BRAND IMAGE WITH RESPECT TO PRICE LEADERSHIP FOR

APOLLO L.C.V & S.C.V TYRES, AT SHIMOGA

CHAPTER CONTENTS
Chapter 1

Introduction

Introduction
Statement of problem
Objectives of the Study
Scope of the Study
Methodology
Limitation
Chapter 2

Introduction to the Organization

History of the Organization

Financial Status of the Organization
Competitors of the Organization
Chapter 3 Product Profile
Chapter 4 A Theoretical Aspect of Brand Image with respect to
Price Concept
Chapter 5 Data Analysis and Interpretation
Chapter 6 Suggestions and Conclusion
Annexure
Questionnaire
Bibliography

Chapter 1
INTRODUCTION
Introduction
Statement of problem
Objectives of the Study
Scope of the Study
Methodology
Limitation

INTRODUCTION
The study centered to take strategic decisions in support of Apollo
tyres in the field of marketing. The main scope of this study is to
ascertain various methods to increase the sales volume of the concern.
The method includes regular product information to the buyers, creating
a brand position in the market and taking measures to make the brand
remain in its position. One of the important aspects of this study is also
to increase the market segment for the products.

In todays world of intense competition and rapid dynamism, all

the companies worldwide are tuning their focuses on the customer.
Suddenly, the customer had succeeded in capturing all the attention of
the companies towards him, so that the once famous maxim, customer
is the god has become so true and relevant today. There has been a
paradigm shift in the thinking of these companies and none other then
the customer has brought this about.

Earlier there was a sellers market, since goods and services were
in short supply and the sellers use to call the shots. But, ever since the

advent of the era of globalization, there has been total transformation in

the way the customers being perceived. Today, marketers are directing
their efforts in retaining the customers and customers base. Their focus
has shifted towards integrating the three elements people, service and
marketing.
The

customers

importance

has

assumed

imponderable

proportions in todays world, because of the inherent value that the

customers command. A customers can make or break a company. It is
the responsibility of every company to see that all its customers are
equally satisfied with them, for one single dissatisfied customer will tell
at least nine others about the dissatisfaction and will spark off a chain
reaction and spell doom for that company. In such scenario, retention of
the existing customers assumes diabolical proportion. Research has
thrown light on some important aspects of customers retention it has
been proved empirically that acquiring new customers can cost five
times more than the cost involved in satisfying and retaining current
customers.

In the past, the customers was taken for a ride, as there were not
many players in the fields, not much importance was attached to product
safety, quality, service and product appeal. The attitude of the
manufacture was that of caveat emptor. Thanks to the government
policies on liberalization, globalization and privatization, the market
scenario has changed today. Today, the customer has a host of defense
mechanism like the customers protection laws, regulation of the
government, the powerful hands of the organization, customers courts,
switching to substitute or competitors that offer at competitive prices,
etc. The maxim, caveat emptor has been replaced by caveat
venditor.

In the past, after sales service was consider as a cost center,

Companies were lethargic in attending to customers complaints.
Availability of trainee service personal and quality genuine spare parts
posed serious problems. However, with the rising competition, there
could not be much product differentiation, as price and quality were
comparable and latest technology was to each and every company in the
field. Since, there could not be much differential a tangible assets, the

companies concentrated on the intangible assets, namely the service

factor, which served as a major differentiator. Today after sales service
is an important aspect of every company, and it is no more considered as
a cost center, but considered as a profit center. Every organization strives
hard to retain its existing customers at any cost since it is five times
costly to get a new customers, then to retain an existing customers. Most
of the industries today use of information technology to best services to
their customers.

