Project Title: - DOMESTIC TWO-WHEELER

TYRE MARKET ANLYSIS (DEALERS &

CONSUMER BEHAVIOUR.)

Summer Internship Report Submitted in

Partial fulfillment of Integrated MBA/ MBA Programme
2016-2017
By

SIDDHANT MALHOTRA
12/IEC/049
To
Mr. Pranay Tripathy.
School of Management
Gautam Buddha University
Gautam Buddha Nagar- 201 310

Declaration by Student

I SIDDHANT MALHOTRA Roll No 12/IEC/049 hereby

declare that this project work is the result of my own research
and no part of it has been presented for any other degree in
this university or elsewhere. I am solely responsible for any
error found in this work.

Date: 20TH august 2016

Place: Gautum Buddha University, Greater Noida

Student Signature:

To Whomsoever It May Concern

This is to certify that SIDDHANT MALHOTRA student of

Integrated MBA 7th Semester at School of Management,
Gautam Buddha University, Greater Noida has done a project
work entitled DOMESTIC TWO-WHEELER TYRE
MARKET

ANLYSIS

(DEALERS

&

CONSUMER

BEHAVIOUR.) at our organization from 13TH JUNE 2016

TO 25TH JULY (6 weeks)

Signature of Co-Supervisor

Name and Designation of the Co-Supervisor

Certificate from the Faculty Guide

This is to certify that the project titled DOMESTIC 2WHEELER TYRE MARKET ANLYSIS (DEALERS &
CONSUMER BEHAVIOUR.). has been done under my
supervision by SIDDHANT

MALHOTRA of Integrated

MBA VII semester.

Name and Signature of the Faculty guide

ACKNOWLEDGEMENT

I owe a debt of gratitude to JK tyre & industries Limited for

giving an opportunity to practical exposure of corporate.
I am thankful to Mr. Mukesh Gupta for giving me an
opportunity to learn in this organization.
I am grateful to Mr. Rajnikant Mishra (Sales manager 2-3
wheeler.) & Mr. Parinay Gusain (sales executive 2-3
wheeler.) who not only helped me in the project but also
taught me about the various traits of tyre industry.
Last but not the least I am thankful to all dealers and
customers for sharing their valuable information with me.

SIDDHANT MALHOTRA
12/IEC/049

EXECUTIVE SUMMARY
About company: JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and flaps manufacturing company
based in Delhi, India. The name JK is derived from the initials of Kamlapatji (1884
1937) and his father Seth Juggilal (18571922). The company is the market leader in
Truck/Bus Radial tire in India and is the only tyre manufacturer offering the entire range
of 4 wheeler radials for Trucks, Buses and Cars. JK Tyre has a worldwide customer base
in over 80 countries across all 6 continents. It is a part of J. K. Organization group of
Companies. JK Tyre acquired Mexican tyre major Tornel in 2008. With state-of-the-art
modern production facilities in all 9 plants, total production capacity is almost 20 million
tyres p.a.
The Company is headquartered in New Delhi, Bahadur Shah Zafar Marg. Manufacturing
plants are located at six centers in India.
In the financial year of 2014-2015
Total revenue - 68 billion rupees. Or 6800 crore rupees.
Total profit - 2.53 billion rupees. or 253 crore rupees.

About tyre industry in India: Indian Tyre Industry has grown rapidly in last decades. Today it is about Rs. 9000 crore
industry. The fortune of the tyre industry depends on the agricultural and industrial
performance of the economy, the transportation needs and the production of vehicles. The
size of Indian tyre industry is estimated at about Rs.14250 crore comprising 43 players
with an aggregate installed capacity of over 655 lacks tyre. The 10 large tyre companies
account for over 95% of the total production.
The Indian tyre industry has witnessed a CAGR of 7.7 per cent over the last decade. The
demand and growth for the tyre industry depends on primary factors like overall GDP
growth, agricultural as well as industrial production and growth in vehicle-demand. It also
depends on the on secondary factors like infrastructure development and prevailing
interest rates.
The Indian tyre industry is two tiered; Tier-I players (top 5 tyre companies), account for
over 80% of industry turnover and have a well-diversified product-mix and presence in
all three major segments, i.e., replacement market, original equipment manufacturers
(OEM's) and exports. Tier-II companies are small in size, mainly concentrating on

production of small tyres (for two/ three-wheelers, etc.), tubes & flaps and the
replacement market.
Tyre industry is highly raw-material intensive, with raw material costs accounting for 70
per cent of the cost of production.
The export market for India has been predominantly to the USA that accounts for nearly
30% of exports from the country. Apart from that India exporting tyre in more than 50
countries.
The main threat to the industry is the price of its raw materials, most of which are
petroleum byproducts. Carbon, synthetic rubber and nylon tyre cord are offshoots of
petrochemicals. Thus, the future of the industry will swing with the supply of crude oil.

About project: By recently acquired Kesoram Facility in Haridwar (2 wheeler tyre manufacturer) JK
Tyres plans to enter the two wheeler tyre market with a new brand called
CHALLANGER. For this new venture JK Tyres needs to do large market survey. As an
intern I was assigned to do a brief local market survey for the same purpose.
objectives of my survey were: -

Top 3 selling 2 wheeler brand in india.

Top 3 selling 2 wheeler model in india
Top 3 selling 2 wheeler tyre brand in india.
Top 3 selling 2 wheeler tyre size in india
Top 3 selling two wheeler tyre model.
Expectation from a tyre by a 2 wheeler tyre customer.
Customers thinking on higher price indicate higher quality.
Customers reason behind the selected brand of 2 wheeler tyre.
Customers preferred brand of 2 wheeler tyre.
Tyre brands and their warranty.
Tyre brands and their pricing.
Advertisement by tyre brands to promote their products

 During this internship Ive learned about tyre industry in India, tyre market in India and
exports of tyre by JK tyres to different countries.

TABLE OF CONTENTS

List of symbols and abbreviations.

