SUMMER TRAINING
ASUMMER
TRAINING REPORTONTo Study Market Share of Apollo Tyres for
Passenger Car in Radial Tyres Segment at Varanasi area
Project Report Submitted Towards Partial Fulfillment of Master
of Business Administration Degree
(Affiliated to UPTU Lucknow) (2008-10) Submitted to:
Submitted by:
Neha Kattiyar
Sanjay Jaiswal
MBA-3rd Sem
Roll No-1313370111Noida Institute of Engeneering and
technology
Greater Noida
DECLARATION
I, Sanjay Kumar Jaiswal, a student of BBS Institute of
Management Studies, Knowledge Park-III, Greater Noida, hereby
declare that this project is the record of authentic work carried
out by me during the academic year 2013-2015and has not been
submitted to any other university or Institute towards the award of
any degree.
An attempt has been made by me to provide all relevant and
important details regarding the topic to support the theoretical
edifice with concrete research evidence. This will be helpful to
clean the fog surrounding the various aspect of the topic.
I hope that this project will be beneficial for the
Organization.
Sanjay Kumar JaiswalMBA IIIrd Sem.
Roll No.:-1313370111ACKNOWLEDGEMENT
At the successful completion of my summer training at APOLLO
TYRES LIMITED at VARANASI . We would like to express our gratitude
and thanks to Mr. Shashank Sharma and all the staff members of
APOLLO TYRES LIMITED at VARANASI, for the guidance , support and
help, without which the completions of this project was not
possible.
Equally, we are also grateful to Asst. Prof. Mr. Harsh Awasthi
(summer internship project report coordinator, M.B.A. Programme
NIET), for his valuable guidance and support. I would also like to
take this opportunity to express my gratitude to all our M.B.A.
teachers, who were the source of inspiration and motivation all
through the program.
Finally, we would also like to take this opportunity to express
my gratitude to all the members of Apollo Tyres Ltd. and faculty
members of NIET ( Greater Noida) for sharing their helpful ideas
during this project .
(SANJAY JAISWAL)
MBA-III Sem.Roll No-1313370111TABLE OF CONTENTS
1. INTRODUCTION
-10
a) About Topic
-11-12b) About Company
-13-15
2.SCOPE
-16
3.OBJECTIVE
-174.HISTORY OF APOLLO TYRES
-18-19
a) At a Glance
-20-21b) We Believe (vision & mission)
-22-23c) Globle Presence
-24d) Operation
-25-28e) Executive Officer
-29-30f) Contact us
-315.EXECUTIVE SUMMARY
-32
a) Introduction
-33
b) About Tyres Industries
-34
c) Growth of Tyres Industries
-35
d) Various Types of Tyres Segement
-35-39
6.MARKETING STRATEGY
-40-41
a) Marketing mix
-42-44b) Product profile
-45-49c) Goles of Apollo tyres in environment
- 50d) Tyres safety
-51-52e) Basic function of tyres
-53f) Golden rules for tyres selection
-547.RESEARCH DESIGN
-55-57a) Method of data collection
-58b) Collection of data through observation-598.DATA
ANALYSIS
-60-759.SWOT ANALYSIS
-7610.CONCLUSION
-77-7811.RECOMMENDATION
-79-80
12.LIMITATIONS
-81-82
13.BIBLIOGRAPHY
-83
Annexure
-84
Questionnaire
-85-87List of tables and graphs
Introduction
ABOUT TOPIC
In todays world of intense competition and rapid dynamism, all
the companies worldwide are tuning their focuses on the customer.
Suddenly, the customer had succeeded in capturing all the attention
of the companies towards him, so much so, that the once famous
maxim, customer is the god has become so true and relevant today.
There has been a paradigm shift in the thinking of these companies
and none other than the customer has brought this about.
Earlier there was a sellers market, since goods and services
were in short supply and the sellers use to call the shots. But,
ever since the advent of the era of globalization, there has been
total transformation in the way the customers being perceived.
Today, marketers are directing their efforts in retaining the
customers and customers base. Their focus has shifted towards
integrating the three elements people, service and marketing.
The customers importance has assumed imponderable proportions in
todays world, because of the inherent value that the customers
command. A customers can make or break a company. It is the
responsibility of every company to see that all its customers are
equally satisfied with them, for one single dissatisfied customer
will tell at least nine others about the dissatisfaction and will
spark off a chain reaction and spell doom for that company. In such
scenario, retention of the existing customers assumes diabolical
proportion. Research has thrown light on some important aspects of
customers retention it has been proved empirically that acquiring
new customers can cost five times more than the cost involved in
satisfying and retaining current customers.
In the past, the customers was taken for a ride, as there were
not many players in the fields, not much importance was attached to
product safety, quality, service and product appeal. The attitude
of the manufacture was that of caveat emptor. Thanks to the
government policies on liberalization, globalization and
privatization (LPG), the market scenario has changed today. Today,
the customer has a host of defense mechanism like the customers
protection laws, regulation of the government, the powerful hands
of the organization, customers courts, switching to substitute or
competitors that offer at competitive prices, etc. The maxim,
caveat emptor has been replaced by caveat venditor.
In the past, after sales service was consider as a cost center,
Companies were lethargic in attending to customers complaints.
Availability of trainee service personal and quality genuine spare
parts posed serious problems. However, with the rising competition,
there could not be much product differentiation, as price and
quality were comparable and latest technology was to each and every
company in the field. Since, there could not be much differential a
tangible assets, the companies concentrated on the intangible
assets, namely the service factor, which served as a major
differentiator. Today after sales service is an important aspect of
every company, and it is no more considered as a cost center, but
considered as a profit center. Every organization strives hard to
retain its existing customers at any cost since it is five times
costly to get a new customers, then to retain an existing
customers. Most of the industries today use of information
technology to best services to their customers.
OBJECTIVE
To understand the consumer behavior and perception about Apollo
Tyres. To assess the relative competitive position of Apollo tyres
in the minds of the consumer and dealers. To determine the market
share of Apollo tyres in Varanasi. To compare the performance of
major market player with respect to their 4 Ps.
