban market and finding out ways to over come them.
• Giving possible suggestions to Apollo to gain a competitive edge in its current market.
NAMAN SHARMA - B.I.M.M PUNE
RESEARCH METHODLOGY• Type of Research – Both Primary and Secondary type of research was used.
For Secondary Research – Data given by company was analyzedFor Primary Research - Causal research was done. First Descriptive Research
done through Cross sectional studies then conclusive to find the causes• Sampling Plan –
For Dealers – Census surveyFor Customers – Random probability sampling providing
10 samples per category i.e total 70 samples• Instrument used – Questionnaire • Method to use Instrument - Scheduled Format• Area Covered – Ajmer Zone and Upcountry• Time Frame – 50 days• Limitations – Research is subject to following limitationsAll the respondents taken were from Ajmer Zone and Upcountry region so it may
not be valid for other geographies.
NAMAN SHARMA - B.I.M.M PUNE
Segmentation of Tyre Industry TYRE INDUSTRY
COMMERCIAL VEHICLES PASSENGER VEHICLES OFF HIGHWAY VEHICLES
HCV LCV SCV FARM OTR INDUSTRIAL
CARS MOTORCYCLE
NAMAN SHARMA - B.I.M.M PUNE
COMPANY PROFILE
NAMAN SHARMA - B.I.M.M PUNE
COMPANY PROFILE
Chairman & Managing Director – Onkar Singh KanwarCorporate Headquarters – Gurgaon (India)• Manufacturing Plants –• Perambra , Kerala (India)• Kalamassery, Kerala (India)• Kanchipuram, Tamil Nadu (India)• Limbda, Gujarat (India)• Bulawayo, Zimbabwe (Africa)• Durban, South Africa (Africa)• Enschede, Netherlands (Europe)Regional Hubs –• Bangkok, Thailand• Dubai, UAE
NAMAN SHARMA - B.I.M.M PUNE
COMPANY PROFILE
Brands -• Apollo• Vredestein• Regal• Myola• Kaizen
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COMPANY PROFILEPERFORMANCE ANALYSIS
PLANT CAPACITY
NET PROFIT
TOTAL SALES
2009 2010 2011 2012 2013
Se-ries1
950 1160 1395 1595 1785
100500900
13001700
MT/
Day
2009 2010 2011 2012 2013
Series1
49.8 81.2 88.7 121.5 127.9
1070
130
Rupe
es B
illio
n
2009 2010 2011 2012 2013
Se-ries1
1.4 6.5 4.4 4.1 6.1
0.52.54.56.5
Rupe
es B
illio
n
NAMAN SHARMA - B.I.M.M PUNE
COMPANY PROFILEREVENUE ANALYSIS
65%
23%
12%
Revenue By Geography
IndiaEuropeSouth Africa
24%
66%
10%
Revenue By Customer
OEMReplacementExport
33%
48%
9%
9% 1%
Revenue by Product
Passenger Vehicle
Truck-Bus
Off Highway
Light Truck
Others
Country/Area Sales (In Billion Rupees)India 83.135Europe 29.417South Africa 15.348
CUSTOMER SALES ( In billion rupees)
OEM 30.696
Replacement 84.414
Export 12.79
PRODUCT SALES (In billion rupees)
Passenger Vehicle 42.207
Truck-Bus 61.392
Off Highway 11.511
Light Truck 11.511
Others 1.279
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PRODUCT
BRAND – PRODUCT MATRIX
POTENTIAL PRODUCT Height to Width Ratio is highAUGMENTED PRODUCT Rapid Acceleration, Multi Terrain, Superior Control at High Speeds EXPECTED PRODUCT High Elasticity, Low Steering Force, Low Maintenance, High SafetyBASIC PRODUCT Traction, Durability, ReliabilityCORE BENEFIT Comfortable Ride
Passenger cars 4x4 Light Truck
Truck/Bus Bicycle OTR & Earthmover
Specialty 2 Wheeler 3 Wheeler
Apollo
Vredestein
Kaizen
Regal
Mayola
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PRODUCT
COMMERCIAL VEHICLES PASSENGER VEHICLES
OFF THE ROAD
VEHICLES
BRAND
XT-7
XT-7 HAULUG
XT-7 GOLD
AMAR
AMAR DLX
AMAR AT-RIB
AMAR GOLD
CARGO MILLER
CARGO TUF
CARGO MILLER
CARGO SL
MILESTAR
CHAMPION
CHAMPION GOLD
XT-9
XT-9 PLUS
XT-9 GOLD
XT-100K
LOADSTAR SUPER
LOADSTAR SUPER
GOLD
LOADSTAR SUPER
XP
RANCER
DURAMILE
LUG MILLER
ENDURANCE MD
ENDURANCE MA326
ENDURANCE MA
ENDURANCE CD
ENDURANCE LD
ENDURANCE RA
ENDURANCE RD
BRAND
ASPIRE 4G
ASPIRE
ALNAC 4G
AMAZER 4G
AMAZER 3G MAXX
AMAZER 3G
AMAZER XL
ACLERE MAXX
ACLERE
APTERRA HP
(For SUV)
APTERRA HL
(For SUV)
APTERRA HT
(For SUV)
APTERRA AT
(For SUV)
QUANTUM
(For VAN/JEEP)
QUANTUM PLUS
(For VAN/JEEP)
SPORTRACS
(Vredestein Banden)
Ultrac Ceuto
(Vredestein Banden)
Ultrac Sessanta
(Vredestein Banden)
Ultrac SUV Sessanta
(Vredestein Banden)
BRAND
KRISHAK PREMIUM
POWERHAUL
FARM KING
(RADIAL)
KRISHAK GOLD
KRISHAK SUPER
KRISHAK PREMIUM
KRISHAK PREMIUM CR
Y-LON
XTRAX IT 416
XTRAX IT 426
XTRAX E3
XTRAX GRADER
XTRAX RC317
DHRUV
XTRAX
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PRICE
CARTEL BEHAVIOUR MAJOR DETERMINANTS OF TYRE PRICE ARE • COST OF RAW MATERIALS• COMPETITIVE PRICING• DEMAND
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PRICE
Cost of Raw Materials
NATURAL RUBBER
44%
NYLON TYRE CORD FABRIC
19%
CARBON BLACK12%
RUBBER CHEMICALS5%
BUTYL RUBBER4%
PBR5%
SBR5% OTHERS
6%
RAW MATERIAL COMPONENTS OF TYRE
Raw Material Total cons.*
Tyre Sector Cons*
Non tyre sector cons*
Total Imports Tyre Sector imports
