Leela Finalod

Declaration I Leela Krishna Prasad, Roll no:- 2085422035, of course M.B.A. of GAYATRI VIDYA PARISHAD, Visakhapatnam, AP, declare that I have successfully completed my summer project in Apollo Tyres, Vishakapatnam, AP. The title of my project was “COMPITITOR ANALYSIS IN TRUCK TYRES”. My guide for the project was Mr. Jhon Kiran (District Manager) and my mentor was Prof. K. Murali Someswara Rao (Faculty, GAYATRI VIDYA PARISHAD). And the information content in this project is true to the best of my knowledge and the research and analysis in this project is my sincere effort to put some light on my project.

Date:

Leela Krishna Prasad

A PROJECT REPORT ON

COMPITITOR ANALYSIS IN TRUCK TYRES

.

SUBMITTED FOR THE PARTIAL FULFILLMENT OF

MBA FROM

GAYATRI VIDYA PARISHAD SUBMITTED BY:

Leela Krishna Prasad ROLL NO:-

2085422035

BATCH-2008-2010

ACKNOWLEDGEMENT

Success can only be achieved with the optimal combination of inspiration, right guidance and perspiration and not just hard work alone. And in this competitive world getting the right combination is a very difficult task and I am glad to express that I am among the lucky few. And the credit goes to my guide and project mentor Mr. Jhon Kiran (District Manager), and Mr. Pavan Darsan (Regional Manager) Apollo Tyres Ltd. Their time to time involvement and suggestions help a lot to building blocks of my project. Last but not the least I am very grateful to Dr. S.Rajini (Director, GAYATRI VIDYA PARISHAD) for providing me such a wonderful opportunity to work and gain experience from such a wonderful organization.

Leela Krishna Prasad

Table of contents CONTENTS

EXECUTIVE SUMMERY INTRODUCTION  Overview of Indian Tyre Industry  Trade policy in India w.r.t. Tyre Industry  Tariff/Duties on tyres

COMPANY PROFILE  About APOLLO  Mission and Vision  Board of director  Corporate  History  Apollo Tyres over the years  Importance happenings (year-wise) OBJECTIVE OF THE COMPANY OBJECTIVE OF THE RESEARCH  Primary objective  Secondary objective RESEARCH METHODOLOGY DATA ANALYSIS  Calculations for questionnaires FINDINGS CONCLUSION RECOMMENDATIONS LIMITATIONS OF THE STUDY REFERENCES ANNEXTURE BIBLIOGRAPHY

Executive summary

Apollo tyres Ltd. is a well established company in the Indian Tyre Industry also make its felt at global level. Now it is the tyre manufacturing company which crosses a turnover of $1 billion. And I am very grateful to completing my summer training in this company. I was given to work on the market standing of Apollo tyres in passenger car tyres segment. Then I chose to work on, consumer’s perception and also predict the possible future line of action. And for this I conducted

1. Questionnaire. This survey consisted personally interviewing the Truck owners, with the help of questionnaire, in order to study the consumer perception about different brands of tyres and other factors related to it. I was guided by my project guide Mr. Jhon Kiran (District Manager) Apollo Tyres. I got a lot of relevant information about the Apollo tyres and its operation as well as Indian tyre industry at the national and global level from him. I also got a lot of information through internet, paper/magazines, and also from the truck owners. To conclude I would like to say that my experience with this project in terms of knowledge and application was an acid test and banking on my academic knowledge and ideas, I tried to draw the best out this provided opportunity. And I look forward to add this experience to my armory for future challenges.