Introduction

Organization overview

Literature review

Objectives of the Project/Study

Research methodology

Data Analysis and interpretation

Findings and Conclusion

Managerial implication/ theoretical

implication

10

Suggestions

11

Limitations

INTRODUCTION.
Tyre market in India: The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited
set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the
Indian tyre industry has grown rapidly. Indian Tyre Industry now provides direct and
indirect employment to nearly 1 million persons, including dealers, sub dealers, growers
of Natural Rubber, employment in raw material sector etc. A vast majority of dealers
handle multi-brands of tyres. Tyre companies also have exclusive retail distribution
outlets.
In Indian tyre industry, capacities are concentrated in the hands of a few large players
with top four tyrecompanies accounting for over 77 per cent of industry market share.
The industry is raw material intensive with raw material constituting over 63 per cent of
the sales turnover and 72 per cent of production cost, of which rubber accounts for the
major share of the material cost. The main inputs natural rubber smoked sheets and
Technically Specified Natural Rubber (TSNR) account for 43 per cent of raw material
cost of tyres.
The major demand comes from the replacement market accounting for around 55 per
cent. It is followed by 29.80 per cent from the Original Equipment Manufacturers (OEM)
and 25.2 percent from the exports. In the past the replacement demand has been the major
growth driver of the industry. But the sustained GDP growth of more than 8.6 per cent has
also increased the demand for the OEMs. The strong Compound Annual Growth Rate
(CAGR) of 16 per cent during the 2009-2010 period, in the automobile sales gives a clear
indication of the same and has kept the both OEM and replacement demand buoyant. The
Indian tyre industry has witnessed a CAGR of 7.7 per cent over the last decade.
The demand and growth for the tyre industry depends on primary factors like overall
GDP growth, agricultural as well as industrial production and growth in vehicle-demand.
It also depends on the on secondary factors like infrastructure development and
prevailing interest rates. In India the primary factors have sustained in the last three

years helping the sector to emerge as a winner. Even the secondary factors have
helped a lot; the only concerns are raising interest rates on the automobile
segment and increased rubber prices.
The size of Indian Tyre industry is estimated at about Rs.25000 crore, comprising 43
players with an aggregate installed capacity of over 971 lakh tyres. The 10 large tyre
companies account for over 95 per cent of the total production

Two wheeler tyre market in india: Two-Wheeler Market in India Indian Two-Wheeler Market is noticing a continuous
upsurge in demand and thus resulting in growing production and sales volume. This owes
a lot to the launching of new attractive models at affordable prices, design innovations
made from youths perspective and latest technology utilized in manufacturing of
vehicles.
The sale of two-wheeler products has increased substantially. The sales volumes in the
two-wheeler sector shot up from 15 percent to 24 percent between 2008-09 and 2013-14.
A considerable expansion was seen in the sales volume of the scooter segment during
2014-15 as far as the twowheelers were concerned. This positive node makes many new
players enter in this density market. The domestic motorcycle sales volume moved up to
10 percent, whereas the scooter segment recorded a growth of 30.7 percent in sales
volume. In the past 2-3 years, around a dozen new scooter brands have been introduced in
India. But the motorcycle segment lags behind in this regard. This is due to the fact that
the recently launched gearless scooters cater to the needs of both men and women, while
motorbikes are a segment preferred by men only.
The growth momentum is also propelled by the fact that the two-wheeler manufacturers
in India have understood the markets needs and have been able to deliver as expected. At
the end of 2014, the global business involving two-wheeler designing, manufacturing,
engineering and selling was at an average of US$ 3.5 billion per manufacturer. Though,
further growth in Indian Two-Wheeler Industry will depend heavily on peoples personal
disposable incomes that rely on India's economic growth in days to come

Nature of the Industry:-

Tyre Industry is highly raw-material intensive. Raw materials cost accounts for approx.
63% of tyre industry turnover and 72% of production cost. The industry is a major
consumer of the domestic rubber market. Natural rubber constitutes 80% while synthetic
rubber constitutes only 20% of the material content in Indian tyres, 62% of total Natural
Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries.
Interestingly, world-wide, the proportion of natural to synthetic rubber in tyres is 30:70.

Tyre Export: Indian tyres have good acceptance in global markets. Compounded Average Growth Rate
(CAGR) of tyre exports in the last one decade has been 8%. Exports to over 65 countries
worldwide. 17% export to highly quality conscious US market. Other major export
markets are - (countries in) Latin America; UAE, Bangladesh, Iran, Philippines, Vietnam,
etc. Over 20% of truck and bus tyres (bias) produced domestically are exported.
Emphasis now is on export of radial tyres, including Passenger Car radial tyres. All large
tyre companies are exporting as a long term commitment.

Various types of Tyre segment: The 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), animal drawn vehicles, scooters, motorcycles, mopeds, bicycles
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%).

Truck and Bus Tyres:- The truck and bus tyre segment accounted for 19% of tyres
produced in India in FY2015. Every truck/bus manufactured generates 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 FY2015; the OEM demand accounted for around 9% the same year. With the
Indian manufacturers 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 FY2015. With passenger car production witnessing a growth of 12%
in FY2015 over the previous year, OEM demand accounted for about 41% of the total
sales that year. The replacement market accounted for around 58% of the total sales of
passenger car tyres in FY2015. Exports accounted for 4% of the total passenger car tyre
demand in FY2015. With the stock of cars increasing, replacement demand is likely to
continue.

 Motorcycle Tyres :- Motorcycles accounted for 76% of two-wheelers sold in the domestic
market in FY2016. Motorcycle tyres constitute the largest segment of the domestic tyre
industry (29% of total tyre demand in FY2015). The replacement market accounted for
around 49.8% of the total motorcycle tyres sold in FY 2015, while OEM demand
accounted for around 50%.

Scooter Tyres :- Scooters were the dominant segment in the Indian two-wheeler industry
till FY1998, accounting for around 42% of domestic two-wheeler sales. However, the
introduction of new motorcycle models has seen the share of scooters declining to 19% of
domestic two-wheeler sales in FY2015. The OEM segment accounted for around 34% of
the total sales in the scooter tyre segment in FY2015, with the rest being accounted for by
the replacement market.

JK Tyre entering in two or three wheeler segment: JK Tyre & Industries the country's third-largest tyre maker, The company plans to
produce two-wheeler tyres in-house at the recently acquired Kesoram Facility in
Haridwar and will not outsource like many other. It to enter the two-wheeler segment
through the trading route as it steers clear of investing a fresh in manufacturing facilities
in a slowing auto market. JK is very optimistic about the two-wheeler tyre market and

plans to sell through the OE and aftermarket route. They are working on signing up with
vendors and they are also exploring both local and international vendors. They will
service both the aftermarket and OEM (original equipment manufacturer) segment.
Tag line of two wheeler tyre is CHALLENGER (Har Challenge ke liye tyar) which
means don't let things stay the way they are, they go against something already in place
and they will ready for every challenge. Its a brand promise also.
Challenger Tyre Series for two wheelers. Costs less but comes with unmatched
performance, be it mileage, durability or better grip.
Brand Promise - Harr Challenge ke liye Taiyaar .
Product Deliverable High performance with unmatched price
Analysis of the 4 Ps: Product: - The basic definition of a product is anything that can be offered to
a market to satisfy a want or need. JK Organization differentiates itself from
the competition, on its two pillars of High Quality and Endurance. Product
are offering in market are two wheeler and three wheeler.

 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. 6 Tyre plants located in
various places in India. 4000 Dealers and 1000 exclusive in India. Basically
JK tyre sell a product on 1800 Existing dealers and new motorcycle dealers
(non truck 2/3 wheeler sellers)

 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 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. JK Tyre
promote a two wheeler tyre by provide a product catalogue and provide
free tyre stand to dealer with unconditional warranty strap.