To determine the positioning strategy.
Scope
The scope of the study has been limited to a few tyres
manufacturing majors. It does not extend to all the segments
available in the market.
Only Varanasi district has been covered in this study. Any
development in the tyres market after July 2009 is beyond the scope
of this study.
LIMITATIONS
1. Survey represent only Apollo market position: - Because this
survey is conducted in Varanasi. So we cannot imagine through it
nation level market position of Apollo tyre.
2. Non respondent: - In this survey many respondent are included
which give no idea according our survey objective.
3. Sample size is limited: - In this survey I take only 400
units as sample size. The conclusion is found out through this
sample size. So it not represents all market.
4. Time is limited: - This survey is done within 6 to 7 week, so
it may be possible that some aspect may be left.
5. Wrong information: - In this survey we cannot say that every
information correct because many respondents gives wrong
information it may more positive or negative.
6. Financial problem: - Money play very important role in any
work in this survey there is also effect of finance because I have
limited financ
EXECUTIVE
SUMMARY
a.
IntroductionThe project work has been done for seven weeks in
APOLLO TYRES LIMITED which is one of the high profile Company among
the corporate world.
I have worked under the guidance of District manager his
responsibilities was to survey of Apollo tyres in Varanasi.This
project has been a great learning experience for me; at the same
time it gave me enough scope to implement my analytical ability. I
learned at APOLLO TYRES LIMITED. One can have a brief knowledge
about To Study Market Share of Apollo Tyres for Passenger Car
Radial Tyres Segment in Varanasi area all its basics through the
project. Other than that the real servings come when one moves
ahead. Some of the most interesting questions regarding these
topics have been covered.
I would like to give thanks to all employees of Apollo, who
always helps me and provide me data where ever required.
Suggestions are always welcome.
B.
About Tyre Industries Background
The origin of the Indian Tyre Industry dates back to 1975 when
Apollo Tyres Limited set up the first tyre company in Kerala. MRF
followed suit in 1946. Since then, the Indian tyre industry has
grown rapidly.
Transportation industry and tyre industry go hand in hand as the
two are interdependent. Transportation industry has experienced 10%
growth rate year after year with an absolute level of 870 billion
ton freight. With an extensive road network of 3.2 million km, road
accounts for over 85% of all freight movement in India.
Key Issues of tyre industriesHigh tax usageThe high tax content
on tyres can be gauged from the fact that the percentage of total
tax to the tax excluded price for various categories of tyres is -
44% for Truck Tyre, 41% for passenger car Radial Tyres 35%.
Review of PerformanceOverall Performance
The operating margin of the representative sample of tyre
companies improved during FY2008. However, the net profit margin of
the tyre companies even though improved, was still at 3%.
Performance in FY2007
The tyre industry continues to be driven by good demand growth,
propelled by sustained uptrend in demand and sales of automobiles
in general, and commercial vehicles and passenger cars in
particular. However, this does not get translated into improved
margins for the industry, as it is witnessing sustained rise in
prices of raw materials like natural rubber. Additionally, the
customs duty on imports has been brought down from 25% to 20% and
Special Additional Duty of 4% has been dispensed with.
.
C.
Growth of Tyre industries in IndiaThe Indian tyre industry is
expected to clock a tonnage growth of 9-10 per cent over the next
five years, according to a study by Credit Analysis and Research
Limited (CARE), a noted rating firm that offers a wide range of
rating and grading services across sectors.
While the truck and buses tyres are set to register a CAGR
(compounded annual growth rate) of 8 per cent, the LCV (light
Commercial vehicles) tyres are poised for a CAGR of 14 per
cent.
According to the CARE study, the growth in the Indian tyre
industry will be fuelled by the expansion plans of the automobile
companies, government's focus on development of road infrastructure
and sourcing of auto parts by the global Original Equipment
Manufacturers (OEMs).
D.
Various types of Tyre segmentTyres by TypeThe Indian tyre
industry produces the complete range of tyres required by the
Indian automotive industry, except for aero tyres and some
specialised tyres. Domestic manufacturers produce tyres for trucks,
buses, passenger cars, jeeps, light trucks, tractors (front, rear
and trailer), and off-the-road vehicles and special defence
vehicles.
The scenario in India stands in sharp contrast to that in the
world tyre market, where car tyres (including light trucks) have
the major share (88%) by volume followed by truck Tyres(12%). In
India, however, passenger car tyres have a mere 17% share of the
overall tyre market.
Truck and Bus TyresThe truck and bus tyre segment accounted for
19% of tyres produced in India in FY2008. Every truck/bus
manufactured generates a demand for seven tyres (six regular and
one spare) as against three in the case of two-wheelers and five
for passenger cars. In addition, the price of a truck tyre is
significantly higher than that of a passenger car tyre (roughly 10
times) or a motorcycle tyre. Thus the demand multiple emanating
from the commercial vehicle segment is highest in value terms.
Given the regular use and heavy wear and tear of truck and bus
tyres, the demand from the replacement market in this segment
worked out to 68% of the total demand for truck and bus tyres in
FY2008, the OEM demand accounted for around 9% the same year. With
the Indian manufactu -rers of cross-ply tyres focusing on the
export market, this segment accounts for around 22% of the demand
for truck and bus tyres.
Passenger Car Tyres
The passenger car tyre segment accounted for 17% of all tyres
produced in India in FY2008. With passenger car production
witnessing a growth of 12% in FY2008 over the previous year, OEM
demand accounted for about 33% of the total sales that year. The
replacement market accounted for around 63% of the total sales of
passenger car tyres in FY2008. Exports accounted for 4% of the
total passenger car tyre demand in FY2008. With the stock of cars
increasing, replacement demand is likely to continue.
Tyre Demand by Markets
Vehicle Manufacturers or OEMsThe demand from the OEM segment is
a derived one and directly correlated to the level of automotive
production. The OEMs demand varies significantly across categories
from between 8% for truck and bus tyres to over 50% for some other
segments like, PCR.