STATEMENT OF PROBLEM
Now a day marketing is characterized by capitation in every
field. There are number of products each having separate substitutes. A
manufacture has a Cleary identity what exactly the consumer needs and
what exactly the makes a product completely satisfy his needs and then
educate the consumer effectively to create a demand for the product.
This is evident from the marketing aimed at generating customs
satisfaction as the key to satisfy organization goals.
The modern consumer its intelligent enough to express exactly
what his requirements are and national enough to judge the requirement

of his needs. No manufacturer can think of a company is the sale of

goods rather then production. The customers needs have to be carefully
considered by the manufacture if he is to the top of the market.

OBJECTIVE OF THE STUDY

Such a study is part of my curriculum to complete management
Studies, I have to complete this part also. So while taking part in the
practical exposure by joining Apollo Tyres Limited for six weeks
training. I am fulfilling the objectives of my curriculum.

During this practical exposure of Six Weeks. I have collected

some important information for (about) Apollo Tyers ltd. at Shimoga.
This is important of management. This increase penetrability in the
market. In any marketing job this forms one of the important tools and
therefore to know the utility of such a tool is definitely one of the
important aims of this study.

 The main objective of study is to present conclusion and

necessary suggestions regarding consumer awareness relating to
Apollo Tyres.
The purpose of the study is to explore the market of Apollo Tyres
Ltd. and betterment of its Sale.
The objective of study is to describe the unique characteristics of
Apollo Tyres in Comparison to others.
To collect the information and their attitude from Tyres
customers.
To know the awareness level of customers of Apollo Tyres
specially.
To collect their ideas about future purchasing of Apollo Tyres.
The objective of the study is to develop sound inter personal
relation to get maximum output both customer and producer of
Apollo Tyres.
To know the latest grievance of Customers.

SCOPE OF THE STUDY

The scope of marketing research can be pointed out by a single
word, "Consumer Preference". It can be termed as the balance wheel as
the marketing system which harmonies the study and demand factors.

Marketing survey has wide scope and covers all aspects of

marketing. Broadly its scope can be classified in the following
categories :-

It is concerned with product of Apollo Tyres.

It is concerned with Sales and Distribution of Apollo Tyres.

Research on Promotional Policies of Apollo Tyres

Research on pricing of Apollo Tyres.

Business Economics Research of Apollo Tyres

It is concerned with buying behaviour of Apollo Tyres.

Last but not the least Brand Image of Apollo in market

METHODOLOGY
During the entire study, methods were followed which were found
to be most important :Personal Discussion
A lot of information on the subject, which were well known to the
different departments and branches of the company, were prevalent.
Academic went to these depts. And branches together, these information
from their respective heads.
Documentary Observations
Secondary sources like books, journals published and unpublished
materials from different departments of the company were consulted.

Field Observation :During the period I visited Shimoga market being sent by Apollo
Tyres Ltd. Shimoga to observe how the marketing operations were
being performed there.

The marketing strategies and operations are closely observed for

all these information I visited retailers dealers and as well as consumers

10

to assess the present market situation of the product of APOLLO TYRES

LTD.

Limitation

In this study has some limitations when I meat the customers was too
much busy with his own assignments as it was the period where market
was witnessing a lot dynamic changes like
Unusual price increase like 8-10% in last 3 months.
Under these circumstances or critical situations I face difficulties
which may affect my report directly or indirectly.
The study was confined to Shimoga only.
Time was the major constrain. Only limited sample size was possible
for such a vast research on such a period of time.
Interaction with the respondents was also limited due to their busy
work.
There was a chance that respondent will make assumptions while
filling the questionnaire.

11

Chapter 2
INTRODUCTION TO THE ORGANIZATION
History of the Organization
Financial Status of the Organization
Competitors of the Organization

12

INTRODUCTION TO THE ORGANIZATION

History of the Organization

Apollo Tyres straddles the Indian tyre industry much like the
Greek Sun God Apollo's four horse-drawn chariot races across the vast
expanse of the sky, symbolising the creation of light, hence knowledge
and truth. And like the Greek charioteer, Apollo Tyres has stood the test
of time on the four pillars of vision, integrity, quality and sheer
determination.
The history of Apollo Tyres dates back to 1974 when it was
incorporated as a company in Cochin, Kerala through the purchase of a
licence from the Ruby Rubber Works. Cochin by Mr. Mathew T.
Marattukalam, Jacob Thomas and his associates. In 1976, the company
was taken over by Dr. Raunaq Singh. Apollo's first manufacturing
facility (often referred to as the 'mother plant') is in Perambra, Cochin
where production commenced in 1977 with an installed capacity of
420,000 each of tyres and tubes.