Competitor in market for two wheeler tyre segment : MRF :-

 About the Company: - The company, MRF Ltd., originally started as a

small manufacturing unit of balloons, latex cast squeaking toys and
industrial gloves.A young entrepreneur, K. M. Mammen Mappillai, opened
a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras
(now Chennai).The company established its first office in 1949 at Chennai.
It began the manufacturing of tyres in 1961.
Vision: The vision of MRF is to emerge as pre-eminent global players in
the field of polymers and make INDIA a global super power in terms of
technology and life.
Mission: The mission of MRF is that zero defect, zero break down, zero
accidents, zero pollution, and there by zero losses with their new
performance standards.
Objective:- The main quality objective of the company is to attain global
standards through the continuous improvement in the quality of products
and services and also to maintain market leadership.

Goal: The main goal is to optimistic and continue to make investments in

our existing plants to increase overall revenue and share. Their products
continue to be the preferred choice of the customer even though many
options are available in the market. They are the first Indian company to
supply aircraft tyres to the Indian defence, joining the league of select
global companies who have the expertise to manufacture these tyres.
Operations continue to be profitable and plans are afoot to increase its
revenue further.

 Analysis of the 4Ps: Product: The basic definition of a product is anything that can be offered to
a market to satisfy a want or need. MRF differentiates itself from the
competition, on its two pillars of High Quality and Endurance.
List of Product :

MRF Zapper D (Scooter)

MRF Nylogrip (Scotter)

MRF Zaffer FG

MRF RIB and RIB plus.

MRF Mogrip Moto D

MRF Mogrip Meteor M

Place: 7 plants located in various places in South India. 2,500 outlets in India
and exports to over 65 countries worldwide. Its distribution channels
include:

Factories

Divisional And Regional Distribution Centres

Carrying And Forwarding Agents

Dealers

Price: MRF has been a leader in the Passenger Car tyre segment. By virtue
of their market share, they have traditionally been price makers. The rest of
the tyre industry has followed the pricing cues set by these leaders. Mark-up
pricing is the common pricing method followed across the tyre industry.
Promotion: Excellent brand recognition in all categories of vehicles in the
tyre market. Sports celebrities and event endorsements- a major vehicle for
promoting their brand.

CEAT:-

 About the Company:-Ceat Ltd. is a part of the RPG conglomerate. The

company offers the widest range of tyres to leading Original Equipment
Manufacturers across the world. They manufacture a range of tyres catering
to various segments. The company operates two plants in Maharashtra. The
company has a robust national network consisting of 34 regional offices and
over 3,500 dealers. The company has their presence in 110
countries.Products are known for their superior quality & durability and are
recognized as being born tough. Presently focusing on catering to the fast
growing passenger car and two wheeler industry.
Vision:- CEAT will at all times provide total customer satisfaction through
products and services of highest quality and reliability.
Mission: - To nurture an exciting and challenging work environment with
fairness & transparency.
Objective: - To continuously focus on new product launches and has launched
over a 100 new products in FY 2013-14.
Goal: -To outperform the industry and to emerged as one of the fastest
growing tyre companies in the industry.

Analysis of the 4Ps: Product: - Product is the set of all product line and items that a particular
seller offers for sale to the buyer. Product line is a group of products that are
closely related because they function in a similar manner, are sold to the
same customer groups, are marketed though same types of outlets of fall
within a given price range.

CEAT Zoom

CEAT Grip
CEAT Liittle master
CEAT milaze
CEAT secura sport
CEAT Vertigo Sport

Price: - There are two types of pricing policy are :- CEAT tyre has adopted
penetration price policy . Because in consumer products there are many
competitors prevailing in the market. So it is not possible to set a very high
price in the initial period. Considering their competitors policy CEAT tyre has
adopted penetration price policy.
Promotion: - Promotion is a form of communication to accept ideas, products,
and services and hence persuasive communication becomes heart of
promotion. It is said that, In a competitive market without promotion nothing
can be sold. Generally CEAT ltd gives advertising on television and in
newspaper mostly.
Place: - The path through which goods and services travel from the vendor to
the consumer or payments for those products travel from the consumer to the
vendor. A distribution channel can be as short as a direct transaction from the
vendor to the consumer, or may include several interconnected intermediaries
along the way such as wholesalers, distributors, agents and retailers. CEAT
has one of the largest distribution networks for tyre in India. It has divided the
Indian sub-continent into 33 regions and has set up a regional office for each
region.

ORGANISATION OVERVIEW
About JK organization:-

The J. K. Organization is a group of companies with headquarters in Delhi and run by the
Singhania family which rose to prominence in Kanpur, India, under Lala Kamlapatji, a
fighter for Indian independence who burnt up his stock of English cloth on the call of
Mahatma Gandhi during his satyagrah call against British rule. Kamlapatji also set up the
Uttar Pradesh Chamber of Commerce. The name JK is derived from the initials of Kamlapatji
(18841937) and his father Seth Juggilal (18571922) who belonged to the family associated
with the Marwari firm Sevaram Ramrikhdas of Mirzapur .The JK group was founded in
1918.
The group rose in importance in the 1960s and 1970s when it occupied the third position as
an industrial conglomerate after the Birla and Tata conglomerates. The family is currently
divided into three main groups headed by 3 patriarchs namely Dr.Gaur Hari Singhania based
out of Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania,
based out of Mumbai. These three patriarchs are first cousins who now run independent
businesses. The Kanpur family runs JK Cements, JK Techno soft, the Delhi family runs, JK
Tyre, JK Papers, JK Lakshmi Cement, Fenner India, JK Risk Managers & Insurance Brokers
and the Mumbai family runs the Raymonds group of companies. To maintain the family
history and legacy, the various family run companies though completely independent and
many publicly owned and listed subscribe to the JK Group Logo and the oldest male member
of the generation in power by tradition becomes the President of the JK Group ( The
Association of Trade unions) and allots the logo to companies run by various family members
as and when the apply for membership and pay an annual fee for the same.

The group rose in importance in the 1960s and 1970s when it occupied the third position as
an industrial conglomerate after the Birla and Tata conglomerates. The family is currently
divided into three main groups headed by 3 patriarchs namely Dr.Gaur Hari Singhania based
out of Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania,
based out of Mumbai. These three patriarchs are first cousins who now run independent
businesses

. The group rose in importance in the 1960s and 1970s when it occupied the third position as
an industrial conglomerate after the Birla and Tata conglomerates. The family is currently
divided into three main groups headed by 3 patriarchs namely Dr.Gaur Hari Singhania based
out of Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania,
based out of Mumbai. These three patriarchs are first cousins who now run independent
businesses

About JK Tyre:-

JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and flaps manufacturing company
based in Delhi, India. The name JK is derived from the initials of Kamlapatji (18841937)
and his father Seth Juggilal (18571922) .The Company is the market leader in
Truck/Bus Radial tire in India and is the only tyre manufacturer offering the entire range of 4
wheeler radials for Trucks Buses and Cars. JK Tyre has a worldwide customer base in over
80 countries across all 6 continents. It is a part of J. K. Organization group of Companies. JK
Tyre acquired Mexican tyre major Tornel in 2015. With state-of-the-art modern production
facilities in all 9 plants, total production capacity is almost 20 million tyres p.a. JK Tyre &
Industries Ltd is also part of the JK Organisation, one of Indias leading private sector
conglomerates with multi-product, multi-location, multi-country and multi-business
operations founded more than 100 years ago.JK Tyre is one of Indias leading four-wheeler
tyre manufacturers and among the 25 largest tyre manufacturers in the world. JK Tyre
pioneered radial technology in India in 1977; the Company is the leader in the countrys truck
/bus radial segment today.