Replacement MarketThe replacement market, including State
transport undertakings and Government buying, accounted for around
59% of the total tyre demand in FY2008. The demand in the
replacement market depends on the vehicle population, the level of
economic activity, life of the products transported, kilometreage
per vehicle, the price of the tyres and the quality of the existing
road infrastructure. Additionally, the replacement market, which
offers better margins, is extremely competitive. The replacement
market is dominated by the PCR segment, which accounted for 22% of
all tyre sales in the replacement market in FY2008.The large size
of the replacement in turn is determined by the interplay of
various factors as discussed below:
The replacement demand may be lower because of longer
replacement intervals and lower business mileage if the economic
activity slows down. Replacement demand in India is higher because
of a low vehicle scrap page rate. Poor road conditions by lowering
the life of tyres, have a positive impact on replacement
demand.
Stricter enforcement of the MV Act, which seeks to prevent
overloading of vehicles, will result in an increase in the life of
tyres and thus impact replacement demand negatively.
Applying a new tread or "re-treading" can extend the life of the
tyre at a significantly lower cost, thereby lowering replacement
demand. In India, re-treading finds greater acceptance in the
commercial segment.
Radicalization of tyres is likely to result in lower replacement
demand. While car radicalization in the country has reached a level
of 65%, truck and bus radicalization stands at just 2-10%. Poor
road and support infrastructure as well as traditional vehicle
designs act as a barrier to radicalization in the commercial
vehicle segment. Radial technology for trucks and buses would help
increase operating efficiencies by delivering better mileage and
minimizing wear and tear.
According to ATMA, even if only 25% of the PCR segment is
radicalized, the savings in fuel costs would be around Rs. 7,500
million.
Introduction of tubeless tyres in the passenger car segment is
also likely to affect replacement demand adversely
Introduction of eco-friendly radial tyres such as hyper-bonding
silica technology in the passenger car segment may affect
replacement demand adversely.
ExportsIn the light of the prevailing domestic market situation,
most of the tyre manufacturers have taken to exports to reduce
inventory build-ups. In FY2008, Indian tyre exports stood at Rs.
10.8 billion (10% of the total industry) in value terms and 3.1
million in unit terms (6.5% of total production). Indian companies
have currently entered into sourcing agreements (for tyres) with
neighboring countries. For instance, CEAT and J K Tyres have
sourcing agreements with tyre producers in Sri Lanka and China.
This is likely to have a positive impact on tyre exports from
India.
Market PlayersSome of the major players in the Indian tyre
industry are MRF, CEAT, JK Industries, APOLLO TYRES, BRIDGE STONE,
GOOD YEAR, and FALCON TYRES. The tyre industry in India is fairly
concentrated, with the sample of eight companies
MARKETING STRATEGY
Strategic thinking is key to the evolution of successful
marketing strategies of APOLLO TYRES. This involves the following
analyses:
(a)Understanding markets: Strategic perspective of the market
requires skilful analysis of the trend and how they affect the
market size and demand for the firms product.
(b)Finding market niches: Price, service, convenience and
technology are some of the niches in Indian market.
(c)Product and service planning: Analysis of the customers
promotion of the brand, both of the firm and competitors, besides
an analysis of the situation in which the customer uses the
product.
(i)Distribution: Structural changes in inventory management,
mobile distribution are some of the key factors that are going to
affect the distribution process in the Indian market.
(ii)Managing for result: With pressure on costs, prices, and
margins, marketers will have to make effective utilization of every
rupee spent in marketing.
Market opportunity of Apollo tyres
Identification of market opportunity is critical before the
management of affirm takes a decision to launch or diversify in any
product area. This involves analysis of the following:
Size of the market
Marketing strategies and the extent and quality of services
rendered by other firm in the industry.
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking
them to a firms strengths and weakness
Market opportunity
(a)Size of the market
(b)How well the market is served
(c)Prospective inches
(d)Marketing mix required to succeed
(e)Core competencies required
SHAPE \* MERGEFORMAT
Size of the market:Sizes of the market are....i. Demand
analysis: is the core aspect of market opportunity.
ii. Segmentation analysis: is the process of dividing the market
into homogeneous sub units.
iii. Competitor analysis: analysis of competition how well the
market is served
MARKETING MIX
A Marketing mix is the division of groups to make a particular
product, by pricing, product, branding, place, and quality.
Although some marketers[who?] have added other P's, such as
personnel and packaging, the fundamentals of marketing typically
identifies the four P's of the marketing mix as referring to:-1.
Product
2.Price
3.Promotion
4.Place
Product
A tangible object or an intangible service that is mass produced
or manufactured on a large scale with a specific volume of units.
Intangible products are often service based like the tourism
industry & the hotel industry. Typical examples of a mass
produced tangible object are the tyres. A less obvious but
ubiquitous mass produced service is a computer operating
system.
Price
The price is the amount a customer pays for the product. It is
determined by a number of factors including market share,
competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or
decrease the price of product if other stores have the same
product.
Place
Place represents the location where a product can be purchased.
It is often referred to as the distribution channel. It can include
any physical store as well as virtual stores on the Internet.
Promotion
Promotion represents all of the communications that a marketer
may use in the marketplace. Promotion has four distinct elements -
advertising, public relations, word of mouth and point of sale. A
certain amount of crossover occurs when promotion uses the four
principal elements together, which is common in film promotion.
Advertising covers any communication that is paid for, from
television and cinema commercials, radio and Internet adverts
through print media and billboards. One of the most notable means
of promotion today is the Promotional Product, as in useful items
distributed to targeted audiences with no obligation attached. This
category has grown each year for the past decade while most other
forms have suffered. It is the only form of advertising that
targets all five senses and has the recipient thanking the giver.