Non Tyre sector Imports
Natural Rubber
964400 65% 35% 213780 95% 5%
SBR 185200 73% 27% 137000 100% -
PBR 134600 83% 17% 62600 100% -
Carbon Black 410000 100% - 90000 100% -
Nylon Tyre Cord
125000 100% - 58000 100% -
Rubber Chemicals
40000 100% - 20000 100% -
Steel tyre cord
30000 100% - 20000 100% -
Butyl rubber 58000 100% - 58000 100% -
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PRICE
Cost of Raw Materials
16400
16600
16800
17000
17200
17400
17600
17800
18000
1820018100
1790017800
17300
17000 17000
17200
17600
17800
17000
RUBBER PRICES
Time
Pric
e pe
r 100
kg
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PROMOTION
The 6 M of promotionMONEY- About 2-3% of company’s revenue is being used for
advertisement and product promotion.MEDIA- Company is using a variety of media resources starting from
public relations to direct marketing to relationship marketingMESSAGE- Main focus is on communicating their vision of providing
best value to customers in terms of quality, durability and value for money.
MISSION- Mission is to strengthen their brand awareness and improvement of perception
MARKET- Communication is based on the consideration that their market consists of both end customer (replacement market) and B2B (OEM market).
MEASURE- Metrics used are response rate at customer level and loyalty rate at OEM level.
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PROMOTION
August 2013 major joint venture with “Manchester United”
Apollo produce football based play zones constructed from used tyres
As a part of promotion scheme company is offering major product discounts
NAMAN SHARMA - B.I.M.M PUNE
MARKETING MIX PLACE
CHANNEL INTENSITY – HIGH END INTENSE CHANNEL WITH A NETWORK OF 4000 DEALERS (REPLACEMENT MARKET)
4000 DEALERS
1500 MULTI BRAND DEALERS 2500 EXCLUSIVE APOLLO DEALERS
R.E.D APOLLO ZONE APOLLO POINT APOLLO CORNER APOLLO CV ZONE
NAMAN SHARMA - B.I.M.M PUNE
S.W.O.TINTERNAL FACTORS
Strengths:-• Strong Brand recall• Huge Brand portfolio• Huge Product portfolio• Robust Inorganic growth• Operates in large international markets• Extensive distribution network• Established a premium position in European marketWeakness:-• Involvement in price fixing allegations impacts company’s reputation.• India has large 2-3 wheeler tyre segment however Apollo does not
manufacture for this category.• Company is not able to pass cost escalations to consumers due to intense
competition.• Labour unrest and strikes.
NAMAN SHARMA - B.I.M.M PUNE
S.W.O.TEXTERNAL FACTORS
Opportunities:-• Poised to benefit from growing automotive manufacturing industry
in India.• Expansion into Sri Lankan automobile market.• Europe developing as a key market• Company is planning to grow into new markets such as America
Australia and South East AsiaThreats:-• Economic downturn in key markets such as India and Europe• Increased competition from global players like Michelin and
Bridgestone in India particularly in truck bus radial tyre category• Increase in raw material price volatility• Threat from cheap Chinese import
NAMAN SHARMA - B.I.M.M PUNE
TOWS MATRIXSO STRATERGY Huge brand portfolio of the company will help them during
their inorganic growth in new markets by gaining more market share and at the same time de risking the company from relying only on 1 product or 1 market.
Growth in European market will increase company’s global presence and will lead to higher brand recall and will make company a global player.
Exploration of new virgin markets in South East Asia and Africa may make company market leader over there and can increase the sale drastically
WO STRATERGY Lack of presence in 2 and 3 wheeler segments will be a huge
setback for company in new markets. Involvement in price fixing allegations may affect company’s
image in new market
ST STRATERGY Strong brand recall under their Vredestein brand but economic
downturn in European market will slow them down. Have good financial position but have to compete with
international brands.
WT STRATERGY Large amount of labour strikes will affect production thus
hampering sales in new market Government policies will play a crucial role in new markets Cheap Chinese import will take benefit from intense
competition thus company may be forced to reduce prices further
NAMAN SHARMA - B.I.M.M PUNE
STRATERGIESGROWTH STRATEGIES
HORIZONTAL INTEGRATION -APOLLO – DUNLOP MERGER – • Purchased Dunlop tyres in 2006.• 3 production units whose total capacity is 180 tonnes a day APOLLO – VREDESTEIN BANDEN ACQUISITION - • Added $ 450 million to Apollo’s Annual sales • Entry in European market • Plant in Enschede had an annual capacity for 5.5 million tyres.