INTRODUCTION

Major Playersin

TyreIndustry

MRF CEAT Apollo

Ltd (ATL)

Tyres

MRF A leading company in the tyre industry, MRF Ltd. boasts of an enviable track record. The company has continued in the same vein and has been posting excellent results, notwithstanding the winds of recession blowing across the economy. Performance of the company has been commendable in light of the fact that the user industry is facing a slowdown. The company has benefited from better productivity and operational efficiency. The company caters to a host of impressive clients. It has signed on to be the sole supplier for auto giants like General Motors, Fiat and Ford in India. The company is also renowned for its exports, which have also been witnessing positive growth. The company has recently entered the radial tyre segment and has met with positive response. The performance of the company could further improve with the revival of the auto industry. Thus, MRF Ltd. can be expected to retain its position in this segment. However, investors can move out of the scrip, considering the outlook for the industry as a whole. CEAT Being the second largest selling brand in India with a market share of 14.6 per cent, Ceat caters primarily to the replacement market. Due to the strong growth in the OEM sector, the share of the replacement market in the total revenue of the company has fallen. However, the production growth in the automobile sector over the past few years should provide a boost to the

replacement market in the coming years and Ceat could be a major beneficiary thereof. With the advent of multinationals like Goodyear, Michelin, Bridgestone and Continental, a major shakeout in the industry is imminent and the same could result in Ceat, which is already operating on thin margins, being hived off as a joint venture with Goodyear, in collaboration with which Ceat has already promoted South Asia Tyres for manufacturing radial tyres in India. With a modest track record on the financial front, the forthcoming results may not beencouraging. Apollo Tyres Limited A slow-down in the tyre market and rubber procurement at high prices has put the brakes on Apollo Tyres Limited (ATL). The company has traditionally been the market leader in the truck and bus tyres segments. ATL caters to the replacement segment of the domestic market. Following its take over of Premier Tyres, ATL's market share has risen. Besides the core truck and bus tyre business, fairly considerable part of its turnover comes from automotive tubes and flaps, for which it has commissioned a plant in Pune. Despite a reversal in the fortune of the automobile industry, the chief user base of the company’s products, the demand for truck tyres, particularly in the replacement market, was not encouraging. Even as tyre producers grapple with over-capacity and high levels of inventory, the government stirred a hornet’s nest by proposing free imports of used and second-hand tyres. ATL has conversion agreements for small tyres with TCIL, Stallino Tyres and Rado. Its exports are routed through Apollo International to the US, Germany, Brazil, Sudan, Egypt, etc. A wellentrenched posend this article to a friendsition in the replacement market, favours ATL and the declining price trend of key inputs like natural rubber and carbon black may provide relief to its wafer-thin margins. At the current price level the scrip has emerged as an attractive buy; thus accumulate its shares in small lots. Tyres Tires or tyres (see American and British English spelling differences) are pneumatic enclosures used to protect and enhance the effect of wheels.Tires are used on all types of vehicles, from cars to earthmovers to airplanes. Tires enable vehicle performance by providing for traction, braking, steering, and load support. Tires are inflated with air, which provides a flexible cushion between the vehicle and the road that smooths out shock and provides for a comfortable ride quality. The earliest tires were bands of iron (later steel), placed on wooden wheels, used on carts and wagons. The tire would would be heated in a forge fire, placed over the wheel and quenched, causing the metal to contract and fit tightly on the wheel. The tension of the tire served to impart strength to the wheel. The tire then provided a wear-resistant surface to the perimeter of the wheel. This work was done by a skilled craftsman, known as a