Public relations are where the communication is not directly paid
for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is
any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to
create word of mouth momentum. Sales staff often plays an important
role in word of mouth and Public Relations. Broadly defined,
optimizing the marketing mix is the primary responsibility of
marketing. By offering the product with the right combination of
the 4Ps marketers can improve their results and marketing
effectiveness. Making small changes in the marketing mix is
typically considered to be a tactical change. Making large changes
in any of the four Ps can be considered strategic. For example, a
large change in the price, say from $19.00 to $39.00 would be
considered a strategic change in the position of the product.
However a change of $131 to $130.99 would be considered a tactical
change, potentially related to a promotional offer.
The term "Marketing Mix" however, does not imply that the 4P
elements represent options. They are not trade-offs but are
fundamental marketing issues that always need to be addressed. They
are the fundamental actions that marketing requires whether
determined explicitly or by default
COMPANY PROFILE
ABOUT COMPANYApollo Tyres Ltd is a high-performance company and
the leading Indian tyre manufacturer with revenues of ~ US$ 1
billion. It is built around the core principles of creating
stakeholder value through reliability in its products and
dependability in its relationships. The company has four
manufacturing units in India and four in southern Africa, with a
Greenfield facility currently underway in Chennai, India. The
company has a network of over 4,000 dealerships in India, of which
over 2,500 are exclusive outlets. In South Africa, it has over 900
dealerships, of which 190 are Dunlop Zones.
CORE VALUES:
APOLLO Organization has been a forerunner in the economic and
social advancement of India. It always aimed at creating job
opportunities for a multitude of countrymen and to provide high
quality products. It has striven to make India self reliant by
pioneering the production of a number of industrial and consumer
products, by adopting the latest technology as well as developing
its own know-how. It has also undertaken industrial ventures in
several other countries.
APOLLO Organization is an association of industrial and
commercial companies and charitable trusts. Its member companies,
employing nearly 50,000 persons are engaged in the manufacture of a
variety of products and in diverse fields of commerce.Trusts are
devoted to promoting industrial, technical and medical research,
education, religious values and providing better living and
recreational facilities. With the spirit of social consciousness
uppermost in mind, APOLLO TYRES Organization is committed to the
cause of human advancement.Apollo Tyres No-1 Market Position
In what is being considered as a landmark decision in the highly
competitive Indian tyres industry, the Advertising Standards
Council of India (ASCI) has upheld Apollo Tyres Ltd's claim of
being India's No 1 tyres manufacturer in the four-wheeler tyres
segment, reaffirming APOLLO leadership position in the market.
Expressing his happiness over ASCI's judgments, Apollo Tyres
marketing director Shashank Sharma says: ''This is a fabulous
example of why all of us need to have faith in bodies like ASCI. We
believe that the process of self-regulation in Indian advertising
is working for both companies and agencies. We also hope that this
would encourage various players to bring superior technology and
consumer service standards and claim leadership in a more healthier
and competitive manner.''
The case was started when few competitors filed a complaint with
ASCI against Apollo Tyre's print advertisement, in which Apollo
Tyres announced its numero uno position in the four-wheeler tyres
segment, quoting production figures compiled by Automotive Tyres
Manufacturer Association and other authentic industry sources.
But the competitors contradicted the claim, stating the fact
that market figures from a company's annual report should be used
as authentic data to claim one's leadership, not the production
figures.
But ASCI considered the case at the Consumer Complaints Council
on 20 JUNE 2009 and upheld Apollo Tyre's contention that production
figures, as compiled by authentic industry sources and used by
Apollo Tyre to claim its leadership, is a valid and applicable
comparison platform.
Hence, Apollo Tyre's claim as No 1 tyre manufacturer in India is
a perfectly valid and correct statement. This also reflects ASCI's
agreement to Apollo Tyre's viewpoint that figures, as stated in the
one's annual report, could actually be misleading and could include
revenues from non-tyre-related businesses also.
Apollo Tyre, pioneers of radial technology in India, is today
India's largest manufacturer of tyres in the four-wheel segment,
including tyres for trucks and buses, LCVs, passenger cars, jeeps,
tractors, and OTRs. After 25 years of pioneering world-class
technologies in India, APOLLO Tyre has recently launched the
country's first eco-friendly colored tyres as well as steel-belted
tractor rear radials.HISTORY OF APOLLO TYRES COMPANYPeople deliver
innovation
Innovations deliver success
A few of the difference our people made
1975Inception
1976Registered as a company
1977First Plant commissioned in Perambra(Cochin, Kerala)
1991Second Plant commissioned in Limda (Baroda, Gujarat)
1995Acquired Premier Tyres in Kalamassery (Cochin, Kerala)
1996Exclusive Tubes Plant Commissioned in Ranjangaon (Pune,
Maharastra)
2000Exclusive Radial Capacity established in Limda
2000Established APOLLO TYRES Health Care Clinic for HIV. Aids
awareness
2003Expansion of passenger car radial capacity to 6600 tyres per
day
2004Production of Indias first H-Speed rated tubless passengers
car radial tyres
2004Support in setting up Indias first emergency medical service
in Baroda
2005APOLLO TYRES health care clinic in Udaipur in Rajasthan and
Kanpur in Uttra
Pradesh
2006Expansion of passenger car radial capacity to 10000 tyres
per day
2006Expansion of passenger car range to include 4x4 and all
terrain tyre
2006Acquired Dunlop tyres international in South Africa and
Zimbabwe
2006Opening of Apollo tyres health care clinic in Ukkadam,
Tamilnadu
2006Launch of Dura Tread, trading material and solutions
2006Launch of Indias first range of ultra high performance V and
W-speed rated
passenger car radial
2007 Launch of Regal Truck and Bus radial tyres
2007Launch of Dura tyres, retreaded tyres from Apollo
2007Launch of the Apollo Tennis Initiatinve and Mission 2018
HIHIHHHHHJJ
Apollo Tyres Ltd is a high-performance company and the leading
India tyre manufacturer. Head quartered in Gurgaon, a corporate-hub
in the National Capital Region of India, Apollo is a young,
ambitious and dynamic organisation, which takes pride in its unique
identity. Registered as a company in 1976, Apollo is built around
the core principles of creating stakeholder value through
reliability in its products and dependability in its relationships.