VERTICAL INTEGRATION-• Acquired 10,000 hectares of rubber plantation in Laos in South East
Asia
DIVERSIFICATION• Apollo LogiSolutions • UFO Moviez
NAMAN SHARMA - B.I.M.M PUNE
INDUSTRY ANALYSIS
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
Turnover of Indian tyre industry Rs 43,000 crores
Tyre Production (Tonnage) 15 Lakh M.T
Tyre Production – All Categories 2254 lakhs
Number of tyre companies 39
Industry Concentration10 companies account for 95% of production
Radialisation Level
Passenger cars – 98%Light Commercial Vehicles – 20%Heavy Vehicles- 18%
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
Truck/Bus
Pas-senger
Cars
LCV Tractor Front
Tractor Rear
Tractor Trailer
ADV Scooter Motor Cycle
Indus-trial
OTR
Series1 16085 28736 6688 2756 1889 1022 293 22194 44857 681 196
2500
7500
12500
17500
22500
27500
32500
37500
42500
Categorywise tyre Supply
Sale
s (In
000
num
bers
)
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
SEGMENT REVENUE(in %)
TRUCK/BUS 54%
LIGHT TRUCK 9%
PASSENGER CARS 14%
FARM 8%
TWO WHEELER 13%
OTHERS 3%
Tyres for: 2011-12 2012-13 Change
Truck & Bus 119.51 127.09 6%
Passenger Car 213.79 238.83 12%
L.C.V 50.52 44.95 -11%
Tractor Front 20.59 21.13 3%
Tractor Rear 14.13 14.26 -0.3%
Tractor Trailer 7.48 6.77 -9%
Scooter/Moped 166.36 121.58 -27%
Motor cycle 340.67 320.80 -6%
Off The Road 1.44 2.25 56%
Other tyres 7.18 7.42 3%
Total 941.84 922.05 -2%
CATEGORYWISE TYRE PRODUCTION IN INDIAFY 2011-12 – 2012-13 (April – December)(In lakh no.)
REVENUEWISE TYRE INCOMEFY 2011-12
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
Category Production(nos)2012-13(April- December)
Segmentwise SupplyReplacement Market/Govt.
OEM Exports
Truck/Bus 12709061 9277614 1779268 1652179Passenger car
23883000 12657990 10030986 1194150
L.C.V 4495000 1887900 1573250 988900Tractor Front 2113000 1225540 866330 2113
Tractor Rear 1426000 527620 869860 28520
Scooter/Moped
12158000 4498460 6808480 851060
Motor Cycle 32080000 12511200 18606400 962400
SEGMENT WISE TYRE SUPPLYFY 2012-13(April-December)
Replacement51%
OEM41%
Exports8%
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Series1
41415 42471 43514 51585 54690 60082 66032 73545 81103 82107 97137 119197
125397
10000
30000
50000
70000
90000
110000
130000
Growth rate of tyre industry
Tota
l pro
ducti
on (I
n 00
0 no
s)
NAMAN SHARMA - B.I.M.M PUNE
CURRENT OVERVIEWFOR (2011-2012)
0% 0% 1%
4%4%
9%
13%
14%
23%
32%
Indian Tyre Market
PTL EnterprisesKryptonGovind RubberTVS SrichakraGoodyearBalkrishnaCeatJK tyresApollo tyresMRF tyres
NAMAN SHARMA - B.I.M.M PUNE
P.E.S.T ANALYSIS
POLITICAL FACTORS• Serious anomaly of Customs Duty on raw-material (Natural Rubber@20%)
being higher than the Customs Duty on finished product (Tyres @10%)• Proposed custom duty for RAW materials not being implemented
No.
Raw-Material(s) Customs Duty (%) Proposed
1 Nylon Tyre Cord 10% 5%2 PBR 10% 5%3 Rubber Chemicals 7.50% 2.50%4 Steel Tyre Cord 10% 5%5 Polyester Tyre Cord 5% Nil
NAMAN SHARMA - B.I.M.M PUNE
P.E.S.T ANALYSISPOLITICAL FACTORS• Duties of WTO nations under FTA differ from normal duties which creates
different prices and price fluctuationsProduct Custom
Duty in %Asia Pacific Trade Agreement
Indo-Sri Lanka Agreement
SAFTA-Pakistan,Sri Lanka
SAFTABangladesh,Bhutan,Maldives,Nepal
India –Singapore CECA
India – South Korea CEPA
India- Chile Agreement
India- Japan CEPA
IndiaMalysia Trade agreement
India- ASEAN
Truck/Bus(Radial) 10% 8.6 Nil 6 Nil N.C N.C N.C N.C 7 7
Truck /Bus(Bias) 10% 8.6 Nil 6 Nil Nil N.C N.C N.C N.C 7
Motor Cars(Radial) 10% 8.5 Nil 6 Nil N.C N.C N.C N.C 7 7
Motor Cars(Bias) 10% 8.5 Nil 6 Nil Nil N.C N.C N.C N.C 7
Aircraft 0% 2.58 Nil 3 Nil 0.75 2.25 N.C 0 N.C 2
Motorcycle 10% 8.6 Nil 6 Nil Nil N.C N.C N.C 7 7
Scooter 10% 8.6 Nil 6 Nil Nil N.C N.C N.C N.C 7
Industrial Vehicle 10% 8.6 Nil 6 Nil Nil 7.81 N.C 7.3 5 5
Tractor 10% 8.6 Nil 6 Nil Nil 7.81 N.C 7.3 5 5
Use rubber tyres 10% N.C N.C 6 Nil Nil N.C N.C N.C N.C 7
Retreaded tyres 10% N.C N.C 6 Nil N.C 7.81 N.C N.C 5 7
NAMAN SHARMA - B.I.M.M PUNE
P.E.S.T ANALYSIS
ECONOMICAL FACTORS
Increase in wear & tear of tyres
Creates Replacement
demand for Tyres
Growing Economy
Increase in demand of freight movement
Increase in Commercial Vehicle Demand
Increase in Tyres Demand from OEMs
Creates Tyr replacement demand after 12-18 months
Increase in tyre sales
Increase in level of income - Increase in Income for
disposal
Increase in demand for
passenger cars - tyres
Demand for Replacement in
24 to 48 months
NAMAN SHARMA - B.I.M.M PUNE
P.E.S.T ANALYSIS
SOCIAL FACTORS• Nuclear families• High vehicle density per familyTECHNOLOGICAL FACTORS• Radial expansion• Greenfield projects
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISMRF
SW Analysis of MRFSTRENGTH• Extremely high brand recall.• Extreme brand loyalty with present customers• High amount of customer satisfaction• Presence in niche segments like aviation tyres, defence sector.• Diversification in toys and racing.• Has the highest market share and still commands the PRICE MAKER STATUSWEAKNESS• MRF’s only Achilles heel is dealer relations. Although MRF has good policy
supporting dealers but company hardly pay any attention on incentivizing the dealer.
