smm apollotyres group3
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Apollo strategyTRANSCRIPT
7/17/2019 SMM ApolloTyres Group3
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Strategic Marketing : Tyres Industry (Apollo Tyres)
Group-3(April-201)
!o"it #alia ( !oll $o% 31)
&ig'iay Sing" ( !oll $o% 1)
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Indian Tyres Industry #"o all are t"e key players*
• Turno+er o, Indian Tyre Industry : !s% 3000 .rores
• Tyre /roduction (Tonnage) : 1 lak" M%T%
• $uer o, tyre copanies: 3
•Industry .oncentration : 10 4arge tyre copanies account ,or o+er5 o, total tyre production%
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Indian Tyres Industry S#6T Analysis
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.opetiti+e 4andscape
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Indian Tyres Industry 7ias +s !adial Tyre
• Radialization Levels (As a % of total tyre production)
• Passenger Car tyres 98%
• Light Commercial ehicles !"%
• #eavy ehicles ( $ruc & 'us ) 8%
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Soe 6ser+ations 8 9uestions*
• It is e+ident t"at argins are lo and arket is a purely aout
econoies o, scale%
• &espite t"e loest prices in arket "y Apollo tyres is not ale to
gain t"e leaders"ip position in /.! tyre segent*• &oes rand 8 positioning plays a role*
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Apollo Tyres Situation Analysis ( .;s)
.opany
.onte<t
.opetition
.ollaorations
.ustoer
• Apollo tyres is t"e orld 1=t" iggest tyre anu,acturer and as estalis"ed in1=2
• 6+er 1>000 eployees and anu,acturing presence in Asia ?urope and A,rica
• A+ailale in o+er 100 .ountries it" anu,acturing ,acilities
• > @ey rands : Apollo @aien Maloya !egal and 'redestein
• Generally interested in ileage o,,ered price type o, tec"nology used productpresence in arket and ser+ice o,,ered
• &eciding Bactor is .ost +ersus ene,it and generally ased on ord o, out"purc"ase
• $etork o, o+er 000 dealers"ips in India
• 6perate t"roug" a netork o, randed e<clusi+e or uti-product outlets
• /artners ,or ra aterial : Aditya 7irla ?<<on Moil Styron /er,orance ,iersCSA%
• R* : Market leader ,or 21 years Birst tyrecopany to reac" turno+er o, 0 illion strongassociation it" sports Good rand iage
• C+A$ , Most +isile ,ace o, Indian tyre industry itreac"ed 10 illion e<ports enc"ark in 2012
• -. $yres , Market leader in 7usD Truck segent
all radial plant coing up in ."ennai
• 6t"er .opetitors include 7ridgestone .ontinentaland Goodyear
•Increasing sales o, /assenger and .oercial +e"icles in de+eloping countries due to ainly socioeconoic ,actor
•Go+t policies like 4ocal 7ody Ta< ( 47T) and ot"er,actors like decrease in rain,all "ad reduced deandin agricultural sector
•Tec"nological ad+anceent like sel, in,lation GreenTyres !un ,lat tyres is in,luencing t"e arket
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/egment name Passenger Car01ners
Commercial ehicle01ners
0ff #igh1ay ehicle2 $ractor01ners
3ndustrial and#eavy ehicle
$1o 4heelers
Geograp"ic."aracteristics
Cran .ities 7eteen .ities :Mig"t need totra+el t"roug"rural stretc"es
/redoinantly in!ural India
At Industrial sitesBor eg% .onstructionsites Mine e<ca+ation
7ot" ruraluran and sei-uran
&eograp"icBactors (Age)
2 >0 2 - >0 2 >0 2 >0 Ao+e 20
&eograp"icBactor ( Incoe)
Ao+e 3 4ak"s Ao+e 10 4ak"s Ao+e 3 4ak"s $A ( Industry6ned)
Ao+e 0T"ousand
/rincipal 7ene,itSoug"t
!eliaility&uraility BuelMileage /rice
Sa,ety!eliaility&uraility 'alue,or oney
4ong li,e 9uality?asyaneu+eraility
7etter Grip 4ong li,e9uality
4o .ostSuperior grip!eliaility
6ccasion Grudge asedpurc"ase
/riarily tie ased ser+icingD!eplaceent
Grudge ased/urc"ase
."anged onreEuireent
Grudge asedpurc"aseF Tie ased ser+icing
7rands Ba+ored M!B7ridgestone Apollo.ontinental.?AT Mic"elin
M!B Apollo.ontinental
Apollo Tyres Mic"elin 7ridgestone M!B7ridgestone.?AT
Apollo Tyres Segentation 8 Target Markets
.urrentBocus
InitialBocus $o Bocus
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Apollo Tyres - Analysis
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Apollo Tyres - Analysis
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T"e 7ig #ar Apollo Tyres +s M!B
• M!B ep"asies on /ull strategy
• Apollo ep"asies on /us" strategy
• M!B is ,ocusing on capturing local arket
ore e,,ecti+ely
• Apollo "as started looking ,or ne arkers
in ?urope
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Marketing .apaigns
• $e gloal rand uilding
capaign ,ocused toards
gloal tyre rand and sa,ety
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Marketing Strategy Apollo Tyres
• IndiaHs s"are o, turno+er t"roug" e<ports "as een around
>5%#e are no orking toards increasing t"e ,ocus o, o+erseas
arkets suc" t"at t"e total s"are ill go up to >05 .?6 Apollo
Tyres
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!ecoendations
• Apollo s"ould ,ocus on e<port usiness Ipro+e t"eir rand
aareness to ecoe a Gloal rand %
• S"ould spend in !8& to ake alternate aterial in place o, natural
ruer to signi,icantly reduce aterial cost
• S"ould ,ocus on ne tec"nologies specially ,or passenger cars like
sel, in,lation Green Tyres !un ,lat tyres
• Apollo tyres s"ould de+ise a strategy to enter t"e to "eeler
arket as t"ere is a "uge arket sie "ic" it "as not een ale to
tap currently%