wheelwright. The first practical pneumatic tire was made by the Scot John Boyd Dunlop for his son's bicycle, in an effort to prevent the headaches his son had complained of while riding on the rough roads of the time (Dunlop's patent was later declared invalid because of prior art by fellow Scot Robert William Thomson). However, the pneumatic tire also has a more important effect of vastly reducing rolling resistance compared to a solid tire. Because the internal air pressure acts in all directions, a pneumatic tire is able to "absorb" lumps and bumps in the road as it rolls over them without experiencing a reaction force opposite to the direction of travel, as is the case with a solid (or foam-filled) tire. The difference between the rolling resistance of a pneumatic and solid tire is easily felt when propelling wheelchairs or baby buggies fitted with either type. Pneumatic tires are made of a flexible elastomer material such as rubber with reinforcing materials such as fabric and wire. Tire companies were first started in the early 20th century, and grew in tandem with the auto industry. Today over 1 billion tires are produced annually, in over 400 tire factories, with the three top tire makers commanding a 60% global market share. Tyres by Type 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%). In India, however, passenger car tyres have a mere 17% share of the overall tyre market (as of FY2003). Truck and Bus Tyres The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2003. 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 FY2003; 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 FY2003. With passenger car production witnessing a growth of 12% in FY2003 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 FY2003. Exports accounted for 4% of the total passenger car tyre demand in FY2003. 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 FY2003. Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% of total tyre demand in FY2003). The replacement market accounted for around 49.8% of the total motorcycle tyres sold in FY 2003, 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 twowheeler sales in FY2003. The OEM segment accounted for around 34% of the total sales in the scooter tyre segment in FY2003, with the rest being accounted for by the replacement market. Impact of Union Budget 2007-08 The Indian tyre industry is a Rs.14,500 crore market comprising 37 companies with an operational capacity of 76.6 mn units by the end of FY’06. Despite capacities being concentrated in the hands of a few large players with top 4 tyre companies accounting for over 77% of industry market share, the Indian tyre industry is intensely competitive and price sensitive with volumes becoming the key earnings driver. Demand for tyres is derived mainly from the replacement segment which has been influencing the growth of the industry for long. However, with the rapid growth in automobile production, the OEM segment has seen robust growth in recent times. Truck & Bus tyre is the dominant product category accounting for 59% in tonnage terms. Passenger car tyres with 9% share is one of the fastest growing segment along with LCV and motorcycle tyres. As much as 96% of the raw material consumed by tyres is either natural rubber or petroleum products like nylon tyre cord fabric (NTC), styrene butadiene rubber (SBR) and poly butadiene rubber (PBR) etc. With their cost accounting for nearly 55% of the turnover and 70% of production cost, the price trends in key raw materials have a major bearing on the profitability of tyre companies. During April-December 2006, tyre production grew 12% p-o-p in volume terms after registering a growth of 10% in FY’06. The period, especially the June Qtr, witnessed several price hikes across tyre categories prompted by continuous rise in prices of natural rubber. On an average, increase in tyre prices has been about 10-15% in both replacement and OEM market during this period. In the light of the above and easing of rubber prices towards the close of year 2006, operating margins of the players during the December Qtr have improved remarkably after being subdued in FY’06 and H1’07. However, given the current firmness in the natural rubber prices, it remains to be seen if players can sustain the margins although softening crude prices may lead to lower costs of other inputs such as NTC, SBR and PBR. Imports account for negligible portion of the total market and are mainly concentrated in the Truck/Bus and passenger car segment. In October 2006,GoI imposed provisional anti dumping duty through ‘reference price route’ on non-radial truck tyres imported from China and Thailand. This move, however, is unlikely to change the scenario, as the reference price is based on prices which prevailed during April 2005 to June 2006, since when the production costs have gone up. Budget Proposals

• •

Excise duty on tyres and its raw materials to remain at 16% Reduction in excise duty on Caprolactam (raw material for NTC) from 16% to 12%. Excise duty on Benzene used in manufacture of Caprolactam also reduced from 16% to 12%. A special purpose fund for re-plantation and rejuvenation of rubber to be launched.

•

Changes in Duty Structure Customs Duty Finished Products Truck / Bus & LCV Car cross ply/radial Motorcycyle

Existing (2006-07)

Proposed (2007-08) (%)

12.5

10

12.5

10

12.5

10

Inputs

Existing (2006-07)

Proposed (2007-08) (%)

Natural Rubber

20

SBR

12.5

10

PBR

12.5

10

Carbon Black

10

5

Butyl Rubber

10

5

NTC Fabric

10

5

Rubber Chemicals

12.5

7.5

20

Note: • • • •

Education cess of 3% is applicable For Natural Rubber, there is a cess of Rs.1.5/kg in lieu of excise duty For NTC fabric, anti dumping duty of $0.54 - $0.81 per kg is levied on Chinese imports. Under the Asia Pacific Trade Agreement, countries like China and South Korea can import tyres at concessional rate of 8.6% for FY’08.

The cut in customs duty on tyres is likely to increase cheaper imports, especially from countries for whom preferential tariff treatments are extended under regional trade agreements. Imports, however, form a negligible portion of the total market and would continue to remain so. Also cheaper imports are unlikely to moderate the domestic tyre prices.