• High labour unrest and strikes
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISJ.K TYRES
SW of JK TyresStrengths• Presence in low cost segments under the brand name
VIKRANT.• Large product and brand portfolio• Second largest exporter of tyres after CEAT(2012)• Good brand perception in India and good brand recallWeakness• An excessive “Indian” touch has been given to the company
which is not good either in imports or in exports.• Very less concern about 2 wheeler and 3 wheeler segment.• Limited market share due to presence of other big brands.
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISCEAT
SW analysis of CEATStrength• CEAT has done tie ups with global players like Pirelli to
import technology of radial tyres• Ceat acquired Harrison rubber unit which drastically
reduced its operating cost• Largest exporter of tyres in 2012Weakness• Less presence in the international markets compared to
industry leader despite being largest exporter• Has a very limited market share
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISGOODYEAR
SW of GoodyearStrength• Second highest global market share , market leader in USA and second highest
market share in Europe.• Global footprints with operations at 54 sites spread over more than 22 countries.• High tech innovation centres at Ohio and Luxemburg provides them with cutting
edge technology.• Most successful tyre supplier in Formula 1 racing.• Excellent team of 70,00 employees globally • Strong brand recognitionWeakness• Weak supply chain• Weak cost structures• Penetration in Asian economies is very less.• Alleged exposure to asbestos has weakened the brand image• 19th largest air polluter in USA
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISBRIDGESTONE
SW analysis of BRIDGESTONEStrengths• Its 52 enterprises and 50,000 employees testify the fact that it
is a huge brand name• Huge diversification into other businesses like production of air
springs, roofing materials , industrial fibers and textiles.• Large size provides economies of scale• Is going green under ‘One Team One Planet’Weakness• No significant market in developing countries• Products are perceived to be a high price segment products ,
hence it needs to work on developing economy products.
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISMICHELIN
SW Analysis of MICHELINStrength• Manufacturing facilities in 18 countries with sales in 170
countries.• They offer ‘Maps and Guides’ and have an excellent
service ‘Via Michelin’ that helps in planning trip• Strong and competent spirit of R&D Weakness• Stiff competition from existing tyre brands• Not entered the emerging economies in a big way• Over leveraged financial position
NAMAN SHARMA - B.I.M.M PUNE
COMPETITOR ANALYSISCONTINENTAL
SW Analysis of CONTINENTALStrength• Large product portfolio• 140 years old company and true sense global with markets in Africa,
Europe, America, Asia and Australia.• Company is acquiring companies in Malaysia and Modi tyres in India
thereby showing intentions of expanding in emerging economies of the world
• Sponsors of FIFA world cup 2014 and other major global events increasing its brand image drastically.
