Group 2 (Section B) Asima Dash (9067) V.Ganesh (9075) Pragna Kolar (9092) Rohan Koshie (9099) Sriprasanna.

M (9111)

Expected to grow at 6.81% FY2010 T&B (Truck & Bus) is the largest tyre category LCV and two-wheelers grew at 13.34% and12.27% from FY03-08 Car tyres grew at 13.98% from FY03-08 Tonnage growth was 2.19% against 7.38% for the previous year Radialisation in passenger car segment 97% Industry has capex plans for radialisation, no more capacity expansion for bias tyres Industry banking on OTR (off the road) tyres adding capacity in this segment Tyre industry expected to grow at CAGR 6.5% in the next 5 yrs in tonnage terms to reach Rs. 300 bn

 Started

in 1946 as Madras Rubber Factory, MRF started off by manufacturing rubber products Ltd entered the tyre business in 1960

MRF

Today,

MRF is a leading tyre manufacturer of India exporting to more than 60 countries worldwide
cricketing talent through MRF Pace Foundation, Chennai

Nurtures

STP

Segmentation

3 broad segments (market type): OEM, Replacement and Export Sub segments:
Truck /Bus, Light Commercial, Jeep & Utility Vehicle, Passenger Car, OTR, Two wheelers,Farm Service Tyres

Targeting

Targets all sub-segments with various variants. 13 variants for Passenger cars

Positioning

MRF muscle man

Marketing Mix
Product

The various tyres for passenger cars are ZVTS,ZVT,ZQT,ZV2K,ZV2K and Wanderer

Price

SANTRO-ZVTS TT Rs.2058 INDICA- ZVTS TL Rs.2247 MARUTI-800 ZIGMA Rs.1526

Marketing Mix(Contd..) Promotion

Sponsor motor sports in India

Brand ambassadors

Sachin Tendulkar Brian Lara

Place

2500 outlets across India Exports to 65 countries

SWOT Analysis

Strengths

Improved capacity utilization and overall cost efficiency Reliability and Durability (Mileage) Product innovation Customer focus Strong distribution network High importance to R&D and conservation of energy

Weaknesses

Volatility in industrial relations. Ex: the recent labour unrest in Puducherry

SWOT Analysis (Contd.)

Opportunities

Existing & potential growth of automobile industry Governments focus on development of infrastructure Potential change in the tyre patterns of commercial vehicles from bias to radial patterns Reduction in interest of loans

Threats

Volatility of prices of rubber & crude oil Steep inflow of inferior Chinese tyres Low liquidity and high interest costs

Analysis using Ansoffs Model

Market Penetration
Attract

Product Development
Product Line Extension Helicopter, motorcycle & farm vehicle tyres Product reformulation Wanderer- cut- resistant tyre compounds
New

users of Competitors Products

Competitive Advantage (durability, reliability, proven track record)

Product Development

ZSLK- Eco friendly, tubeless tyre Product Quality Improvement ZV2K premium tyre- Long term even tread wear

Analysis using Ansoffs Model (Contd.)

Market Development
Target New Segment OEM tie ups with car manufacturers (Hyundai , Ford, Tata Motors)
Expand

Diversification
Unrelated Industry Producing and partnering with other companies in unrelated industries like toys, paints and bats
Related

Geographically Industry
Producing conveyor belts, pre treads harnessing

Exports to 65 countries such as Bangladesh, Vietnam ,South Africa

Integrative Growth Forward Integration- Exclusive company outlets across the world

Competitors
JK Apollo Bridgestone Goodyear Ceat

Passenger Car Tyre market

24%

20%

JK Apollo Bridgestone

4%

15%

Goodyear Ceat MRF

13%
20%

Competitors Analysis
J K Tyres

17th largest tyre manufacturer in the world & virtually covers the entire OEM market in India. Worlds 1st tyre company to receive ISO 9001 certification(1995) &QS 9000 certification(1998) for multi

location operations

Apollo Tyres

Produces the entire range of automotive tyres for ultra and high speed passenger cars, truck and bus, farm, OTR, industrial and specialty applications like mining, retreaded tyres and retreading material

Competitors Analysis Contd

160 140 120 100 80 60 40 20 0 JK MRF Apollo Tyres Tyres Net Profit in Rs cr (sep 2008)
6000

5000 4000
3000 2000

Sales Turnover in Rs cr (sep 2008)

1000 0 JK TyresMRF Apollo Tyres

Recommendations

More penetration & increase in market share in the OEM tyre segment to overtake JK tyres and become the market leader in the OEM segment

Creating awareness among Indian consumers about the inferior quality cheap Chinese tyres so that demand of imported tyres reduces

Development of tyres for commercial aircraft Backward integration and manufacturing rubber as is done by Bridgestone tyres

Getting into Tyre recycling