The cut in customs duty on key petroleum based raw materials like PBR, SBR, CB etc is likely to help tyre companies contain their costs to some extent. The cut in excise duty on caprolactam and its feedstock benzene is likely to moderate the cost further as caprolactam is a key raw material for NTC fabric which forms 22% of cost of manufacturing tyre. Continued economic expansion coupled with the investment in road infrastructure is likely to have a favourable impact on the replacement and OE demand for tyres in the long run. Overall impact for the tyre industry is expected to be moderately positive. Budget Impact on Companies Company CEAT MRF

Products

% of sales Changes

Complete Range Complete Range

Overall Impact

89 84

J K Tyres

Mainly Truck/Bus, LCV,Passenger Cars

91

Apollo Tyres

Mainly Truck/Bus, LCV,Passenger Cars

90

Reduction in customs duty on key raw materials – PBR, SBR, NTC Fabric, CB etc.

Overview of Indian tyre industry DATA UPDATED F.Y. (2008-2009) •

Total number of Tyre Company in India:- 43

•

Total number of Tyre Factories in India:- 51

•

Tyre Industry Turnover (F.Y.2007-2008):- Rs.19, 000 Crores.

•

Capacity utilization:- 87%

•

Taxes and Duties paid:- 5510 Crores (29% of Total Turnover).

•

Tyre Production (tonnage):- 11.32 Lakh MT.

•

Total Export from India (in nos.)= 1865300 and (in value) Rs.2700 Crores.

•

Export to more than 65 countries world-wide.

•

Top 10 tyre companies accounts for over 95% of total tyre production.

•

Tyre Industries is highly raw material intensive. Raw material cost accounts for 60% of tyre industry turnover and 70% of production cost.

•

Total raw material consumed (in weight) Rs.12.42 Lakh MT and (cost incurred) Rs.11, 600 Crores.

•

All tyre industry related raw materials can be imported freely. And import of tyres and selected critical raw material is allowed at preferential rate of tariff under some regional trade agreements (RTAs).

•

Truck and bus tyres constitute (65-70) % of total tyres exported from India to more than 65 countries.

Trade policy in india w.r.t. tyre industry •

All categories of tyres can be exported freely.

•

All categories of new tyres can be imported freely

•

Used/retreaded tyres are under Restricted Category as per EXIM Policy.

•

No WTO bound rates for tyres and tubes.

•

Tyres imports under Regional Trade Agreements (With Asia Pacific, Sri Lanka, SAFTA and Singapore) allowed at preferential rates of custom duty.

•

Tyre industry deli censed in September, 1989.

•

Tyres are classified as an item under the category ‘consumer goods’.

•

It is not an ‘essential commodity’ under the Essential Commodity Act.

•

Anti Dumping Duty on Bias Truck tyres, tubes and flaps exported to India from China and Thailand.

TARRIF/DUTIES ON TYRES Custom Duty:Excise/Countervailing Duty (CVD)

: 10%

Preferential Custom Duty:Asia Pacific Trade Agreement

: 8.60%

Indo Sri Lanka Free Trade Agreement

: nil

SAFTA (South Asia Free Trade Agreement)

: 10%

India Singapore Comprehensive Economic Cooperation Agreement (CECA)

Raw material for tyre industry

: 9.38%

56% of total Natural rubber consumption is by the tyre sector. Given below is the composition of raw materials a percentage (%) of total raw material cost. PERCENTAGE NATURAL RUBBER NYLON FABRIC CARBON BLACK RUBBER CHEMICAL BUTYL RUBBER POLYBUTADINE STYRENE BUTADINE BEAD WIRE OTHERS