Weakness• Not much visible in India and a few emerging countries• Have to deal with poor economic conditions in Japan, US and European
economies
NAMAN SHARMA - B.I.M.M PUNE
CURRENT SCENARIO
APOLLO17%
MRF21%
JK9%
CEAT3%
GOODYEAR13%
BRIDGESTONE18%
OTHERS19%
P.C.R SEGMENT
APOLLO20%
MRF22%
JK11%
CEAT8%
BIRLA11%
GOODYEAR25%
OTHERS3%
FARM SEGMENT
APOLLO27%
MRF21%JK
19%
CEAT11%
BIRLA14%
BRIDGESTONE3%
MICHELIN1%
OTHERS4%
H.C.V SEGMENT
APOLLO27%
MRF26%
JK19%
CEAT7%
BIRLA6%
OTHERS14%
L.C.V SEGMENT
NAMAN SHARMA - B.I.M.M PUNE
ANALYSIS AND INTERPRETATION OF QUESTIONNAIRE
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
Tyre dealers; 35; 97%
Tread dealer; 1; 3%
Types of dealer by product
Exculsive Apollo Dealer; 20; 57%
Multi Brand Dealer; 15; 43%
Type of Dealer by number of brands
COMPLAINTS; 31; 89%
NO COMPLAINTS; 4; 11%
NUMBER OF COMPLAINTS
MORE THAN 1 TYPE OF COMPLAINTS; 9;
29%
1 TYPE OF COMPLAINT; 22;
71%
NUMBER OF COMPLAINTS
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
CUSTOMER DEMAND; 6;
40%
COM-MISSION;
6; 40%
BOTH; 3; 20%
REASON FOR SALE OF OTHER COMPANY'S PRODUCT
DO NOT INFLU-
ENCE; 17; 49%
INFLU-ENCE; 18;
51%
INFULENCING CUSTOMER
URBAN CUSTOMER; 4; 11%
RURAL CUS-
TOMER; 31; 89%
HIGHER BARGAINING POWER
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
PASSENGER CAR24%
COMMERCIAL VEHICLE72%
OFF HIGHWAY VEHICLE4%
CATERGORY WISE SALES
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
AMAZER 3G12%
AMAZER XL41%
AMAZER 3G MAXX9%
AMAZER 4G8%
QUANTUM6%
ACELERE11%
ALNAC 4G6%
APTERRA5%
ASPIRE 4G3%
PCR Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
AMAR DELUXE24%
AMAR GOLD51%
ST-50%
AT RIB3%
XMR21%
H.C.V BIAS FRONT SalesCHAMPION
2%CHAMPION GOLD
2%XT-7 HAULUG
2%
XT-7 GOLD PLUS23%
XT-72%
XT-90%
XT-9 GOLD13%
XT 100-K19%
LOADSTAR SUPER35%
LOADSTAR SUPER XP1%
LOADSTAR SUPER GOLD3%
H.C.V BIAS REAR Sales
ENDURANCE MD14%
ENDURANCE LD43%
ENDURANCE CD8%
ENDURANCE MA17%
ENDURANCE MA 32617%
ENDURANCE RA0%
H.C.V RADIAL Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
KAIZEN 77R13%
KAIZEN 99R30%
KAIZEN 99R PLUS40%
KAIZEN 100R18%
KAIZEN BIAS FRONT Sales
KAIZEN 21L14%
KAIZEN 27L9%
KAIZEN 50L32%
KAIZEN XDT22%
KAIZEN XLM23%
KAIZEN BIAS REAR
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
MILESTAR3%
AMAR DELUXE41%
AMAR GOLD56%
L.C.V BIAS FRONT Sales
LOADSTAR SUPER58%
LOADSTAR SUPER XP4%
XT-7 GOLD PLUS38%
L.C.V BIAS REAR Sales
DURAMILE100%
L.C.V RADIAL Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
AMAR DELUXE48%
LOADSTAR SUPER XP7%
LOADSTAR SUPER45%
S.C.V Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSIS
FARM KING4%
KRISHAK GOLD32%
KRISHAK PREMIUM54%
POWERHAUL11%
TRACTOR REAR Sales
KRISHAK PREMIUM CR69%
KRISHAK PREMIUM 6%
KRISHAK GOLD FRONT26%
TRACTOR FRONT Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
MRF
MBD selling MRF tyres; 11; 73%
MBD not selling MRF tyre; 4; 27%
MRF PENTRATION
TBB; 40%
TBR; 11%
PCR; 29%
LTB; 5%
LTR; 3%
SCV; 6%
TR; 4% TF; 2%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
BRIDGESTONE
MBD selling BRIDGESTONE; 4;
27%
MBD not selling BRIDGESTONE; 11;
73%
BRIDGESTONE PENETARTION
TBR66%
PCR34%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
CONTINENTAL
MBD selling CONTI-NENTAL tyres; 2; 13%
MBD not selling CON-TINENTAL tyres; 13;
87%
CONTINENTAL PENTRATION
TBB; 69%
TBR; 31%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
J.K TYRES
MBD selling JK tyres; 2; 13%
MBD not selling JK tyres; 13; 87%
JK PENTRATION
TBB; 50%TBR; 50%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
BIRLA
MBD selling BIRLA tyres; 4; 27%
MBD not selling BIRLA tyres; 11; 73%
BIRLA PENETRATION
TBB; 40%
TBR; 30%
TF; 30%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISCOMPETITOR PENETRATION
MICHELIN
MBD selling MICHELIN; 5; 33%
MBD not selling MICHELIN; 10; 67%
MICHELIN PENTRATION
TBR81%
PCR15%
LTR4%
SEGMENT WISE SALES FROM MBD
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISUSING SPSS
Q1 Is there any correlation between number of brands (companies) a dealer is keeping and his total sales?
• H0 : Total sales of a dealer is independent of the number of brands (companies)
• HA : H0 is false.
There is strong correlation between Number of brands(companies) a dealer is keeping and total sales at 0.702 and is significant at 0.000 therefore we reject H0