Apollos present strength and market dynamism steps from its early
years of strife in establishing itself as a tyre manufacturer
within the closed Indian economy. Over two decades, Apollo worked
on a portfolio of products, tuned to customer needs and an array of
innovative marketing initiatives to establish itself as a leader in
its home market. Some of these include segmenting customers by
their load and mileage requirements, running tyre loyalty
programmes, establishing customer contact programmes which resulted
in better health and driving habits, introducing Indias first farm
radials and Indias first range of high-speed tubeless passenger car
tyres. For the first time, in 2006 Apollo ventured outside India in
its quest to test itself outside its home comforts. Apollo acquired
Dunlop Tyres International Pty Ltd in South Africa (since renamed
as Apollo Tyres South Africa Pty Ltd) and Zimbabwe, taking on
southern Africa as the second domestic market. The company holds
brand rights for the Dunlop brand across 30 African countries.
In 2009, Apollo acquired Vredestein Banden B V in the
Netherlands, and thereby adding Europe as its third crucial market.
The company currently produces the entire range of automotive tyres
for ultra and high speed passenger cars, truck and bus, farm,
Off-The-Road, industrial and specialty applications like mining,
retreaded tyres and retreading material. These are produced across
Apollos eight manufacturing locations in India, Netherlands and
Southern Africa. A ninth facility is currently under construction
in southern India, and is expected to commence production towards
the end of 2009. The major brands produced across these locations
are: Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein. In the
three domestic markets of India, Southern Africa and Europe, Apollo
operates through a network of branded, exclusive or multi-product
outlets. In South Africa the branded outlets are called Dunlop
Zones, while in India they are variously named Apollo Tyre World
(for commercial vehicles) and Apollo Radial World (for passenger
cars). Exports out of these three key manufacturing locations reach
over 70 destinations across the world, with key comprising Europe,
Africa, the Middle East and South-East Asia. For Apollo Tyres,
offering the right product to the right customer is essential.
Special efforts are made to understand customer needs and segment
the market accordingly. After which, products are developed for
niche applications within a larger category to enable the company
to provide efficient, fuel and cost-saving products to each
customer segment. Innovation has always been an integral part of
the Apollo way of doing business, this applies as much to product
development and marketing as to how the company as a whole is
focused on challenging existing boundaries. An integral part of the
Apollo Tyres world is its community involvement and giving
programmes directly related to its business. In India, the focus
has always been on finding ways to ensure a direct benefits to
customer groups. For the commercial vehicle community the company
runs extensive HIV-AIDS awareness and prevention programmes and has
established Health Care Clinics across the country to cater to the
communitys health needs. For passenger car customers the focus is
on cultivating Safe Driving habits. Across its manufacturing
locations, the key initiatives revolve around health and education
programmes. Apollo is one of the largest corporate investors in
developing sporting talent through its Mission 2018, which is
focused on nurturing and training youngsters in the sport of tennis
to enable an Indian to win a Singles Grand Slan Championship by the
year 2018.
Vision
A significant player in the global tyre industry and a brand of
choice, providing customer delight and continuously enhancing
stakeholder value. Values
C - Care for customer
R - Respect for associates
E - Excellence through teamwork
A - Always learning
T - Trust mutually
E- Ethical practices
Mission:
b. Be a customer obsessed company
c. No.1 Tyre brand in Indiad. Deliver enhanced value at all
stakeholders
e. Most profitable Tyre Company in India
f. Enhance global presence through acquisition
g. Motivated and committed team development for high performance
organization
LOCATIONS AND GLOBAL PRESENCE
Global partnerships, global reputationsApollo opened its first
tyres plant in Perambra, 1977. Since then, we have grown to become
one of the worlds biggest and most respected tyres brands. Our
operations are now worldwide.
For location details, please visit our global locations
section.
Working for you
Many of the worlds leading vehicle manufacturers - including
Audi, BMW, Indica, Sumo, Toyota, Qualis - trust Apollo and fit our
tyres as standard. Our tyre designers work closely with
manufacturers. We also involve our India, South Africa and Zimbabwe
sister companies to provide the latest research and development,
testing and manufacturing facilities.
For more information on original equipment fitment
manufacturers. Wherever you are of distribution centres, we also
supply many retailers, including our retail chain, Hi-Q Tyres. Use
this section to find all the facts and information on Apollo's
heritage, policies, global presence and commitment to the
future.
India
Limda, Baroda, Gujarat In operation since 1991 Products
manufactured
Passenger car radial
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm radial & cross-ply
Perambra, Cochin, Kerala
In operation since 1977 Products manufactured
Truck and bus cross-ply
Light truck cross-ply
Farm radial & cross-ply
SOUTH AFRICA
Durban, Kwazulu NatalIn operation since 1935Products
manufactured
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm
Off-The-Road
Ladysmith, Kwazulu Natal
In operation since 1973Products manufactured
Passenger car radial
Light truck radial
ZIMBABWE
Bulawayo, MatabelelandIn operation since 1957Products
manufactured
Passenger car radial & cross-ply
Truck cross-ply
Farm
Off-The-Road
Retreading material
Harare, HarareIn operation since 1926Products manufactured
Retreaded tyres
THE NETHERLANDS
Enschede
In operation since 1946Products manufactured
Passenger car radial
Collapsible passenger car spare tyres
Agriculture tyres
Organizational structure of Apollo Tyres
Onkar S Kanwar
Neeraj R S Kanwar
Chairman
Managing Director
Satish Aggarwal
Peter Becker
Chief, Manufacturing
Chief, Research & Technology
P K Mohammed
Rob Oudshoorn
Chief, Advisor, Research
CEO, Apollo Vredestein
& Technology
Luis C Ceneviz
Tapan Mitra
CEO, Apollo Tyres
Chief, Human Resources
South Africa(Pty) Ltd
K Prabhakar
Sunam Sarkar
Chief, Projects
Director Financial Officer
Satish Sharma
Chief, India Operations
Apollo House 7 Institutional AreaSector 32, Gurgaon 122001
Haryana, IndiaT: +91 124 2721000
Apollo Tyres Ltd VI Floor, Cherupushpam Building Shanmugham Road
Kochi 682031 Kerala, India T: +91 484 2381902 to 3Products
The Apollo Tyres ltd. Is leading company for all
tyres-manufacturing company in India and The Apollo Tyres Company
manufacturing the tyres for the entire segment (TRUCK, LCV, PCR,
FARMS, OTR ).