 Mission:

Be a customer-obsessed Company where the customer first 24x7.

Be Indias number one tyre brand.
Be the most profitable tyre company in India.
Sustain a motivated and committed team for performance excellence.

Vision: To be amongst the most admire companies in India committed to be

excellence.
Core values : Excellence comes not from mere words or procedures. It
comes from an urge to strive and deliver the best. A
mindset that says, when it is good enough, improve it. It is
a way of thinking that comes only from a power within.
Caring for people
Integrity including intellectual honesty, openness, fairness
and trust
Commitment to excellence

Chairmans statement: -

The tougher the external environment, the more passionate our

response.
An overview of JK Tyres 2014-15 performance by the Chairman and
Managing Director Raghupati Singhania
The year 2014-15 ended on broadly a positive note for the Indian
economy, though the macroeconomic challenges are yet to completely
subside. With governmental spending normalizing and subsidy bills falling,
Indias GDP grew by 7.3% compared to 6.9%. It is expected that the
countrys growth may improve further in the coming year, largely on the
back of a pick-up in public and private investments and a concomitant
growth in consumption.
The Indian automobile industry also finally saw an uptick in sales on the
back of a gradual revival in market sentiment and the opening up of the
mining and infrastructure sectors. The Indian automobile industry posted
overall sales growth of 7.8% during FY 2014-15 compared to the previous
fiscal, which had seen a growth of sub 4%.

 CSR Initiatives: Road safety:- Road Safety is an area of great concern

almost a threat to humanity. Realising this, JK Tyre has been
doing its bit to create awareness about the Road Safety, in
different sections of society, across the country. Regular
road safety campaigns on major highways, expressways
and in metros, in association with various authorities, are
conducted across the country, and literatures have been
made available at large scale.
Health care: - The long standing Parivartan project in
association with the Population Foundation of India for
Reproductive and Child Health Activities cover 60 villages
in Rajasthan. The extensive outreach program is provided
through mobile clinics and since 2004, 2 lacs patients have
been benefited.
Education :- To Quote Swami Vivekanand, Education is the
manifestation of perfection in Man. This sets a huge
agenda for society at large. At JK Tyre the support to
education extends from the primary to the Highest Level of
education.
Environment: - All Plants have maintained the highest level
efficiency in conserving resources especially energy and
water. Both Jaykaygram and Mysore Plants have been
awarded with the Green Tech Environment Award in the
Gold category. JK Tyre, Jaykaygram is the first Tyre plant in
India and the second tyre plant in the world to receive the
ISO 50001:2011 for certification from British Standard
Institution for Energy Management Systems.

 Research and Development:It has an R&D division, Hari Shankar Singhania Elastomer And Tyre Research Institute
(HASETRI) with headquarters at Kankroli under the directorship of renowned scientist, Dr.
Mukhopadhyay. It has two more branches: one in Faridabad and one in Chennai. It is known
for its state-of-the-art Finite Element Method, NVH and tyre-testing capabilities. This R&D
facility is one of its kind in Asia. HASETRI is India's first and foremost independent
Research and Testing Center, which fulfills the Nation's need for developing newer and better
technologies for Elastomer and Tyres. It is recognized under SIRO (Scientific and Industrial
Research Organization) by the Department of Scientific and Industrial Research (DSIR),
Govt. of India. It is also acknowledged by the Indian Institute of Technology (IITs) and other
universities for registration leading to higher studies. Apart from the R&D facility there is
also a Product Development Cell present in the Faridabad facility. The Chennai operation is a
joint initiative of IIT Chennai and JK tyres.

JK Tyre The Growth Journey :-

Marketing Strategies: Analysis of 4 Ps

Product: - Product is an engine of vehicle of the company for providing

consumer satisfaction. The product is most important conversion by which
any firm can prove its efficiency intention of quality product is a symbol of
the business firm product is center point around which all the activity of the
business. JK Tyre - one of the leading tyre manufacturers in India that
provides best tyres with an array of products including car/bus/truck tyres.
JK Tyre & Industries Ltd, pioneers of radial tyres in India, showcased their
formidable new product range covering different product segmentsPassenger Cars, Truck, Light Commercial Vehicle and Farm Radials at this
years.
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.

JK Tyre Key Partners to Leading of OEMs:-

SWOT Analysis of JK tyres Strengths

Strong brand image
Being quality oriented rather than quantity oriented
Large product width & line (product mix)
Economies of scale due to optimum capacity utilization
Very large distribution channel
Collaboration with Vikrant Tyres, known for their technological superiority,
bringing together performance, economy, durability & comfort.
Strong Financial position.

Weakness
Less Brand awareness.
Less concerned about small car segment.
Opportunities

 An enthusiastic workforce and growing middle class population.

High growth potential for its exports, especially in Europe.
Threats
Entry of new player with newer and better technologies in small car tyre
segment.
So many close competitors like Apollo, Birla, Ceat, Modi, Kaizen etc

Competitors of JK Tyre:-

LITERATURE REVIEW
PESTEL Analysis for tyre industry.

Political factors - The Customs Duty Rate on Tyres

The peak rate of Customs Duty on all nonagricultural products were
progressively reduced in the Union Budgets during the last few years, but in
the case of Natural Rubber the rate of 20% has remained unchanged for
over a decade. This has resulted in a serious anomaly of Customs Duty on
raw-material (Natural Rubber - 20%) being higher than the Customs Duty
on finished product (Tyres - 10%).
FICCI has also given the following recommendations for the tyre industry:
FICCI would request for waiver of Customs Duty on all raw materials not
manufactured domestically.
To overcome problem with respect to exports of tubes / flaps, it is suggested
to include 'Tyre Manufacturer' as a class of Exporters under Rule 20 of
Central Excise Rules to allow them procure tubes and flaps without
payment of duty for exports.