Correlations
Number Of Brands Total Sales
Number Of Brands Pearson Correlation 1 .702**
Sig. (2-tailed) .000
N 35 35
Total Sales Pearson Correlation .702** 1
Sig. (2-tailed) .000
N 35 35
**. Correlation is significant at the 0.01 level (2-tailed).
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISUSING SPSS
REGRESSION EQN = 1.338 + (0.875)*Number of Brands
Model Summary
Model
R R Square
Adjusted R
Square
Std. Error of the
Estimate
d
i
m
e
n
s
i
o
n
0
1 .702a .493 .477 1.321
a. Predictors: (Constant), Number Of Brands
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regressio
n
55.931 1 55.931 32.038 .000a
Residual 57.612 33 1.746
Total 113.543 34
a. Predictors: (Constant), Number Of Brands
b. Dependent Variable: Total Sales
Coefficientsa
Model
Unstandardized
Coefficients
Standardi
zed
Coefficie
nts
t Sig.B Std. Error Beta
1 (Constant) 1.338 .385 3.475 .001
Number Of
Brands
.875 .155 .702 5.660 .000
a. Dependent Variable: Total Sales
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISUSING SPSS
Q2 Is the number of brands he is keeping is affecting the sales of Apollo tyres?• H0 : Sales of Apollo tyres is independent of the number of brands the dealer is
keeping.• HA : H0 is false
Apollo sales and number of brands have a weak correlations at 0.207 and is insignificant at 0.232 hence we accept H0
Correlations
Apollo Sales Number Of Brands
Apollo Sales Pearson Correlation 1 .207
Sig. (2-tailed) .232
N 35 35
Number Of Brands Pearson Correlation .207 1
Sig. (2-tailed) .232
N 35 35
NAMAN SHARMA - B.I.M.M PUNE
DEALER ANALYSISUSING SPSS
Q3 Is being exclusive Apollo dealer affecting the sales of Apollo tyres?• H0 : Sales of Apollo tyres is independent of being an Exclusive dealer .
• HA : H0 is false
F value is 1.171 and is insignificant at 0.287 hence accept H0
ANOVA
Apollo Sales
Sum of Squares df Mean Square F Sig.
Between Groups 2.752 1 2.752 1.171 .287
Within Groups 77.533 33 2.349
Total 80.286 34
NAMAN SHARMA - B.I.M.M PUNE
5TH JUNE 2014
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSIS
FIRST RANK SECOND RANK THIRD RANK FOURTH RANK FIFTH RANK
Brand Name 24 20 10 6 10
Price 12 27 15 10 6
Quality 18 16 28 8 0
Purchasing Ease 8 5 11 28 18
Carrying capacity 8 2 6 18 36
2.5
7.5
12.5
17.5
22.5
27.5
32.5
37.5
Priority Ranking
No.
of r
espo
nden
ts
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISH.C.V
Product Complaint
40%Policy
Complaint50%
No complaints10%
Type of complaints
APOLLO-AMAR GOLD; 27%
KAIZEN-99R; 9%
MRF- SUPER MILER 99; 36%
JK- JET R MILES; 18%
APOLLO-AMAR DELUXE; 9%
H.C.V BIAS RIB
MRF-SUPER LUG 50
PLUS54%
JK-JET ONE8%
APOLLO-LOADSTAR SU-
PER23%
BIRLA-BT11215%
HCV BIAS LUG
APOLLO-EN-DURANCE LD; 29%
BRIDGESTONE-M729; 12%
MRF-S3B4; 4%MICHELIN-XZY3HD; 16%
APOLLO-EN-DURANCE MA326;
8%
JK-JETSTEEL; 10%
CONTINENTAL -SDR; 10%
CHINESE; 4% BIRLA-S321; 4%BRIDGESTONE-M751;
2%
HCV RADIAL
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISL.C.V
PRODUCT COMPLAINT
50%
POLICY COMPLAINT
50%
TYPE OF COMPLAINTAPOLLO-AMAR
GOLD20%
APOLLO-AMAR DELUXE
10%
MRF-SUPER MILER 9930%
CEAT - RIB10%
JK- JET RIB10%
BIRLA-BT33320%
LCV BIAS RIB
MRF- SUPERLUG 50 PLUS40%
APOLLO-LOADSTAR SUPER
30%
JK-JET XTRA20%
MRF-M7710%
LCV BIAS LUG
APOLLO - DURAMILE
40%
MRF-STEEL MUSCLE20%
JK- STEEL KING40%
LCV RADIAL
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISS.C.V
PRODUCT COMPLAINT
60%
POLICY COMPLAINT
30%
NO COMPLAINTS10%
TYPE OF COMPLAINT
MRF-SAVARI
33%
APOLLO-LOADSTAR SUPER
22%
JK-JUMBO ACE22%
CEAT-MILAZE22%
SCV BIAS
APOLLO-DURAMILE
44%JK-STEEL
KING33%
MRF-STEEL MUSCLE
22%
SCV RADIAL
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISO.T.R (FARM)
PRODUCT COMPLAINT;
70%
NO COM-PLAINTS; 30%
TYPE OF COMPLAINT
APOLLO-KR-ISHAK PRE-
MIUM CR; 30%
MRF-SHAKTI LIFE; 20%
GOODYEAR- VAJRA SU-PER; 40%
CEAT-SAMRAAT; 10%
TRACTOR FRONT
APOLLO-KRISHAK PREMIUM
30%
MRF-SHAKTI SUPER30%
GOODYEAR- VAJRA SUPER
30%
BIRLA-SHAAN10%
TRACTOR REAR
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISO.T.R (INDUSTRIAL VEHICLE)
CEAT-FM SUPER33%
JK-VEM AS33%
APOLLO-DHRUV 33%
INDUSTRIAL VEHICLE FRONT
APOLLO-XTRAX IT41633%
MRF-MUSCLEROK67%
INDUSTRIAL VEHICLE REAR
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISPASSENGER CAR
NO COMPLAINTS100%
TYPE OF COMPLAINTS (FOR A2)
NO COM-
PLAINTS80%
PRODUCT COMPLAINT
20%
TYPE OF COMPLAINTS (FOR A3)
NO COM-
PLAINTS60%
PRODUCT COM-PLAINT
40%
TYPE OF COMPLAINTS (FOR B2)
NO COM-
PLAINTS60%
PRODUCT COM-PLAINT
40%
TYPE OF COMPLAINTS (FOR B3)
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISPASSENGER CAR
MRF-ZVTS; 40%
BRIDGE-STONE-B290;
40%
APOLLO-AMAZER 3G; 20%
SEGMENT A2
BRIDGESTONE-TURANZA ER 60
20%
MRF-ZVTS40%APOLLO-AMAZER 3G
20%
JK-ULTIMA20%
SEGMENT A3
BRIDGESTONE-DUELER D689
25%
JK-BRUTE13%
CEAT-RHINO13%
APOLLO-AMAZER XL
25%
MRF-ZQT25%
SEGMENT B2
BRIDGESTONE-DUELER D689
40%
APOLLO-AMAZER XL20%
MRF-ZQT40%
SEGMENT B3
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Q1 Does the amount of kilometres run during a month has any correlation with payload?• H0 : Amount of kilometres run during a month is independent of payload
• HA : H0 is false
There is a strong correlation between the kilometres travelled and payload carried and is significant at 0.006. Therefore we reject H0
Correlations
kilometres payload
kilometres Pearson Correlation 1 .588**
Sig. (2-tailed) .006
N 20 20
payload Pearson Correlation .588** 1
Sig. (2-tailed) .006
N 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Model Summary
Model
R
R
Square
Adjusted R
Square
Std. Error of
the
Estimate
d
i
m
e
n
s
i
o
n
0
1 .588a .346 .310 1463.984
a. Predictors: (Constant), payload
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
REGRESSION EQN = 5704.760 + (51.440)*Payload
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regressi
on
2.042E7 1 2.042E
7
9.528 .006a
Residual 3.858E7 18 214325
0.379
Total 5.900E7 19
a. Predictors: (Constant), payload
b. Dependent Variable: kilometres
Regression analysis is significant at 0.006 and no model is
excluded.