41 20 10 5 5 5 3.5 2.5 8

Source:- ATMA

caTATEGORY WISE TYRE PRODUCTION IN INDIA

TRUCK AND BUS

IN LAKH NOS. 98.33

CAR

121.20

JEEP

11.20

LCV

38.61

TRACTOR(FRONT 29.53 ,REAR,TRAILER) SCOOTER 86.58 MOTERCYCLE

207.71

INDUSTRIAL

5.20

Category wise export of tyres from IndiA

TRUCK AND BUS

IN NOS. 1865300

TRACTOR

73211

PASSENGER

803329

MOTORCYCLE

236994

SCOOTER

329618

JEEP

4153

LCV

1145301

INDUSTRIAL

3938

Source:- ATMA

Firm wise export of tyres, tubes from india

IN% APOLLO MRF JK CEAT BIRLA GOODYEAR TVS FALCON REST

16 21 21 18 9 2 3 0 10

Source:- ATMA

MAJOR EXPORTER OF TRUCK TYRES PERCENTAGE

CHINA INDIA INDONESIA,THAILAND &OTHERS S KOREA & JAPAN

55 25 11 9

Source:- ATMA

INTERNATIONAL TYRE RATING ORGANIZATIONS

•

ISO

: International Standard Organization

•

DOT

: Department of Transportation

•

T&RA

: Tyre and Rim Association

•

ETRTO

: European Tyre and Rim Technical Organization

•

JATMA : Japanese Automobile Tyre Manufacturers Association

COMPANY PROFILE

About apollo Apollo Tyre Ltd. is a high performance company and the leading Indian tyre manufacturer with revenue of over US $1 billion. It is built around the core principle of creating value through reliability in its products and dependability in its relationships with stakeholders.

MANUFACTURING UNITS:In India : 4 •

Perambra-Cochin, Kerala

•

Limda- Baroda, Gujarat

•

Ranjangaon- Pune, Maharashtra

•

Premier- Kalamassery, Kerala

In South Africa :- 2 •

Durban, Kwazulu Natal

•

Ladysmith, Kwazulu Natal

In Zimbabwe

:-2

•

Bulawayo, Matabeleland

•

Harare, Harare

NETWORK SYSTEM:-

•

120 sales, service and stock points.

•

19 states offices.

•

4200+ dealers in India.

•

2500 exclusive outlets.

•

51 Apollo Pragati Kendra

Mission & vision

“A significant player in the global tyre industry and a brand of choice, providing customer delight and continuously enhancing stakeholder value” The man who dares is the man who has dreamt…at Apollo Tyres Ltd. They firmly believe that no opportunity can be created without a proper plan. Our effort draws inspiration from that vision because we dare to dream. To create best tyres in the world is not only our mission but it’s our life style, our passion.

Board of directors

•

Onkar S Kanwar, Chairman and Managing Director, Apollo Tyers Ltd.

•

Neeraj R S Kanwar, Managing Director, Apollo Tyres Ltd.

•

T Balakrishnan, Principal Secretary (Industries), Govt. of Kerala

•

L C Goyal, Principal Secretary (finance), govt. Kerala

•

Michel J Hankinson, Former Chief Executive Dunlop Tyres International (Pty) Ltd

•

Nimesh N Kampani, Chairman, JM Morgan Stanley Ltd.

•

Raja Kanwar, Managing Director, Apollo International Ltd.

•

Dr. S Narayan, Former Principal Secretary to the Prime Minister of India

•

U S Oberoi, Chief, Corporate Affairs Apollo Tyres Ltd.

•

M R B Punja, Former Chairman, Industrial Development Bank of India

•

Arun Kumar Purwar Former Chairman State Bank of India

•

K Jacob Thomas, Managing Director, Vaniamapara Rubber Co Ltd

•

Suman Sarkar, Chief Financial Officer, Apollo Tyres Ltd

•

Shardul S Shroff, Senior Partner, Amarchand and Mangaldas and Suresh A Shroff and Co.

•

Robert Steinmetz, Former Chief of International Business, Continental AG

•

P N Wahal Company Secretary

Corporate “People deliver innovations Innovations deliver success A few of the difference our people made”

At Apollo Tyres they always look out for newer opportunities. And when they do not come there way they go ahead and create them. Over the years they have created opportunities for success, growth, and brighter future. There never ending pursuit for excellence has made them travel to almost every road and create opportunities other does not see. What had started as a journey on a rough road 32 year’s back has reached places where we are making our own roads. They have conquered horizons and have contributed to created newer opportunities in profits, sales, market capitalization and most importantly growth.