Economic factors - The Demand Cycle of the Tyre Industry

There is a hike in the tyre prices due to the devaluation in rupee. Around 15
% decline in rupee in the month of May and June has put pressure on the
margins of tyre companies as the raw material costs have gone up. Growth
in M&HCV replacement demand is affected by as lower economic growth.
Since there is a slowdown in demand the tyre giants are evaluating how
much of the increase in cost can be passed on to the customers.
Raw materials comprise almost 85 % of the cost of the tyre and with the
devaluation of rupee, the import cost has gone up. The tyre makers are still
importing rubber, a key raw material, as it is cheaper. The OE tyre market is
sluggish while the replacement tyre market is stable. The car sales are
expected to pick up in the second half of the year provided the interest rates
come down. In the current situation exports have become viable for the tyre
companies. The economic turmoil in Europe has not affected exports as the
region is not a big buyer. Indian exports are made to South America and
Africa for exports in a big way,

Social Factors - Explosion in the Number of Nuclear Families

 As the joint-family system crumbles and the number of nuclear families

explode, more small families seem to be demanding a two/four wheeler for
themselves. This has directly resulted in higher sales of tyres in the past
decade.
Higher car density per family: The number of upper-class and upper-middle
class families is more than one car per family, seems to be increasing
exponentially. This is especially true in cities where working members of
same family find it difficult to survive without more than one car for
transportation. With higher disposable incomes, these families are finally able
to afford this need.
Shifting Savings to EMI culture: Another notable trend that seems to be
fueling car sales (and therefore tyre sales) is the shift in the middle-class
consumer saving habits. The Indian middle-class family has long been known
for its saving frenzy. But with a younger workforce, higher disposable
incomes, lower unemployment and the influence of globalization, the average
Indian middle-class family is slowly warming up the idea of EMI and buying
on credit. This has helped in furthering the sales of passenger cars
significantly.
Rubber has helped the farmers to get a steady income, and they are able to get
good money for their produce almost throughout the year. The best part about
rubber is that it can yield almost throughout the year, only except for a brief
gap in summer and here in winter. If the economic growth improves, then
consumption of rubber will also go up.
Technical factors
The Indian tyre market has attracted global manufacturers on account of
encouraging growth figures. These manufacturers are expected to invest huge
amounts into the industry over the next few years, with a major proportion of
this investment directed towards the Truck & Bus (T&B) radial tyre capacity
expansion. As per the study, several Greenfield plants are in pipeline to
include new capacities. The implementation of brown-field projects is
executed to cater to the growing demand. Greenfield units are expected to go
on-stream in the coming years, just by the time when there will be an urgent
need to bridge an increasing demand-supply gap in T&B radial tyre segment.
Environmental Factors
Scrap tyres are about to become the latest headache for a government still
smarting from the debacle over its mountain. New ways will have to be found
to dispose the tyres that are stockpiled or put in landfills every year. The
problem is huge. The number of tyres in use is forecast to increase by up to
60% by 2021, as the number of vehicles rises. Every day, 100,000 are taken
off cars, vans, trucks, buses and bicycles. It is widely estimated that there are
now more than 200m lying around. By their very nature, tyres are difficult to
dispose of. They are designed not to fall apart while you're driving along the
motorway, so they are one of the more intractable issues. Although tyres

remain substantially intact for decades, some of their components can break
down and leach. Environmental concern centers on the highly toxic additives
used in their manufacture, such as zinc, chromium, lead, copper, cadmium and
sulphur. The environment agency is launching a campaign later this month to
alert the public and industry to the need to prolong the life of existing tyres
and find new recycling methods. The best use of tyres is probably to retread
them, but this is now expensive, and fewer than ever are recycled in this way.
Around 48,500 tonnes are converted into "crumb rubber", used in carpet
underlay and to make surfaces such as those on running tracks and children's
playgrounds. More controversially, a further 18% are burnt as a "replacement
fuel" in the manufacture of cement. This is fast becoming the most popular
way of disposing of them, but it is of increasing concern to environmentalists
and scientists. Tyre burning emits ultra-fine particles that have a toxicity all of
their own. The toxicity is even stronger if this contains metals such as nickel
and tin, which you get when you throw the whole tyre into the furnace. If the
metal content of the particles goes up, then there is going to be an increasing
impact on health.
Legal Factors
Incidence of excise duty on tyres continues to be high around 24%, the same
as on luxury products like air-conditioners etc. In addition there are several
local taxes and levies imposed on tyres. Ultimate burden of high taxes falls on
the consumer. Apart from high Excise Duty, various embedded taxes (viz.
Sales Tax, Cess etc.) take the total tax incidence on tyres to an even higher
level. Truck and Bus tyres are used in vehicles for transportation of common
man and goods. In February, 1988, as per a directive of the Ministry of
Industry, Embossing of MRP on truck and bus tyres was started. This was
based on the recommendations of the Committee on Tyre Industry (1984,
known as Satyapal Committee). In the last over 15 years, the economic
scenario has undergone a sea change with liberalization, removal of controls
and free global trade in most items. Tyre Industry is also delicensed. Major
raw-materials of tyre industry (Natural Rubber and petroleum based materials)
undergo wide fluctuations in prices. In such a dynamic scenario, it is a not
practical to emboss the price on tyres due to market dynamics.

Michael porters five forces model for tyre industry :-

 Bargaining power of suppliers: In the tyre industries the Bargaining power of suppliers is high because the
demand for most raw materials, especially rubber, has been high. While the
supply is restricted. So, it will result into the rise in the price. And it will be
resulted in high supplier power.
availability of raw material: The demand of raw material is very high and
specially rubber because it is the primary raw material used for making the
tyre and the demand for rubber is high and supply is restricted.
Bargaining power of buyer: OEMS:- The OEMs are always in strong position when the bargaining
power of buyers is concerned. The reason behind this is most of them are
having contract with their relative tyre manufacturer under which the prices
of tyre remains stable for this OEM irrespective of market price. The benefits
are given to them as they are buying in bulk and the relation gives the tyre
firms something called brand association.
Replacement:-The scene in replacement segment is quite reverse as the
bargaining power for the replacement segment is moderate due to the fact that
the buyers are not that strong as compared to OEMs. The demand in buses
and truck segment is always high because of Indian poor road conditions
apart from this the purchase is made in small units. So it is obviously that
bargaining power of buyer is high.

 Threat of substitute: It is moderate or as the industry is facing opposition from retreading sector
all over the globe. This cheaper option, around 20-25% of the original tyre
cost, is present in developed countries since some decade back. And this is
heading towards strong position here in India too.
Threat of new entrants : The threat of new entrant is described as low because the industry is highly
capital intensive and the level of technological expertise required is also
highly specific. But if we see from domestic (Indian) industry's point of
view, this better can be defined as high. The reason being, global tyre
industry is already seeing mergers and acquisitions in order to restructure.
And as of now India and China going to be the hub of activities as far as tyre
industry is concerned due to low production cost as well as other relevant
benefits. So for any of the global big shot Indian company will be a good
option to go for.
Capital requirements: Capital requirement for investing these type of business
is very high because the kind of machinery and technology required for
production of tyre is very advanced so there is very less opportunity for new
entrants.
Government Policy: Government policy regarding establishing new business
is very strict because these kind of business generate high pollution and it is
dangerous for the enviourment as well as health of people.
Industry rivalry
High, because gradually the overseas players are expanding their wings over
Indian tyre industry and also a limited and every player is moving towards
automated technology, like ERP and SCM. Apart from the aforementioned
reason, the industry is seeing high competitive scenario at present because of
various reasons like rising input costs, low realizations from growing OEM
segment.
where the vehicle manufacturers are not ready to share the burden of tyre
firms, the portion of replacement pie continuously taken away by the
retreading sector which is slowly but firmly rising its head and that to in high
realization segment of Bus-Truck tyres and last but not the least the
unorganized sector is always there to give head ache to these established
players like CEAT, JK, Apollo and MRF etc.

