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Presented by:Gourab SanyalJaskaran SinghSnigdha PatraSweta JhunjhunwalaVishal SinghIndian Tyre Industry

Agenda

Overview of Indian Tyre Industry Segmentation of the Industry Prominent B2C and B2B Brands Ways of Segmentation and their Prominent Brands Segmentation in B2B B2B Buying Behaviour Marketing Mix SWOT Analysis of MRF Tyres Recommendations

Overview of Indian Tyre IndustrySource- Annual Reports of the companiesSegmentation of the IndustrySource- Automotive Tyre Manufacturers Association (ATMA) B2B = OEMs + 49% of Exports = 49%B2C = Replacement Market + 51% of Exports = 51%Prominent B2C and B2B brandsSource: Annual Reports of the companies and Dealers and DistributorsB2CBT 112SUPER MAX

B2BHCLSUPER LUGXT7B2CZAPPERNYLO GRIPTERMINATOR

B2BTERMINATORWANDERERZIGMAB2CACELEREAMAZERUX1ZVTVB2BACELEREULTIMA NXTZECMCWGHMVLMVWays of SegmentationSource: Official websites of TyresTypesOverall IndustryCommercial vehicles and buses(73%)Passenger vehicles tyres(23%)Others(4%)MHCV(55%)LCV(8%)Tractor(10%)Cars/MUVS(11%)Two-wheelers(12%)Source: Official websites of TyresProminent BrandsTypes

`MHCV:MRF: WANDERER, ZV2KCEAT: MILAZE, RHINOLCV:APOLLO:ACELERE, AMAZERJK TYRES: ULTIMA NXT, UXIPASSENGER CAR:JK TYRES: ULTIMA XP, TORNADOMRF TYRES: SUPER MAX, SUPER LUG REVZTWO-WHEELERS:MRF TYRES: ZAPPER, NYLOGRIPTVS TYRES: TERMINATORTRACTOR:MRF: SHAKTI SUPER, MITAS: MITAS RD 02JK TYRES: JK SONASource: Official websites of TyresPricingHIGHRs.16000-Rs.22000MEDIUMRs.10000-Rs.16000LOWRs.10000 BELOWSource: Official websites of TyresProminent BrandsHIGHCEAT: ANMOL, CZARMRF TYRES: Z SERIES, WANDERERAPOLLO: ASPIREMEDIUMBF GOODRICH: ACTIVAN, G-FORCE PROFILERFORT CONTACTKLEBER: HYDRAXER, VIAXERLOWBIRLA TYRES: BT 112, BT ULTRACONTINENTAL: CONTI CROSS CONTACT, CONTI COMFORT CONTACTTVS TYRES: BADSHAH, LUGSource: Official websites of TyresPricingUsageTouring TyresSports TyresEconomy Tyres

Source: Official websites of TyresECONOMY TYRESMRF TYRES: SUPER LUG REVZTVS TYRES: LUGBIRLA TYRES: BT 112, BT ULTRATOURING TYRESCONTINENTAL: CONTINENTAL PURE CONTACT, CONTINENTAL PREMIUM CONTACTGOODYEAR: GOODYEAR EXCELLENCE & GOODYEAR DURAGRIPSPORTS TYRESMICHELIN: MICHELIN LATITUDE SPORT & MICHELIN DIAMARISSource: Official websites of TyresProminent BrandsUsageBenefitsPerformance TyresMud TyresAll Terrain TyresSnow and Mud TyresAll Season TyresSource: Official websites of TyresPerformance TyresMRF TYRES:ZSERIES, WANDERERCONTINENTAL:CONTIFORCE CONTACT, SPORT CONTACTAll- terrain tyresCEAT: MILAZE, RHINOMICHELIN: MICHELIN CROSS TERRAINSnow and Mud tyresGOODYEAR: GOODYEAR ULTRAGRIP 8 PERFORMANCE, GOODYEAR ULTRAGRIP 7 PLUSCEAT: CEAT ARTIC 3, CEAT FORMULA WINTERMud tyresMRF: SHAKTI SUPER MITAS: MITAS RD 02JK TYRES: JK SONAAll Season TyresBRIDGESTONE: ECOPIA EP422, TURANZA SERENITY PLUSCONTINENTAL: ECO CONTACT, PRO CONTACTSource: Official websites of TyresProminent BrandsBenefitsCategorySegment-wise Percentage supply (as % of Total Production)B2CB2BTruck/Bus8020Passenger Car/ Jeep5545LCV5446Tractor Front5941Tractor Rear3862Scooter / Moped4060Motor Cycle4159Segmentation in B2BSource- Automotive Tyre Manufacturers Association (ATMA) B2B Buying Behaviour Purchase decisions are performance based and rationale

Technical Expertise

Price

Source: Expert Interview

MRF Tyres- Tyres with musclesProductMRF TYRESNYLO GRIPSUPER MAXZAPPERAPOLLO TYRESACELEREAMAZERASPIRECEATHCLMILAZERHINOJK TYRESULTIMA NXTUX1ELANZO NXTMarketing MixSource: Official websites of TyresPriceSource: Official websites of TyresPromotionMRF TYRESAPOLLO TYRESCEATJK TYRESTAGLINETyres with musclesGo The DistanceBorn ToughThe tyre that never tiresADVERTISING STRATEGYAds at Petrol Pump, Car and Bike ShowroomsCampaigns attracting youthFocus on youth through seminars and campaignsAds by multimedia and printsBRAND AMBASSADORGautam GambhirMahesh Bhupati &Radek StepanekIrfan KhanArmaan EbrahimSource: Official websites of TyresTie-ups of MRF Tyres with MarutiMahindra and MahindraTATA MotorsGeneral Motors

Tie-ups of CEAT Tyres withTATA MotorsMahindra and MahindraL&THero Honda

Tie-upsTie-ups of APOLLO Tyres withAudiFiatGMHyundai

Source: Official websites of TyresPositioning for B2B InstitutionsProduct HCV & LCV tyres. Passenger Cars & 2-wheelers tyres.PromotionMRF promotes its tyres as tough,reliable and high endurance for Truck & Bus manufacturers.It promotes its tyres for passenger cars and 2-wheelers as high quality and high performance tyre manufacturer.MRF uses pull marketing strategy for its dealers.PriceList price for standard products.Competitive Bidding and Negotiated Prices.

Source: Expert InterviewImproved capacity utilization and overall cost efficiency.Reliability and Durability.Product Innovation.Customer focus.Strong distribution network.High importance to R&D and conservation of energy.Volatility of prices of rubber and crude oil.Steep inflow of inferior Chinese tyres.Low liquidity and high interest costs.Volatility in industrial relation.Rising Rubber Price.Existing and potential growth of automobile industry.Governments focus on development and infrastructure.Reduction in interest of loans.Change in the tyre patterns of commercial vehicles from bias to radial patterns.STRENGTHSWEAKNESSOPPORTUNITIESTHREATSSWOT Analysis of MRF Tyres Source: Expert InterviewRecommendations Focusing on increase in production at par with the growing automobile industry Increasing acquisitions and accelerating its franchise programs worldwide Tackling competition from the Chinese market through dealer push Spending more on advertisement and promotion through safety videos Enabling huge investment in R & D Introduction of new variants like cycle tyres

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