13

The first 20 years of the company's existence were not easy. Those
were times when licences and quotas ruled the world of manufacturing
in a market dominated by multinational companies with access to
technology and machinery and deep pockets.
Therefore, soon after its inception, due to the huge investments
required, Apollo wiped out its net worth and became a BIFR company
during the Emergency years. However, Apollo Tyres was returned to its
owners during the Janata Government.
Apollo then used to make the entire gamut of tyres required for
scooters, bicycles, trucks and cars. However, the then core team, led by
Onkar Singh Kanwar, realized that to make an impact in the market and
become financially viable it had to become a dominant player in the
commercial vehicles segment. At the time, Modi Tyres had an
overwhelming market share and reputation. Extensive on-ground
research by the team allowed it to understand the areas in which Apollo
could make an impact.
The philosophy then was 'one product fits all', where regardless of
the kind of usage, the tyres truckers fitted on their vehicles were the

14

same. Team Apollo decided to known as the 'overload' segment and

produce tyres which could withstand the extra load the vehicles were
made to carry, while providing drivers with the crucial safety net. It was
a tyre called the Hercules which was the first of its kind. Later, products
like Amar, Loadstar and XT-7, XT-9 and XT-9 Gold were introduced,
products still enjoy consumer validation. In fact, XT-9 is the only tyre in
India to have sold more than one crore units, providing the superiority of
the product.
In later years, there have been many such first in Apollo's cap.
Apart from enjoying the distinction of being the first tyre company to
segment the market on the basis of load and mileage requirements, it has
been the first to introduce packaging for car tyres and tubes and also the
very first Indian company to introduce farm radial tyres. n other
innovative moves, Apollo is the first tyre company to run customer
loyalty and awareness programmes to enable them to derive optimal
benefits from their Apollo farm tyres, and also the first to launch
exclusive rural retail stores 'Apollo Tyre World' for truck tyres. Apollo
tyres Ltd. has another first to its credit being the first Tyre
Manufacturing Company Worldwide to be certified for B7799 given for

15

information security of IT systems. Another landmark has been the

successful implementation of SAP across the organisation for better
results and productivity.
"People deliver innovation
Innovations deliver success
A few of the differences our people made"

First Indian tyre company to launch exclusive branded outlets -- Apollo

Tyre World -- for truck tyres
First Indian tyre company to segment the market on the basis of load
and mileage requirements
First Indian tyre company to introduce packaging for car and twowheeler tyres and tubes
First Indian tyre company to run a customer loyalty programme
First Indian tyre company to introduce radial tyres for the farm
category
First tyre company in India to obtain ISO Certification for all its
operations

16

First Indian tyre company to produce H, V and W-speed rated tubeless

tyres
First Indian tyre company to run HIV-AIDS awareness and prevention
clinics for the trucking community
First Indian tyre company to support the creation of an Emergency
Medical Service in an Indian city
First Indian tyre company to execute an overseas acquisition
First Indian tyre company to reach a revenue of over US$ 1 billion
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

17

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
2006 Expansion of passenger car range to include 4x4 and all-terrain
tyres
2006 Acquired Dunlop Tyres International in South Africa and
Zimbabwe
2006 Opening of Apollo Tyres Health Care Clinic in Ukkadam, Tamil
Nadu
2006 Launch of DuraTread, treading material and solutions
2007 Launch of India's first range of ultra-high performance V and Wspeed rated tyres
2008 Launch of Regal truck and bus radial tyres
2009 Launch of DuraTyre, retreaded tyres from Apollo

18

2009 Launch of the Apollo Tennis Initiative and Mission 2018

The Future
At Apollo Tyres, they believe in being in control of their destiny.
They set ambitious targets and believe in stretching themselves to
outperform them. Therefore, the leadership position in the Indian market
notwithstanding, Apollo is now set to look overseas for new challenges.
Nearly all initiatives being taken at this point in time are geared to fuel
this ambition.