Growth of tyre industry in india :-

 Domestic market to grow at a CAGR(Compound Annual Growth Rate ) of 9 10 per cent

till FY19:The strain on automotive demand impacted the Original Equipment Manufacturer (OEM)
demand for tyres in FY14. At the same time replacement demand which constitutes
around 65-70 per cent of tyre demand also remained muted. Lower freight demand during
past couple of years translated into lower movement of commercial vehicles resulting in
low wear and tear of tyres, consequently low replacements during FY14 CARE Research
foresees the domestic tyre industry (replacement and OEM demand) to grow at a CAGR
of around 9-10 per cent in tonnage terms. The growth would be driven by both OEM and
replacement demand led by the economic revival.
OEM demand would witness moderate improvement during FY16:OEM demand which formed around 32 per cent of the total domestic demand (OEM and
replacement) in tonnage terms during FY14, and it is likely to witness moderate
improvement during FY16 driven by expected economic revival on account of new
government formation. However, comprehensive revival of the OEM demand can be seen
a couple of years away until the economic concerns completely fade away. CARE
Research foresees Scooter and LCV tyres to drive demand for OEM segment. Economic
concerns would fade away in medium to long term; the revival is expected in consumer
spending as a result LCV demand would pose healthy recovery. Moreover, rising demand
from female buyers combined with its growing preference among the urban middle and
upper middle class male buyers as a second vehicle would fuel demand for scooters.
Replacement demand is expected witness healthy growth during FY16: Replacement demand currently forms around two-third of the total domestic demand for
tyres in the country. CARE Research expects replacement demand to grow by 8 per cent
during FY15. Strong growth in automobile sales in FY11 and FY12 would transform in
healthy replacement demand for tyres in the next 2 year period. Moreover, dip in
replacement demand growth was witnessed during FY14 as a result of postponements of
purchases owing to strained purchasing power on account of high inflation and lower
income levels. Consequently, delayed purchases would come into picture during FY15.
ATMA (Automotive Tyre Manufacturers Association) data for financial year 2016
According to ATMA data, in the financial year ending 31st March 2016. For the growth,
tyre manufacturers are betting big on the improving demand in medium & respectively in
FY 2015-16 (Apr-Sep), whereas passenger car tyres segment saw muted growth of 7
percent in the same period. Domestic tyre demand in all segments will grow, and Chinese
imports in Truck and Bus Radials have come down. Production of vehicles in CV / LCV,
Passenger Car , Tractors and Two-Wheelers should see an increase in 2016, as the overall
economy may look up, more so in rural segment. In a Scooter segment, both in Urban and
Semi-Urban, will continue to grow and with Rural market income likely to go up further,
Motorcycle sales also will see better numbers, in 2016. According to data released by
industry body Society of Indian Automobile Manufacturers (SIAM) in December 2015,

the passenger car segment continued to be on growth track for 14th consecutive month.
Last month, the segment grew by 12.87 percent. The M&HCVs segment is also doing
well. For the month of September 2015, this segment reported maximum growth of 63.76
percent. According to data from ATMA, import of radial tyres has reached 1, 10, 000
units per month between April-September, 2015.heavy commercial vehicles (M&HCVs)
and passenger car segments. "M&HCVs and passenger car segments of automobile
industry have shaken off the recessionary phase and are posting decent growth rates", he
added. M&HCV and LCV tyre production was down by 2 percent and 14 percent.

2015-16: Favorable outlook on tyre Industries:Domestic tyre industry expected to grow by 4%-8% over the next three years: The
domestic tyre industry is estimated to have grown by 10%-12% during 2014-15,
supported by 7.0%-7.5% growth in OEM segment and 12%-15% growth in the
replacement segment. ICRA expects the tyre industry to report a growth of 4%-8% over
the next three years, supported by pick up in auto OE demand across segment. Headwinds
from the motorcycle and tractor segments, weaker exports and Chinese imports would
however persist over the next 12 months.

Segment mix (OEM, replacement & exports of tyres in india) : In the following pie chart we see that OEM (original equipment manufacturers) have a
major share (60%) in the tyre production, followed by the replacement market (30%) and
finally exports (10%) have the least share in tyre production in india in FY15.

Product mix (commercial vehicle, personal vehicle, 2 wheeler, tractor and

others.)
In the following pie chart we see that CV (commercial vehicle) has a major share (60%)
in the tyre production, followed by the personal vehicle (23%) followed by tractors (9%)
followed by 2 wheelers (6%) and finally OTR (1%) have the least share in tyre
production in india in FY15.

Product mix (in tonnage): FY15

1% 9%
6%

23%

CV

PV

61%

2W

OTR

TRACTOR

Others

Market is dominated by few large players, with MRF remaining the

leader:
Over the years, MRF has been the dominant player in the country (estimated based on
turnover) by virtue of its strong product capabilities apart from focused branding
efforts backed by a deep distribution network panning across India and steady
exports. However, several players (Apollo, JK and CEAT in particular) have
challenged its market share in recent years through prudent brand management
backed by sizeable investments in product development / capacities. Global majors
like Goodyear and Bridgestone have also increased their share in India in recent years.
Over the medium term, ICRA expects the competitive intensity in the industry to rise
with expected on-streaming of several Greenfield and Brownfield capacities by
domestic as well as international players.

Industry's SWOT Analysis: Strengths

Revival in economic activity: After reporting falling car sales over the past
two fiscal, India's automotive industry had begun a gradual recovery as
customer sentiment improved following the general election in May 2015.
India's new government, led by Prime Minister Narendra Modi promising
to revive economic growth and kick-start investment. With economic
growth, demand revival likely to sustain in consumer durables, particularly
in automobiles, it would have a positive impact on the tyre sector. Besides,
emphasis on infrastructure in terms of development of roads will also
increase demand for tyres.
R&D initiatives by top players: With the focus on providing better
products and services, the Indian tyre manufacturers are setting up wellequipped in-house R&D centers with emphasis on developing cutting edge
technology for compound development, development of new designs for
different segments, reinforcement materials, cost optimization for quality
improvements and orientation towards changing customer requirements.
Although most of the tyre players do not engage in basic research due to
the high costs involved, but a significant proportion of R&D effort in the
tyre sector is being carried out by four- five top companies.