R square value is closer to zero.
Coefficientsa
Model
Unstandardized
Coefficients
Standar
dized
Coeffici
ents
t Sig.B
Std.
Error Beta
1 (Const
ant)
5704.7
60
667.388 8.54
8
.000
payloa
d
51.440 16.664 .588 3.08
7
.006
a. Dependent Variable: kilometers
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Q2 Does the payload has any correlation with the time after which tyres are being changed?• H0 : Time after which tyres are being changed is independent of payload
• HA : H0 is false
From the table of correlation it can be analysed that payload and time have a very strong correlation at 0.641 and is significant at 0.002Therefore we reject H0
Correlations
payload time
payload Pearson
Correlation
1 .641**
Sig. (2-
tailed)
.002
N 20 20
time Pearson
Correlation
.641** 1
Sig. (2-
tailed)
.002
N 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Model Summary
Model
R
R
Square
Adjusted R
Square
Std. Error of
the Estimate
d
i
m
e
n
s
i
o
n
0
1 .641a .411 .378 1.959
a. Predictors: (Constant), payload
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
REGRESSION EQUATION = 9.556+ (0.79)*payload
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regressi
on
48.118 1 48.118 12.53
8
.002a
Residual 69.082 18 3.838
Total 117.200 19
a. Predictors: (Constant), payload
b. Dependent Variable: time
Coefficientsa
Model
Unstandardized
Coefficients
Standar
dized
Coeffici
ents
t Sig.B
Std.
Error Beta
1 (Const
ant)
9.556 .893 10.7
00
.000
payloa
d
.079 .022 -.641 -
3.54
1
.002
a. Dependent Variable: time
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
• Q3 Does the amount of kilometres run effect the time after which tyre has been changed?• H0 : Time after tyre has been changed is independent of amount of kilometres run• HA : H0 is false
There is strong correlation between Time after which tyres are changed and kilometres travelled at 0.842 and is significant at 0.000.Therefore we reject H0
Correlations
time kilometres
time Pearson Correlation 1 .842**
Sig. (2-tailed) .000
N 20 20
kilometres Pearson Correlation .842** 1
Sig. (2-tailed) .000
N 20 20
**. Correlation is significant at the 0.01 level (2-tailed).
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Model Summary
Model
R
R
Square
Adjusted R
Square
Std. Error of
the
Estimate
d
i
m
e
n
s
i
o
n
0
1 .842a .709 .692 1.377
a. Predictors: (Constant), kilometers
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
REGRESSION EQUATION = 15.698+(-.001)*kilometres
Coefficientsa
Model
Unstandardized
Coefficients
Standardi
zed
Coefficie
nts
t Sig.B Std. Error Beta
1 (Consta
nt)
15.698 1.380 11.37
8
.000
kilometr
es
-.001 .000 -.842 -
6.616
.000
a. Dependent Variable: time
ANOVAb
Model Sum of
Squares df
Mean
Square F Sig.
1 Regressi
on
83.051 1 83.051 43.77
6
.000a
Residual 34.149 18 1.897
Total 117.200 19
a. Predictors: (Constant), kilometers
b. Dependent Variable: time
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
Q4 Does number of complaints have effect on the company preference of APOLLO?• H0 : Company preference of Apollo is independent of number of complaints
• HA : H0 is false
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Exact Sig. (2-
sided)
Exact Sig. (1-
sided)
Pearson Chi-Square 1.579a 1 .209
Continuity Correctionb .044 1 .834
Likelihood Ratio 1.912 1 .167
Fisher's Exact Test .400 .400
Linear-by-Linear
Association
1.500 1 .221
N of Valid Cases 20
a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .40.