At home and abroad, Apollo is looking to not only consolidate its

leadership position in various segments through newer, high technology
products but also through consistent organic and inorganic growth
opportunities, in tyres and allied products. Becoming a leader in the
passenger car tyre segment is a priority as is the export of passenger car
radials. If the company continues to grow at the current pace, Apollo
expected to reach the US$1 billion mark in less than five years.
Continuous focus on cost control and operating efficiency remains the
hallmark of the company.

19

Adding to all this is the fact that radialisation in India is throwing

up fresh opportunities, as is the boom in road infrastructure and the
completion of the Golden Quadrilateral and the North-South-East-West
corridor. Therefore the future is optimistic with promises of a virtuous
cycle of growth.
Apollo has three tyre manufacturing facilities and one unit for the
production of tubes and flaps in four locations based in West and South
India. Apollo endeavour has been to have the widest spread of sales and
regional offices, along with stock points at locations which allow for
maximum customer reach and efficient supply chain management.
Apollo dealer or business partners are also chosen with great care.
Apollo's products are sold through a combination of outlets ranging from
exclusive dealerships to multi-brand and branded retail outlets.
The continuous upgradation of dealer knowledge is in Apollo's
interest and therefore their training is undertaken by the company. With a
dedicated field sales, technical and commercial force of 600, we feel that
we are best positioned to meet the customer specific needs.

20

Vision
A significant player in the global tyre industry and a brand of
choice, providing customer delight and continuously enhancing
stakeholder value.
Values

Guiding Philosophy
One of the vital facets of Apollos vision is the companys
endeavour to create lasting value for its stakeholders. True to its vision,

21

Apollo Tyres believes in making investments in people, productivity,

process and of course the planet. Its community programmes are all
targeted towards benefitting specific customer groups associated with the
companys business. This linkage ensures a targeted intervention which
have the ability to show results over time. A connection with better
business practices also makes each of its community programmes
sustainable over time.
The attempt towards creating a greener world is ever-evolving
in the processes it adopts in its manufacturing units, the raw materials
used, who they are sourced from and the tyres that are eventually sent to
customers.
The key areas of work relate to health, education, nurturing young
sporting talent and road safety and encompass customers, business
partners and employees.

22

Research and Development for Apollo Tyres

The state-of-the-art Research & Development Centre had its birth
at Perambra, Cochin and later on, it has grown to a substantial height and
stature at its present location at Limda, Baroda. From the hour of
inception, its goal has been to foster development and promote the
evolution of new technologies in the field of Tyre Science & Technology.
Recently company has tie ups with IIT's & IIM's for Rubber
Technologies.
All the activities of the centre are extensively supported by a
series of highly sophisticated equipment, which help the research
scientists develop products as per customers' specific requirements.
We have the facilities and expertise for:
Development of compounds for improved performance
Raw material development
Analytical research
Reverse engineering
Advanced design using CAD

23

 FEA modeling of tyres

Simulation testing of the designed product
Product validity & reliability studies

The different activities of the centre are being executed by a pool

of specialists from the arena of Polymer Science, Rubber Technology,
Inorganic & Organic Chemistry, Textile Technology, Physics and
Mathematics. Through a synergistic blend of knowledge, experience and
hard work, this multidisciplinary team of scientists are devoted to lead
the organisation towards an outstanding level of success. Currently, the
centre is aiming for further growth and is exploring unchartered areas of
research in the field of Tyre Technology that will provide Apollo Tyres
the edge in today's ultra-competitive global market scenario.