Core values:

C: care for customer R: respect for customer E: excellence through team work A: always learning T: trust mutually E: ethical practices

History The history of Apollo Tyres Ltd. is about a company’s passion, determination and will to surpass all obstacles and emerge as a leader in the Indian Tyres Industries. Named after the radiant Greek Son God Apollo, the company has created niche for itself in the Indian tyre market. After three decades of consistent growth, today Apollo Tyres Ltd. is India’s premier tyre manufacturing company. Apollo Tyres Ltd. history dates back to the early seventies. Mr. Mathew T Marattukalam, Jacob Thomaas and his associates obtained the company’s license in 1972 in 1974 the company was taken over by Dr. Raunaq Singh and his associates. The tyre project was implemented in 1976 in Perambra and Kerala. The commercial production was begin in 1977 with an installed

capacity of 420, 000 each of tyres and tubes. This was the starting of what we see today a billion dollar industry.

Apollo tyres over the years First Tyre Company to launch exclusive branded outlets- Apollo tyre world-for truck tyres. First to segment the market on the basis of load and mileage requirements. First to introduce packaging for car and two-wheeler tyres and tubes. First to run a customer loyalty programmed First to introduce radial tyres for the farm category First tyre company t in India to obtain ISO Certification for all its operations First to produce H, V, and W-speed rated tubeless tyres First to run HIV-AIDS awareness and prevention clinics for the trucking community First to support the creation of an Emergency Medical Service in an Indian city First to execute an overseas acquisition

First to reach revenue of over us $1 billion

Important happenings (year-wise)

1975 Inception

1975 Registered as a company

1977 First plant commissioned in Perambra (Cochin, Kerala)

1991 Second plant commissioned in Limda (Baroda, Gujarat )

1995 Acquired Premier Tyres in Kalamassery (Cochin, Kerala)

1996 Exclusive tubes plant commissioned in Ranjangaon (Pune, Maharashtra) 2000 Exclusive radial capacity established in Limda

2000 Established Apollo Tyres Health Care Clinic for HIV-AIDS awareness and prevention in Sanjay Gandhi Transport Nagar, Delhi

2003 Expansion of passenger car radial capacity to 6,600 tyres/day

2004 Production of India 's first H-speed rated tubeless passenger car radial tyres 2004 Support in setting up India 's first Emergency Medical Service in Baroda, Gujarat

2005 Apollo Tyres Health Care Clinics in Udaipur in Rajasthan and Kanpur in Uttar Pradesh

2006 Expansion of passenger car radial capacity to 10,000 tyres/day

Objectives of the company

•

To increase road traffic safety by means of an intelligent tyre system.

•

To enable improvement for vehicle control system.

•

The objective of maximizing stakeholder’s value.

•

More than 5,000 exclusive dealers, the largest network in the country.

•

Dream target of Apollo Tyres to touch Rs.5, 000 Crores by 2008-2009.

Objectives of the research PRIMARY OBJECTIVE •

To study the close relation between the consumer perception and preference of customers of truck tyres in the market.

•

To know the Increasing the Truck Radial market

SECONDARY OBJECTIVE

•

To configure the market standing of Apollo tyres.

•

Evaluate the market share of major players in Truck segment of tyre industry.

•

Look for the future market trends and predict them.

• To find the which factor influence the purchase decision •

What is the most preferred character while choosing a brand

•

To find out the most proffered type in the tyres (Radial or Nylon)

•

To know the position of the Apollo Tyres in market

Research methodology

METHODOLOGY The method used for this survey is cluster sampling technique. The analysis is based on the independent opinion of the samples.

SIZE OF SAMPLE In this analysis the sample size for fitment3022 trucks and for questionnaire-81 truck owners. GEOGRAPHYCAL AREA COVERED The location of the survey was Srinagar,Vishakapatnam, A.P. The sample consisted of transport owners, fleet owners, and self owned truck drivers

DATA ANALYSIS

Calculation for competitor analysis type of tyre do you purchase Users

Percentage

Radial

21

24%

Nylon

67

76%

TOTAL

88

100%

PIE CHART FOR MAJOR TYRE TYPE

From the above table and graph, it was found that in trucks NYLON have the maximum share of customers i.e. (76%) in the market. Remaining is RADIAL next to it having share (24%).