 Limited competition: Despite having more than 40 players in the Indian

market, the industry's competition is limited to top ten players only as the
industry is controlled by these top ten players, holding 90 to 95% of the
market share.
Weakness
Highly capital intensive: The tyre industry is highly capital intensive and
the level of technological expertise required is also highly specific. One
requires roughly Rs 400 crore to set up a radial tyre plant with a capacity
of 15 Lakh tyres and around Rs 150-200 crore, for a cross-ply tyre plant
of a 15 Lakh tyre-manufacturing capacity.
Fluctuation of exchange rate: As most of the tyre companies are
expanding their operations around the globe there is a widespread impact
of sharp currency fluctuations. In simple terms, it shrinks the receivables
of exporters and makes life easier for importers as the prices of imports
get cheaper. A sharp fluctuation in the currency hits the small and mid-cap
companies harder than their larger peers, as the larger players can manage
the situation through actively managing (hedging) the currency and
working with the scale. Eg. Balkrishna Industries' approximately 90%
revenues are generated through exports and the Company also imports lot
of its raw materials and capital equipments; it is exposed to high risks
due to currency fluctuations.
Pricing Pressures: The tyre industry in India is a highly competitive sector
with a very cut throat competition among the leading players. Any rise in
raw material costs would result in pressure on the realizations and though
the players vouch to increase the prices, due to competitive pressures,
they have not been able to pass on the entire increase to the consumers.

Opportunities
Improvement in Automobile Industry prospect: Growing economy leads
to improving Automobile Industry prospect which further leads to
Increasing OEM demand that in turn leads to Subsequent rise in
replacement demand. With continued emphasis being placed by the
Central Government on development of infrastructure, particularly
roads, agricultural and manufacturing sectors, the Indian economy and
the automobile sector/ tyre industry are poised for an impressive
growth.

 Access to global sources for raw materials: with the access to global
sources for raw materials, Indian tyre industry can stabilize price
fluctuation in raw materials and control their margins. Furthermore,
Indian tyre companies can also follow and maintain global quality
standards and international process and system certifications, which will
help them during export. Eg. Balkrishna Industries imports natural
rubber and has very little exposure to domestic rubber price fluctuations
and thus margins have remained strong.
Exploration of new markets: Many Indian tyre companies are exploring
the opportunities to enter into new markets. Recently, Apollo Tyres
confirmed Hungary as the location for its first Greenfield facility
outside India. The company has decided to setup facility over there after
receiving the necessary approval from its board of directors on the
proposed investment towards setting-up a Greenfield facility in Eastern
Europe. This facility will produce both, Apollo and Vredestein branded
tyres, and will cater to the entire European market, and will complement
Apollo Tyres' existing facility in the Netherlands.

Threats
Introduction of other transport facilities: Introduction of other transport
facilities like metro, monorails and local trains keeping pollution hazards
caused by combustion of automobile fuels.
Cheaper imports of Tyres: The major concern for the Indian
manufacturers is that the price of the tyres in the overseas market like
China and South Korea is comparatively low compared to domestic
market. Therefore, many automobile manufacturers have switched to the
option of importing tyres from international market. The landed cost of
tyres from China is much lower than the Indian price. In addition, tyres
from South Korea are imported at 30% customs duty while from other
countries the duty levied is 35%. Therefore in both cases the Indian tyre
manufacturers are on receiving end.
Expectation of rise in natural rubber prices: Natural rubber prices, which
accounts for over one third of total raw material costs, are expected to rise
as Total output of Natural rubber in India is likely to drop over 10 percent
in 2014/15 from the previous crop year, hit by heavy rain in key growing
regions and as farmers suspends tapping due to lower prices.

OBJECTIVES OF PROJECT

By recently acquired Kesoram Facility in Haridwar (2 wheeler tyre manufacturer) JK

Tyres plans to enter the two wheeler tyre market with a new brand called
CHALLANGER. For this new venture JK Tyres needs to do large market survey. As an
intern I was assigned to do a brief local market survey for the same purpose.

objectives of my survey were: -

Top 3 selling 2 wheeler brand in india.

Top 3 selling 2 wheeler model in india
Top 3 selling 2 wheeler tyre brand in india.
Top 3 selling 2 wheeler tyre size in india
Top 3 selling two wheeler tyre model.
Expectation from a tyre by a 2 wheeler tyre customer.
Customers thinking on higher price indicate higher quality.
Customers reason behind the selected brand of 2 wheeler tyre.
Customers preferred brand of 2 wheeler tyre.
Tyre brands and their warranty.
Tyre brands and their pricing.
Advertisement by tyre brands to promote their products.

RESEARCH METHODOLOGY

I surveyed 100 bikes in a parking lot to gather data to complete following objectives: Top 3 selling two wheeler brand.
Top 3 selling two wheeler model.
Top 3 selling two wheeler tyre brand.
Top 3 selling two wheeler tyre size.
Top 3 selling two wheeler tyre model.

I did market surveys where I visited 20 major tyre dealers in delhi to gather data to
complete following objectives: Top 3 selling two wheeler tyre brand by tyre dealers.
Top 3 selling two wheeler tyre size by tyre dealers.
Top 3 selling two wheeler tyre model by tyre dealers.
Tyre brands and their warranty.
Tyre brands and their pricing.
Advertisements by tyre brands to promote their products.

I surveyed 20 customers at tyre dealers shop to gather data to complete following

objectives: Customers preferred brand of 2 wheeler tyre.
Customers Expectation from a 2 wheeler tyre.

 Customers reason behind the selected brand of 2 wheeler tyre.

Customers thinking on higher price indicate higher quality.
I prepared a questionnaire for my purpose to gather information from the surveys.
All data collected for this project is primary data through these surveys.

DATA ANALYSIS AND INTERPRETATION.

1) 100 bikes survey

According to the noted data from the survey following can be interpreted: Top 3 selling two wheeler brands.
1) Hero Honda with 26% share (almost 26 out of 100 two wheeler
is of hero honda)
2) Honda with 22% share (almost 22 out of 100 two wheeler is of
honda.)
3) Bajaj with 20% share. (Almost 20 out 100 two wheeler is of
bajaj.)

 Top 3 selling two wheeler tyre size.

1) 100/90-17 with 40% share. (almost 40 out of 100 tyres is of
size 100/90-17)
2) 3.00-17 with 20% share. (almost 20 out of 100 tyres is of size
3.00-17)
3) 2.75-17 with 16% share. (almost 16 out of 100 tyres is of size
2.75-17)

 Top 3 selling two wheeler tyre brand.

1) MRF with 34% share. (almost 34 out of 100 tyres is of

MRF.)
2) CEAT with 26% share. (almost 26 out of 100 tyres is of
CEAT.)
3) TVS with 18% share. (almost 18 out of 100 tyres is of
TVS.)

Top selling two wheeler tyre brand.