24

Financial Status of the Organization

The Board of Directors of Apollo Tyres Ltd today approved the
companys unaudited financial results for the 2nd quarter and the first 6
months of the financial year 2010-11. Of particular concern to the Board
is the spiraling prices of natural rubber to current all-time highs, which
have sharply impacted the Indian Operations. The Board appreciated the
efforts of the management and employees in maintaining the overall
growth trend, overcoming the difficulties of a lock-out in one plant in
India and a general tyre industry and port strike in South Africa,
alongside escalating rubber prices.
Half Yearly Performance Highlights
FY2010-11 (April-September) vs FY2009-10
Net sales at Rs 37.7 billion (Rs 3770 crore) from Rs 36.8 billion (Rs
3681 crore)
Operating profit at Rs 3.8 billion (Rs 388 crore) from nearly Rs 5
billion (Rs 498 crore)
Net profit at Rs 1.2 billion (Rs 127 crore) from Rs 2 billion (Rs 203
crore) the previous year
Quarterly Performance Highlights

25

Quarter 2 FY2010-11 (July-September) vs Quarter 2 FY2009-10

Net sales at Rs 19.5 billion (Rs 1949 crore) from Rs 20 billion (Rs
2046 crore)
Operating profit at Rs 1.86 billion (Rs 186 crore) from nearly Rs 2.9
billion (Rs 290 crore)
Net profit at Rs 532 million (Rs 53 cr) from Rs 1.3 billion (Rs 129 cr)
in the previous year

26

27

28

FINANCIAL HIGHLIGHTS

29

30

31

32

33

Winners of Apollo CV Awards 2011 announced

Dedicated to the star performers in the commercial vehicle industry
The 2nd edition of the Apollo CV Awards was successfully held
on April 5, 2011, in the western Indian city of Mumbai. The first-of-itskind Awards, for the commercial vehicle industry and its customers, seek
to recognise and honour the champions and stalwarts of the industry
people and organizations who established new benchmarks in not just
product performance and service, but who also created value for the
industry as a whole. The list of winners follows, in no particular order.
1. CV Maker Of The Year: Tata Motors Ltd
2. CV Of The Year: Mahindra Navistar MN25
3. Editors Choice, Iconic CV: Piaggio Ape
4. CV Man Of The Year: R Seshasayee, Managing Director, Ashok Leyland
Limited
5. Special Award: Tata Motors for being 1st to produce 100,000 CV's in 1
year
6. LCV Cargo Carrier Of The Year: Mahindra Maxximo
7. Emerging Fleet Operator Of The Year: S K Translines Pvt. Ltd
8. HCV Truck Of The Year, Prime Mover: Ashok Leyland U-4923
9. HCV Truck Of The Year, Rigid: Mahindra Navistar MN 25
10. Niche Applications Fleet Operator Of The Year: Transystem Logistics
Pvt. Ltd
11. Large Fleet Operator Of The Year: Darcl Logistics Ltd

34

12. LCV Passenger Carrier Of The Year: Force Motors Trip

13. HCV Bus Of The Year: Mercedes Benz India Multi-Axle Coach
14. Private Sector Bus Operator Of The Year: SRS Travels
15. Public Sector Bus Operator Of The Year: Bangalore Metropolitan
Transport Corporation
16. Technology/Best Practice Adopter Of The Year: CCI Logistics Ltd
17. Truck Application Builder Of The Year: AMW CV Application
18. Bus Application Builder Of The Year: Automobile Corporation Of Goa
Ltd
19. CV Technology Demonstrator Of The Year: Volvo Trucks (India) FH
520 Powertronic
20. CV Dealer Of The Year: Commercial Automobiles Pvt. Ltd
21. CV Component Of The Year: A4000 Pump, Bosch Ltd
22. CV Component Maker Of The Year: Brakes India Ltd
23. Fleet Enabler Of The Year: ICICI Bank Ltd