H/V speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
V/W speed rated with superb wet and dry performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel economy
and wet performance
Rim protector
W/Y speed rated with a quick steering response
for a sporty performance
Unidirectional V-shaped tread design resists aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
S/T speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
MC 20 SH 41 SC32-SUV
SE 66 SH 19 SG 47
GOALS OF APOLLO TYRES IN ENVIRONMENT
At Apollo, we are committed to protecting and respecting the
environment. Leading vehicle manufacturers use our tyres as
original equipment because they trust and respect our quality,
development techniques and innovation. However, this alone is not
enough. We must also meet the demands of the environment by
adopting sustainable practices and using our resources more
efficiently. We practice the latest manufacturing and management
techniques and work only to the highest standards as outlined in
international standards. In practice
Here are some of our activities:
Introduction of an Environmental Management System (EMS) as part
of our integrated quality, environment, health and safety
management system .
Promotion of EMS to our customers, suppliers and contractors
.
Environmental performance targets to meet our legal, operational
and business requirements. Regular audits and reviews on our
environmental performance
Environmental awareness training for all directors and senior
management .
Appointment of environmental co-ordinators to ensure our EMS is
implemented and maintained in line with ISO 14001
Continual re-alignment of our environmental policy and business
objectives
TYRES SAFETY(TYRES MAINTENANCE YOUR MOST IMPORTANT SAFETY
ITEM)
Your tyres are the only contact between you and the road and,
like your vehicle, they too require regular maintenance.
HERE ARE A FEW TIPS
Check your tyre pressures regularly, once a fortnight is
recommended and ideally when your tyres are cold. Inspect tread and
sidewalls for cuts and abrasions, bulges, unusual wear and road
damage. If the tyres receives a severe impact, ask your tyres
retailer to check for internal damage. Do not repair cuts in
sidewalls of radial play tyres. Avoid using 'sealants' or other
liquid preparations to prevent deflation. These may cause the valve
to stick open slightly, causing pressure loss and indirectly
causing corrosion of steel belts.
Driving on under inflated tyres is almost certain to cause
serious damage, always inflate tyres to the suggested pressure.
Take action immediately to rectify any unusual sounds or
vibrations. Tyre balance and vehicle wheel alignment should be
checked regularly, (ie every 10,000km), especially if your tyres
are subjected to rough roads or aggressive driving. Tyre wear on
front wheel drive vehicles is a little higher and therefore,
attention to tyre pressures as well as rotation should be made on a
regular basis.
Tyre Pressure
Maintaining the correct pressure is the easiest, yet most
important thing you can do to get the best performance, economy and
safety from your tyres. Information relating to the correct
pressure should be available from your vehicle's tyre placard
however, considering these points may help:HERE ARE A FEW TIPS
Different driving conditions require different pressures. For
example, a higher pressure is usually recommended for high speed
driving or when carrying or towing a heavier than normal load. Seek
advice on what is the best for you and your car. Tyres pressure
should be checked when tyres are cold, as pressures will increase
when tyres warm up.
Under inflation of tyres can cause them to experience uneven or
rapid tread wear, as well as lead to an increase in fuel
consumption. In addition, under inflation reduces your vehicles
braking and handling capabilities, and can ultimately lead to
serious tyre failure. Where possible, carry your own tyre pressure
gauge. Sealing valve caps must ALWAYS be used, the best being the
metal type. If you require any assistance with the pressure of your
tyres, see your local tyre retailer.TYRE ROTATION
Regular rotation of tyres is a proven method for promoting even
wear and therefore extending tread life. If uneven wear has
occurred, this may be due to worn suspension components, vehicle
misalignment or incorrect tyre balance. These concerns cannot be
corrected by simply rotating the tyres. Your local tyre retailer
should correct these problems.
Front to back same side rotation is acceptable when tyres are
wearing unevenly. If the spare is included in the rotation it
should be exchanged with the tyre allocated to the right hand rear
position.Basic Function of Tyres
1.To roll2.To carry a load 3.To steer the vehicle 4.To transmit
braking force and power output5.To absorb (noise and mechanical
vibration)6.To last7.To handle speed 8.Low noise9.Low rolling
resistance10.To look goods
The golden rules for tyres selection1.This rule applies to all
categories of tyres, with the exception of passenger.
2.Fit the largest Tyre size possible, as recommended by the
vehicle.
3.Use the lowest ply rating-this does not apply in the case of
steel cord Radial Truck tyres.4.Recommend the correct Tyre Pressure
for the Tyre size Ply rating, Load and operating condition.
5.This pressure should ideally be as low as possible, without
under inflating the tyres.
RESEARCH
DESIGNResearch Design
Every project work requires research, successful completion of
any project and getting the genuine results from that depends upon
the research method used by the researcher. The whole research
process used by us is as follows:-
1.Problem Formulation
2.Research design
3Sample design
4.Source of data
(a)Primary source of data
(b)Secondary source of data
5.Collection of data
6.Analysis of data
7.Interpretation of data
8.Project report and writing
Research
Research can be defined as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.
Redman and Mory defines research as a systematized effort to gain
new knowledge.Marketing Research
Marketing Research is the systematic gathering, recording and
analysis of data about marketing problems to facilitate
decision-making. Marketing research is the systematic design,
collection, analysis and reporting of data and finding relevant to
a specific marketing situation facing the company.