MARKET SHARE OF LEADIND BRANDS

BRAND

USERS

Percentage

APOLLO MRF CEAT JK BIRLA IMPORTED OTHERS TOTAL

31 28 03 19 18 5 1 105

29% 27% 3% 18% 17% 5% 1% 100%

From the above table and graph it shows the primary objective of the research i.e. the brand preference. From this table it was found that APOLLO is the most preferred brand of share 29% and be the market leader. And MRF is the 2nd preferred brand of share 27% next to APOLLO. And JK is acquiring the 3rd position of share 18% in the market. And Birla is in 4th position of share 17% And the remaining brands IMPORTED,CEAT,OTHERS have 5%,3%,1% respectively.

HOW LONG YOU ARE USING THIS BRAND

TIME

NUMBER OF CUSTOMERS

Percentage

6MONTHS

04

5%

2YEARS

24

30%

>2YEARS

53

65%

TOTAL

81

100%

From the above table and graph shows how long the customers stick to that particular brand. it shows the customer loyalty in this tyre industry. From this table it was found that 65% of customers stick their brand >2 years, 30% of customers is 2years, and less percent i.e. 5% of people is shows less brand loyalty.

MEDIA OF COMMUNICATION

MEDIA

NO.OF CUSTOMERS INFLUENCED

Percentage

WORD OF MOUTH

61

75%

SALES PROMOTION

16

20%

ADVERTISEM ENT

04

5%

TOTAL

81

100%

From the above table and graph shows how the customers influenced by the promotional aspects, here the customers are mainly (75%) influenced by word of mouth and secondly the customers are influenced by sales promotional techniques (20%) and at last only 5% of customers are influenced by advertisement.

Quality of the brand

Quality

NUMBER OF

Percentage

Excellent Good Average TOTAL

CUSTOMERS 03 77 1 81

4% 95% 1% 100%

It was found from the above table and graph that the customers are really satisfied with the quality of the brand here 95% of the customers said that the quality is excellent and 4% said that it is good and only 1% of the customers said that it is average

SELECTION OF BRAND CAUSE

NO.OF CUSTOMERS

Percentage

COST

26

17%

BRAND IMAGE

5

3%

DURABILITY

46

30%

MILAGE

58

38%

RETRADING

9

6%

WARRANTY

2

1%

SERVICE

3

2%

DEALERS

3

2%

ALL OF THE

2

1%

ABOVE TOTAL

81

100%

From the above graph mileage and durability plays a major role in selecting the brand and also the cost of brand plays a major role and the others like retarding ,services and dealers ,warranty also plays minor role in selecting the brand and there is 1% of the people select the brand who wants all the options given .

PREFERRED PURCHASING CENTERS. TOTAL

Percentage

CREDIT GOOD WILL FRIEND LOW PRISE SERVICE TOTAL

51 40 06 03 03 103

49% 39% 6% 3% 3% 100%

From the above graph, it is clearly visible that most influencing factor for buying decision is credit and good will hear the customers buying place is influenced by the credit customers prefer the shop which gives credit and the place which have good will and the influence of the friends ,price and service is very low

PREVIOUS BRAND BRAND NAME

IN NUMBER

Percentage

APOLLO

09

20%

MRF

17

39%

CEAT

02

4%

JK

10

23%

BIRLA

04

9%

IMPORTED

02

5%

TOTAL

44

100%

From the above graph we can note that the main competitors in the market are jk ,mrf and Apollo compared to jk and mrf the retention customers are high in Apollo and the other brands are having very low number of customers the retention of customers are low in that brands.

CAUSE FOR CHANGE IN BRAND

CAUSE

IN NUMBER

Percentage

MILEAGE

8

20%

COST

8

21%

DURABILTY

12

31%

OTHER

11

28%

TOTAL

39

100%

From the above graph we can say that the customers will be changing their brands mainly due to the durability cost and mileage and there are also other reasons for changing of the brand service availability, warranty and promotion techniques of the other brands.