35

PRODUCT, QUALITY & TECHNOLOGY

Today, the challenge is to always stay ahead of competition. To think on one's
feet and deliver nothing less than perfection. At Apollo, we are changing the
rules of the game, and leading by example. Whether it is the development of
our own internal benchmarks for manufacturing excellence called Plant
Quality Assessment (PQA) or the introduction of tubeless tyres in 22.5 size
for the global Truck/Bus Radial market. The further development of bias tyres
and the first of its kind ultra large size Off The Road tyre manufactured at our
flagship plant at Limda herald the dawn of a new tomorrow. While significant
steps have been taken to become globally competitive, with the launch of
Amazer 3G & Amazer 3G Max, the journey of constant innovation and
implementation in the passenger car radial market is gaining momentum. A
testimony to the quality and manufacturing excellence initiative was the gold
certificate to Apollo at the India Manufacturing Excellence Awards in
December, 2008. Alongside technological enhancements, process related
developments are also of equal importance. At Apollo, the drive to achieve Six
Sigma competency has shown significant positive impact on financial savings.
These advanced production processes are of strategic importance and also help
in enhancing customer satisfaction, and contribute towards the achievement of
our long-term goals. To be at the forefront of the ever evolving radial
technology, testing & evaluation has been carried out on global tracks in
places like South Africa, Spain, Italy, Germany and Scandinavia, to factor
specific demands and climate conditions. For the Chennai project, technical
standards are ready and product development plan have been finalised. Wet
commissioning of equipment has also been undertaken. Several projects with
Universities in India and abroad are in development, for e.g. predictive testing

36

and evaluation of noise, simulation and design. In the Passenger Car Radial
segment, Apollo has commenced the development of the Run on Flat
Technology, and the unique development of the Winter Tyre.
Today, Apollo stands at the threshold of a significant inflection point one
which can position us firmly as a significant player in the global tyre industry.
In the Truck/Bus Radial segment, there has been initialization of
developmental activities to cater to various customer and global regulatory
requirements (for e.g. all wheel pattern, off the road pattern, economic
designs, premium mileage and usage of environment friendly materials).
There has also been a maturing of manufacturing process to high precision
levels to create products with a competitive edge in quality (for e.g. reduced
levels of tyre uniformity, constant indoor test results).
This approach will ensure common planning, execution and review for all
three systems ensuring synergy, effectiveness as well as huge reduction in
effort and costs. This approach will also help us to achieve and maintain 3
different certifications through 1 comprehensive system. These certifications
are ISO/ TS16949, ISO 14001 and OHSAS 18001. The Plant Quality
Assessment (PQA) Scale has also been developed by taking inputs from best
companies and models across the world. Most experts, including certifying
bodies have acknowledged that the Apollo PQA scale is more stringent than
any other available scale in the world.
To better integrate all processes, Apollo has decided to merge three
management

systems

such

as

Quality

Management;

Environment

Management; and Occupational Health and Safety System.

37

At Apollo, all challenges are a motivation to stay ahead, where the constant
endeavour is to evolve, be globally competitive, and achieve perfection in
product & processes.

38

Competitors of the Organization

List of competitors

MRF

CEAT

BRIDGESTONE
DUNLOP

J.K.Tyre
OTHERS

GOODYEAR

BIRLA

39

Management Structures.
Proprietor

Super visor

Mak. To city

Company MKT Rep

M. to city

M. to city

Computers (in charging ASAP)

[Apollo sales A/cing package).
Go down incharge

Office boy

Appointment: - They are direct Apollo company representations and

they are opining the local dealers as per company rules as norms.