Methods of data collection
The key for useful systems is the selection of the method for
collecting data and linking it to analysis and decision issue of
the action to be taken.
The accuracy of the collected data is of great importance for
drawing correct and valid conclusions from the detailed
investigations.There are two types of data primary and
secondary.1.Primary data: - The primary data are those which are
collected a fresh and for the first time and thus happen to be
original in character. There are several methods of collecting
primary data, particularly in survey and descriptive
researches.Some important methods of collecting primary data
are:
a. Observation Method
b. Interview Method
c. Questionnaire
d. Schedules
2.Secondary data: - Secondary data are used means that are
already available i.e. they refer to the data which have already
been collected and analyzed by someone else and which have already
been passed through the statistical process. Secondary data may
either be published data or unpublished data.
COLLECTION OF DATA THROUGH QUESTIONNAIRESThis method of data
collection is quite popular, particularly in case of big enquires.
It is being adopted by private individual research workers, private
and public organization, and even by government. In this method
questionnaires are sent to the person concerned with the request to
answer the question and return the questionnaires. A questionnaire
consist of a number of questions printed, typed in a definite order
on a form or set of forms. The respondents (dealer) have to answer
the question on their own.
COLLECTION OF DATA THROUGH OBSERVATION
We also use this method for the purpose of data collection. In
this method we have taken the sample of 100 vehicle models like
INDICA, SENTRO, WAGONR, TATA SUMO, TOYOTA, ZEN, SCORPIO, BMW,
OCTAVIA, JAZZ, and QUALIS etc (four Wheelers).
Through my personal observation I have observed the tyres used
in the above models and presented them graphically.
This observation was done in the various areas of Varanasi like
Nadeshar, Cant.Station, Taj Hotal, Patal Nagar, Chauka Ghat, Andhra
Pull, Raja Talab, Lahartara, Rohaniya, Vishal Travel, and PCF
Plaza, etc.
DATA
ANALYSISCONSUMER BEHAVIOR & MARKET SHARE OF APOLLO
TYRESObjective: - Analysis of Fitment of APOLLO TYRES by the
personal contact, Interview, questionnaire & fitment
survey.
Place: - VARANASISample Size: -(a) 100 Customer data
collection
(b) 3 campaign (c) Fitment survey of 100 vehicles Methodology: -
The data collected by two methods.
I. Primary data collection.
II. Secondary data collection.
In primary data collection, we have data collect from the
personal contact, interview, schedules and questionnaire. In
secondary data, the data are also available and we have observed
through net and company.
UTILITY: - From the collection of data we analyses the consumer
behavior & market share of various brand of Apollo Tyres &
take valuable information of tyre industry.Results: - The result is
divided into the following categories:-
A:-FITMENT SURVEY
Analysis of Front Tyres.
Analysis of Rear Tyres
Over all Analysis (Front + Rear)ANALYSIS
COMPANYNO. OF TYRES% SHARE
BRIDGE STONE3417 %
JK3819 %
CEAT168 %
APOLLO4824 %
MRF5628 %
GOODYEAR63%
OTHERS21 %
ANALYSIS OF FRONT TYRES (Four Wheelers) (200 Tyres)
GRAPHICAL REPRESENTATION OF MARKET
SHARE IN PASSENGER CAR RADIAL (Four Wheeler Front Tyres)
VARANASI. SHAPE \* MERGEFORMAT
ANALYSIS OF REAR TYRES PASSENGER CAR (Four Wheelers) (200
Tyres)COMPANYNO. OF TYRES% SHARE
BRIDGE STONE4321.5 %
JK4020 %
CEAT126 %
APOLLO5527.5%
MRF3819 %
GOOD YEAR8
4%
OTHERS42 %
GRAPHICAL REPRESENTATION OF MARKET
SHARE IN PASSENGER CAR RADIAL (Four Wheeler Rear Tyres) VARANASI
SHAPE \* MERGEFORMAT
OVER ALL ANALYSIS (FRONT+REAR)Passenger Car Radial (Four
Wheeler) (400 TYRES)COMPANYNO. OF TYRES% SHARE
BRIDGE STONE7719.25 %
JK7819.5%
CEAT287%
APOLLO10325.75 %
MRF9423.5 %
GOOD YEAR143.5 %
OTHERS61.5 %
GRAPHICAL REPRESENTATION OF MARKET
SHARE IN (Four Wheeler Tyres) VARANASI SHAPE \* MERGEFORMAT
CUSTOMER MEETING Meeting with Four wheeler owners:-
A-Nadeshar B-Patel Nagar C-Taj Hotal D-Vishal Travels E-Chauka
Ghat F-Cant-Station G-Andhra pull H-Raja TalabCAMPAIGN Nadeshar Taj
Hotal Chauka Ghat ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give
to Apollo Tyres has whole the feed back that they gave was as
follows approx 23% customer said that Apollo Tyres is excellent and
56% customer said that Apollo Tyres is very good, 21% customer said
that Apollo Tyres is average and know body is said that Apollo
Tyres is below average. The graph below shows the following
information.
When asked about where do most of the customers go for
purchasing Apollo Tyres the feed back that were received from
customers are as follows around 75% customer said that they
purchase Apollo Tyres from the exclusive dealer of Apollo Tyres,
20% customer said that they purchase from MBDs (Multi brand dealer
) so that they could make a comparison of cost between Apollo and
other brands available and rest 5% customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better
information.
When asked about how easily customer get Apollo Tyres the
response was follows approx 82% customer said that they get Apollo
Tyres very easily whenever they require them from the nearest
dealer and 18% customers said that there is always a scarcity of
the most popular brands of Apollo Tyres Ltd. Such as Aspire,
Acelere Sportz, Acelere, Hawkz and Amazer XL .The Graph below shows
the exact position.