b. Computed only for a 2x2 table
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER ANALYSISUSING SPSS
From the above value of Chi square test where significance> 0.05 hence it is insignificantHence we reject H0
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Phi .281 .209
Cramer's V .281 .209
Contingency Coefficient .271 .209
N of Valid Cases 20
NAMAN SHARMA - B.I.M.M PUNE
PERCEPTUAL MAP USING DISCRIMINANT ANALYSIS
-4 -3 -2 -1 0 1 2 3
-4
-3
-2
-1
0
1
2
BIRLA
CONTINENTAL
MICHELIN
BRIDGESTONE
GOODYEARCEAT
JK
MRF
APOLLO
price
performance
NAMAN SHARMA - B.I.M.M PUNE
COMPANY’S POLICY AND PROMOTIONAL SCHEME
NAMAN SHARMA - B.I.M.M PUNE
COMPANYPOLICY
APOLLO MRF JK CEAT BIRLA GOODYEAR MICHELIN BRDIGESTONE CONTINENTAL
INTEREST ON DEPOSIT (YEARLY)
MINIMUM ROTATION REQUIRED PER MONTH ON WHICH INCENTIVES ARE ALLOWED
MINIMUM ROTATION REQUIRED PER QUATER ON WHICH INCENTIVES ARE ALLOWED
MAXIMUM ROTATION ALLOWED PER MONTH
MAXIMUM ROTATION ALLOWED/QUARTER
CREDIT PERIOD (MINIMUM)
CREDIT PERIOD (MAXIMUM)
ROTATION SURPRISE/INCENTIVE
TOD/QTD
PPD
TD
COLLECTION DISCOUNT
ANNUAL INCENTIVE
OTHER SPECIAL DISCOUNTS/OFFERS
NAMAN SHARMA - B.I.M.M PUNE
CUSTOMER SCHEMESHCV BIAS segment
HCV RADIAL segment
LCV BIAS segment
LCV RADIAL segment
SCV BIAS segment
SCV RADIAL segment
FARM segment
PCR segment
COMPANYPOLICY
APOLLO MRF JK CEAT BIRLA GOODYEAR MICHELIN BRDIGESTONE CONTINENTAL
NAMAN SHARMA - B.I.M.M PUNE
COMPANY’S POLICY AND PROMOTIONAL SCHEME
• Highest discount/interest giver – JK tyres• Highest incentive giver (Both to dealer and
Customer) – Michelin• Most lenient policy structure – Continental• Most effective Policy structure – MRF• Lowest discount/interest giver - MRF
NAMAN SHARMA - B.I.M.M PUNE
CONCLUSIONS
Factors which are affecting growth of company in rural and semi urban market are:-
• High number of dealers are unsatisfied from Apollo (for reasons please refer to dealer survey section)
• Decreasing customer satisfaction and their increasing switching rate (for reasons please refer to customer survey section)
• Bad company policies regarding products• Extremely high costs than competitors• Less promotional schemes and marketing
NAMAN SHARMA - B.I.M.M PUNE
CONCLUSIONSPRODUCT
MARKET SHARE
LOW HIGH
LIFE TIMENEW ASPIRE 4G
AMAZER 4GSPORTRACSULTRAC CEUTOULTRAC SESSANTAXT-9XT-9 PLUSXT-9 GOLDENDURANCE RAENDURACE RDPOWERHAUL
ALNAC 4GAPTERRAMILESTARLOADSTAR SUPERLOADSTAR SUPER GOLDKRISHAK SUPERXT-100KXMR
OLDASPIREACLERE MAXXAMAZER 3G MAXXQUANTUMAMARAMAR AT RIBCARGO TUFCARGO SLXT-7 HAULUGRANCERLUG MILLERENDURANCE MDENDURANCE CDFARM KINGXTRAX RC317XTRAX E3
AMAZER 3GAMAZER XLACELEREAMAR DLXAMAR GOLDCARGO MILLERCHAMPION GOLDXT-7XT-7 GOLDDURAMILEENDURANCE LDENDURANCE MA 326KRISHAK PREMIUMKRISHAK GOLDXTRAX IT 426DHRUV
NAMAN SHARMA - B.I.M.M PUNE
CONCLUSIONSPRODUCT
GROWTH RATE
LOW HIGH
LIFE TIMENEW ASPIRE 4G
XT-9XT-9 PLUSENDURACE RD
AMAZER 4GSPORTRACSULTRAC CEUTOULTRAC SESSANTAXT-9 GOLDENDURANCE RAPOWERHAUL
NAMAN SHARMA - B.I.M.M PUNE
RECOMMENDATIONSTo increase market share in rural and semi urban areas following steps are recommended
For Dealers• Do not increase the number of dealers , focus on current dealers and try growing them as this will not
only reduce interdealer rivalry but also increase dealer’s revenue which will turn them in company’s favour
• Make 1 country 1 price policy so that the price difference in various zones is abolished.• Make better RAS and rotation policy and inform the dealer about policies in advance.• Make tyre availability at company’s district office easy and on time specially during high demand season
of summer.
For Customers• Make claim passing as easy as possible and give claims on other than manufacturing defects also• Make tyre replacement possible at every district office and the customer should not be asked to go back
to the District office from where he purchased tyres.• Give additional benefits to Apollo Brand Loyal bulk buyers
For Products• Discontinue loss making products listed under slow growth and low market share segment• Increase tyre NSD for farm tyres• Focus largely on product having high market share.
For Market• Apollo is market leader in HCV ,LCV and SCV Radial protect that.• Apollo is market follower in HCV , LCV and SCV Bias increase that• Focus on Passenger car and Farm segment as growth rate is higher
NAMAN SHARMA - B.I.M.M PUNE
KEY LEARNINGS
• Knowhow of tyre as an industry and Apollo as a company
• Conducting a methodological research and finding conclusions
• Dealer and customer interaction ways and there issues.
• Insight into Rural Market.