13%
34%

9%

18%

26%

MRF

CEAT

TVS

MICHELIN

OTHERS

Top 3 selling two wheeler model.

1) Splendor with 20% share. (Almost 20 out of 100 two
wheeler is hero honda splendor)
2) Activa with 18% share. (almost 18 out of 100 two wheeler
is honda activa )
3) Passion with 15% share. (almost 15 out of 100 two wheeler
is hero honda passion. )

 Top 3 selling two wheeler tyre model.

1) Nylogrip zapper MRF with 37% share.

2) Milage CEAT with 26% share.
3) Anaconda TVS with 16% share.

2) 20 tyre dealer surveys.

According to the noted data from the survey following can be interpreted: Top 3 selling two wheeler tyre brand by tyre dealers.

1) MRF with 46% share. (Almost 9 out of 20 tyre dealer says that MRF is
sold the most)
2) CEAT with 29% share. (Almost 6 out of 20 tyre dealers says that CEAT is
sold the most)
3) TVS with 20% share. (Almost 4 out of 20 tyre dealer says that TVS is
sold the most.)

Top 3 selling two wheeler tyre size by tyre dealers.

1) 100/90-17 with 32% share. (Almost 6 out of 20 tyre dealer says that
100/90-17 tyre size is sold the most)
2) 3.00-17 with 24% share. (Almost 5 out of 20 tyre dealer says that 3.0017 tyre size is sold the most)
3) 90/90-17 with 23% share. (Almost 5 out of 20 tyre dealer says that
90/90-17 tyre size is sold the most)

Top 3 selling two wheeler tyre model by tyre dealers.

1) MRF- Zapper with 45% share (Almost 9 out of 20 tyre dealer says that
MRF-Zapper is sold the most)

2) CEAT- Milage with 25% share (Almost 5 out of 20 tyre dealers says that
CEAT- Milage is sold the most)
3) TVS- Anaconda with 15% share (Almost 3 out of 20 tyre dealer says that
TVS-Anaconda is sold the most.)

 Tyre brands and their warranty.

1) Brands like CEAT, TVS & Michelin are providing unconditional

warranty in which whole tyre is replaced in case of wear & tear
while under warranty period. This has lead to fast exponential
growth of both brands in indian market specially CEAT tyres in a
small period of time.
2) Major brands like MRF, Apollo & Birla are following conditional
warranty in which the price of tyre is reimbursed as per the tyre
usage. These companies dont need unconditional warranty due to
the established goodwill from many years.
In Shop Branding of MRF , Ceat , Michelin :- In Shop Branding is a very
simple concept. It is the promotion of any store or the chain of product we are
making or different type of products we are selling in our store. In shop
branding is the best marking alternative inside showroom and shops and so
on the ground that it directly comes in the customers line of vision when they
are enter in the shops. The procedure of marketing begin with former visit
estimation of conspious , eye getting spaces accessible in the shops , after
that imparting presentation to customer & adjusting fine art according to
items showed adjustment measured spaces.

1) MRF

2) CEAT

2) Michelin

3) 20 tyre customer surveys.

According to the noted data from the survey following can be interpreted: Customers preferred brand of 2 wheeler tyre.
1) MRF with 53% share. (Almost 11 out of 20 customers prefer MRF as
their tyre brand.)
2) CEAT with 30% share. (Almost 6 out of 20 customers prefer CEAT as
their tyre brand.)
3) TVS with 10% share. (Almost 2 out of 20 customers prefer TVS as their
tyre brand.)

 Customers Expectation from a 2 wheeler tyre.

1) 55% expect better grip (11 out of 20 customers)
2) 30% expects better mileage (6 out of 20 customers)
3) 10% expects better service (2 out of 20 customers)

 Customers reason behind the selected brand of 2 wheeler tyre.

1) 52% customers selects tyre brand by the brand image (almost 10 out
of 20 customers)
2) 20% customers select tyre by the tyre quality (almost 4 out of 20
customers.)
3) 18% customers select tyre by its price (almost 3 out of 20 customers.)

 Customers thinking on higher price indicate higher quality.

1. 75% customers think higher price of tyre indicates higher quality. (15
out of 20 customers.)
2. 25% customers dont think higher price of tyre indicates higher
quality. (5 out of 20 customers.)

 Kind of service expected by customer.

1) 47% customers expects tyre change within 24/48 hors (9 out of 20
customers)
2) 31% customers expects tyre claim (6 out of 20 customers.)
3) 22% customers expects nearby service centers. (4 out of 20
customers.)

 Preference of customers on tubeless or tube tyres .

1) 90% customers prefer Tubeless Tyre upon replacement. (18 out of
20 customers.)
2) 10% customers prefer Tube Tyres upon replacement (2 out of 20
customers.)

FINDINGS AND CONCLUSION

Hero Honda is the leading two wheeler vehicle manufacturer followed by

Honda and bajaj respectively.
MRF is the leading two wheeler tyre manufacturer followed by CEAT and
TVS respectively.
Splendor by hero Honda is the leading two wheeler vehicle followed by
activa by Honda and passion by hero Honda. Respectively.

 Nylogrip zapper by MRF is the leading two wheeler tyre followed by

mileage by CEAT and anaconda by TVS respectively.
Brands like CEAT, TVS & Michelin are providing unconditional warranty,
whereas major brands like MRF, Apollo & Birla are following conditional
warranty.
Customers prefers grip of the tyre the most before buying two wheeler tyre
followed by milage and service repectively.
Customers goes by the brand image of the company the most before buying
two wheeler tyre followed by quality and price respectively.
Majority of the customers think higher price of tyre means higher quality.
Majority of customers expect tyre change within 24/48 hrs, followed by
tyre claim and nearby service centres respectively.
Majority customers prefer tubeless tyres over tube tyres.
Customer Buying Behavior very much depends on dealers suggestion and
on the condition of store.
Brands like CEAT, MICHELIN & MRF are extensive in advertisement,
whereas brands like TVS ,BIRLA , APOLLO are selective in advertisement.

SUGGESTIONS

some suggestions for JK Tyres new brand CHALLANGER by doing this

market survey can be:-

people prefer guaranteed(unconditional) tyres.

Increase Tie up with two wheeler companies.

 Open Service Center for proper maintenance of tyre.

Company should use the raw material of better quality for the long life of
the tyre.
People prefer tubeless tyres.
They should improve their distribution channel so all people get its
product easily.
They should have extensive promotional activity to attract more people to
use product.
They should have good after sales service to give more satisfaction and
attract new customer to use product.
They should have companies like Hero Honda, Honda ,Bajaj etc. as their
OEM partners.

REFERENCES

http://www.atmaindia.org/
http://www.crisil.com/index.jsp
https://en.wikipedia.org/

 http://www.jktyre.com/productselector.aspx

http://www.mrftyres.com/services/tiretok
http://bikeindia.in
http://economictimes.indiatimes.com/