% AGE OF SATISFIED AND DISSATISFIED USER OFAPOLLO TYRES
The 83% customers are fully satisfied with the Apollo Tyres and
just 17% customers are not satisfied with the Apollo Tyres . We met
the different customers. Customer said that the quality of Apollo
Tyre is very good. Tyre is very costly but the performance of
Apollo Tyre is better than other tyres. They said that the claim
policy of Apollo Tyre is very good. Several customers are very
friendly and the Co-operate in our work but few customers behaved
very rudely. Customers are happy with the campaign and they said
that they gain a lot of knowledge from the campaign and they said
that campaign should be organized continuously in different
area.
These things give us a good experience and obtain good knowledge
about customers attitude.
SWOT ANALYSIS
STRENGTHS -
Heavy range of products.
Brand awareness
Best promotion by display
Advertisement
WEAKNESSES -
SVS depended on APOLLO Shortage
No proper replacement of damage
Low margin for shopkeeper
No proper inspection of salesman
OPPORTUNITIES -
addition of outlet
Improve the market of APOLLO TYRES by giving some more
advantages
THREATS - More satisfaction from local wholesale market, they
can deduct the number of Outlets.
Dissatisfaction due to improper handling
Without proper inspection, salesman may be careless.
CONCLUSIONCONCLUSION1. The market share of Apollo Tyres in
Varanasi more than 25.75 % in Four wheeler Segment (Passenger Car
Radial).
2. Approximately 87% customers are satisfied with the Apollo
Tyres.
3. Rate of Apollo Tyres are not high against with the other
Company tyres.
4. After sale service (Claim) of Apollo Tyres is very good.
5. Approx 82% customer said that they Apollo Tyres very easily
whenever they require them from the nearest dealer.
6. Around 75% customer said that they purchase Apollo Tyres from
the Exclusive dealer of Apollo Tyres Ltd.
RECOMMENDATION
RECOMMENDATION
In our market analysis I found many block hole in marketing
strategy and Apollo product Existing product want some improvement
according change of technology , competition and spread of
market.
In my experience which I get within 45 days. I would like to
suggest following points.
1. Made heavy duty tyre according demand of customer.
2. Expand its advertisement, emphasis on personal
advertisement.
3. Open more outlets in order to insure availability of product
(tyres) in VARANASI market.
4. Make claim policy easy and give claim on demand.
5. To give more discount and gift in order to competitive its
competitor
6. Provide facilities to payment in installment.
7. To provide cheaper tyers with advanced quality.8. To make
better study of its competitors strategy for monopoly in market.
BIBLIOGRAPHY
MARKETING MANAGEMENT:-
By Philip KotlerRESEARCH METHODOLOGY:-
By C.R. KothariWEBSITES:-
www.apollotyres.com
www.google.com
www.weekypedia.com
AnnexureQUESTIONNAIRE
Name- KM done by vehicle-. Address- Condition of Tyres-.....
Mobile no.-.
1:- Have you heard of Apollo Tyres in PCR?
(a) Yes (b) No
2:- Are you satisfied with the radial car of Apollo Tyres?
(a) Yes (b) No (c) Dont know.3:- Which brand of Apollo tyres do
you use?
(a) Amazor XL (b) Acelers (c) Hawkz (d) Aspire (e) None of the
above.4:- Which tyre do you prefer in your used TL or TT.
5:- Which company TL tyres do you used? (a) MFR (b) Apollo (c)
Michelin (d) CEAT (e) JK (f) Other.6:- Which company TT tyres do
you use?
(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) JK (f)
CEAT
7:- which company tyres do give maximum mileage?
(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) CEAT (f)
JK
8:- Which company produces better after sales service?
(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) CEAT (f)
JK
9:- What type of warranty should company give?
(a) Conditional (b) Unconditional
10:- Which company gives fastest claim?
(a)Apollo (b) MRF (c) Michelin (d) Bridge stone (f) none of the
above
11:- What is time period you change the tyres?
(a) > 1 year (b) > 2 year (c) > 3year (d) >4 year
(e) none of the above
12:- Which company tyre is maximum accepted by the customer?
(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) JK
13:- What is the life expectancy of Apollo tyre?
(a) > 1 year (b) > 2 year (c) > 3year (d) >4 year
(e) none of the above
14:- Which brand of Apollo in PCR gives maximum services?
(a) Hawxz (b) Acelere (c) Amazor XL (d) Aspire (e) dont know15:-
Which brand of other company do you like most on the grand of
design and service?
(a) MRF (b) JK (c) CEAT (d) Bridge stone (e) Yokohoms (f)
Michelin
16:- How to promote the Apollo tyre in the market?
(a) Print media (b) Electronic media (c) Service CAMP (d)
Consumer meets (e) Other
17:- If you are not satisfied please give some suggestions?
. Signature-
Date- .
Trade analysis
Competition analysis
Industry analysis
Market segment analysis
Demand Conditions
Market opportunity
Size of the market
How well the market is served
Prospective inches
Marketing mix required to succeed
Core competencies required
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EMBED Excel.Chart.8 \s
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_1318967724.xlsChart1
0.754
0.197
0.05
Sheet1
Exclusive Dealers75%
Multi Brand Dealers20%
Other Tyre Dealers5%
Sheet1
Sheet2
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_1318967735.xlsChart1
340.17
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160.08
480.24
560.28
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NO. OF TYRES
% SHARE
PERCENTAGE OF TYRES
Sheet1
COMPANYNO. OF TYRES% SHARE
BRIDGESTONE3417%
JK3819%
CEAT168%
APOLLO4824%
MRF5628.00%
GOODYEAR63%
OTHERS21.00%
Sheet1
NO. OF TYRES
% SHARE
Sheet2
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_1319189085.xls
_1318967729.xlsChart1
770.1925
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1030.2575
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NO. OF TYRES
% SHARE
PERCENTAGE OF TYRES
Sheet1
COMPANYNO. OF TYRES% SHARE
BRIDGESTONE7719.25%
JK7819.50%
CEAT287.00%
APOLLO10326%
MRF9423.50%
GOODYEAR143.50%
OTHERS61.50%
Sheet1
NO. OF TYRES
% SHARE
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_1318967722.xlsChart1
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