FACTORS INFLUENCING CUSTOMER LOYALTY Quality

RESPONDENTS 78

Percentage 89%

Brand image Price Credit facility Relationship with dealer TOTAL

0 08 01 01 88

0% 9% 1% 1% 100%

from the above graphs the main factors that influence the customer loyalty is mainly quality about 89%of the customer ranks quality as no.1 in the factors that influence and the brand image influence is 0% and secondly the price is the other factor influences the customer loyalty and the credit facility relationship with the dealer influences very low in the case of customer loyalty.

THE TOP BRAND BASED ON RANKINGS

From the above graphs are drawn from the customers ranking about different tyre brands with respect to the Mileage, Durability, Availability, and Service. From the graphs we can note that Apollo is the market leader. considering the different factors the Apollo is in top position.

FINDINGs.....







For buying a tyre, a Truck customer would like to take advises from the other customers.

Market leader of truck tyres in VISHAKAPATNAM is APOLLO with 29%.

customers are really satisfied with the quality of the brand



Even though, APOLLO Tyre users are More in number they are satisfied with APOLLO products.

 Mileage was the key influencing factors for buying a tyre.



In this industry there is a little influence of advertising, the promotion of a brand is depend on a satisfied customer.

Swot analysis OF APOLLO STRENGTH: •

Well known throughout the world (70+ countries).

•

Strong product line.

•

Strong distribution channel.

•

Optimum load carrying as well as durability capability.

•

2nd largest player in Indian Tyre Industry.

WEAKNESS: •

At higher price end.

•

Less advertisement.

•

Unutilized the market scope.

OPPORTUNITY: •

Industrial sector is booming.

•

Service sector is accelerating.

•

Drastically change in infrastructure.

•

Market is expanding day by day.

•

Easy availability of loan.

•

Massive production of low price cars.

•

Increasing the number of Entrepreneur.

•

Economic growth is increasing.

•

Per capita income is growing.

THREATS: •

Chinese brands.

•

Increasing rates of retreaded tyres.

•

Rising rubber prices.

•

More number of competitors.

•

Less price strategy of the competitors.

•

Ban on over loading.

Suggestions by customers…

•

Most of the customer needs to enhance the service/durability quality. So that it can last for longer period.

•

Enhance the Retreading capability.

•

Heighten the load sustention potential. So that we can avoid the uneven bursting of tyres and also it is helpful for better steering in maximum loading time.

•

Reduce the price, so that it can affordable.

ANNEXTURE

Questionnaire Fleet Details :1. Name : 2. Name of the fleet :

3. No. of Vehicles : 4. Address : 5. Phone no : 6. Type of Vehicles 1. Goods 2. Constructions 3. Mining Passenger 7. Which type of load do you prefers ? 1. Under load

2. Normal load

4.

3. Over load

Customer opinion about brand 8. What type of Tyre do you purchase

1. Nylon

2. Radial 9.

Which brand of Tyres?

10. How long are you using this brand? 1. Six months

2. Two years

3. More than Two

years 11. How did you come to know about this brand? 1. Word of mouth 3.Advertisment

2. Sales Promotion

12. How is the quality of this brand? 1. Excellent

2.Good

13. Why do you prefer this brand? 1. Cost 2.Brand Image 4.Mileage 5. Retradability

6.Warranty

3.Average 3.Durability 7. After Sales service

8. Dealer’s Recommendation 14.

What is the average consumption of Tyres? Tyres (

)

15. Where do you purchase? Dealers Name:

Phone no:

16. Why do you purchase from there? 1. Credit Good Service

2.Good Will

3.Friend

4.Low Price

17. What is your previous brand? Brand ( ) 18. Why do you change this brand? 19. Rank the following factor you prefer while purchasing the Tyres 1. Quality

2. Brand Image

4. Credit Facility

3.Price

5.Realationship with dealer

20. Ranking of different brands Availability APOLLO MRF CEAT JK BIRLA

Mileage service

Durability

5.

IMPORTED

Bibliography Proper guidance and correct source form the pillar of any assignment which is applicable in every field. And for successful completion of my project the sources which I referred to were.

Data imbibed from:Websites:-

www.apollotyres.com www.google.com www.atmaindia.org