Marketing Project

MRF Tyres - Passenger Cars

Group 2 (Section B)
Asima Dash (9067)
V.Ganesh (9075)
Pragna Kolar (9092)
Rohan Koshie (9099)
Sriprasanna.M (9111)
Overview of Tyre Industry

 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
Company Profile
 Startedin 1946 as Madras Rubber Factory, MRF
started off by manufacturing rubber products

 MRF Ltd entered the tyre business in 1960

 Today,MRF is a leading tyre manufacturer of India

exporting to more than 60 countries worldwide

 Nurtures
cricketing talent through MRF Pace
Foundation, Chennai
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
 Government’s 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 Ansoff’s Model
Market Penetration Product Development
• Attract
users of Competitors’ • Product Line Extension
Products Helicopter, motorcycle & farm vehicle tyres
Competitive Advantage (durability, reliability,
proven track record) • Product reformulation
Wanderer- cut- resistant tyre compounds

• New Product Development

ZSLK- Eco friendly, tubeless tyre

• Product Quality Improvement

ZV2K premium tyre- Long term even tread
wear
 Analysis using Ansoff’s Model (Contd.)
Market Development Diversification
• Target New Segment • Unrelated Industry
OEM tie ups with car manufacturers Producing and partnering with other
(Hyundai , Ford, Tata Motors) companies in unrelated industries like toys,
paints and bats
• Expand Geographically
Exports to 65 countries such as Bangladesh, • Related Industry
Vietnam ,South Africa Producing conveyor belts, pre treads
harnessing

• Integrative Growth
• Forward Integration- Exclusive company outlets across the world
Competitors
 JK Passenger Car Tyre market
 Apollo
 Bridgestone 21% JK
25%
Apollo
 Goodyear Bridgestone
Goodyear
 Ceat 4% 16%
14% Ceat
MRF
21%
Competitors’ Analysis
J K Tyres
 17th largest tyre manufacturer in the world & virtually covers the
entire OEM market in India.
 World’s 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 6000
140
5000 Sales Turnover in
120
4000 Rs cr (sep 2008)
100
80 3000
60
2000
40 Net Profit
20 in Rs cr 1000
(sep 2008)
0
0
JK MRF Apollo
Tyres Tyres 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