40

The local dealer appointed by them are

1) MRT wheel zone: B.H Road Shimoga.
2) MRT Co: Garden Area.
3) Sapthagiri agencies: B.H Road
4) Shiva tyers and Unity Tyers: O. T. Road
5) Other districts & Taluk
Hassan, Chitradurga, Davanagere,
Bhadravthi, Sagar, Koppa, Sringeri, Tarikere, Chikkamangalur, Kadur,
Thirthahalli, Soraba

41

Chapter 3
PRODUCT PROFILE

42

PRODUCT PROFILE

Duramile
Delivers premium mileage with enhanced comfort
Excellent traction in both wet and dry conditions
Strong steel belts stabilise tread for high mileage

Rancer
Ideal for moderate load applications
Excellent traction for both on/off-road applications
Strong steel belt with flexible sidewall for longer
tyre life

Amazer XL LT
Reinforced radial construction for long life
Light truck construction for moderate loads
Good traction on highway terrain

43

Milestar
More tread rubber mass delivers high mileage
Dual-bead construction for heavy load applications
Very strong casing allows higher load-carrying and
multiple retreads
Loadstar
Special casing design with dual beads for heavyload applications
Optimised shoulder mass ensures cooler running
and improved performance

XT-9 Plus
Reinforced bead for better load-carrying capacity
Cap and base construction for higher mileage
Cooler-running tyre for improved life and multiple
retreads

Champion
High mileage in normal load applications
Cooler-running tyre ensures long life and more
retreads

44

Amar Gold
Extra deep tread with cooler running for high
mileage
Superior cut-resistant tread compound ensures
smooth wear and high casing value

Amar DLX
Superior cut-resistant tread compound ensures
longer life and maximum casing value
Stronger casing for high loads and multiple retreads

Cargo Rib
Designed for highway applications with excellent
traction in wet and dry conditions
Provides good cornering and braking
Design material provides longer life and wearresistance
Anchor
Excellent road grip and traction
Designed for strength
Reinforced casing and material ensures longer life
and multiple retreadability

45

LR-84
Unique design provides extra power and resistance
to cuts and cracks
Reinforced casing for high retredability and high
mileage
Provides excellent road grip and traction
Cargo SL
Performs well on both-carrying capacity
Higher load-carrying capacity
Excellent casing for multiple retreads

Amar DLX
Strong casing with stronger beads allows higher
load-carrying capacity
Cooler running ensures minimal failures
Strong carcass for multiple retreads

46

LUG
Over Load Technology

Loadstar Super
Key Features :
Load capability
Cut Resistance
Low failures
Casing Value
Cargo :
Sand/Stone chips
Marble/Granite
Ores/coal
Steel & iron
Wood
Loadstar Super Gold
Key Features :
Load capability
Cut Resistance
Low failures
Casing Value
Cargo :
Sand/Stone chips
Marble/Granite
Ores/coal
Steel & iron
Wood

47

Load & Mileage Technology

XT-7
Key Features :
Durable/Mileage
Load carrying capacity.
Less down time
Cut resistance
Casing value
Cargo :
Cement
Frozen food
Agri products
Aluminium/ Copper
Auto spares
Potatoes
Textiles

XT-7 Haulug
Key Features :
Durable/Mileage
Load carrying capacity.
Less down time
Cut resistance
Casing value
Cargo :
Cement
Frozen food
Agri products
Aluminium/ Copper
Auto spares
Potatoes

48

Textiles
XT-7 Gold
Key Features :
Durable/Mileage
Load carrying capacity.
Less down time
Cut resistance
Casing value
Cargo :
Cement
Frozen food
Agri products
Aluminium/ Copper
Auto spares
Potatoes
Textiles
Premium Mileage Technology
XT-9
Key Features :
High Mileage
Very Low failures
Casing Value
Retreadibility
Price
Cargo :
Veg & fruits
FMCG Goods
White goods
Paper goods
Sundry Cargo
Sea Food

49

Chemicals/Fertilizers
XT-9 Gold
Key Features :
High Mileage
Very Low failures
Casing Value
Retreadibility
Price
Cargo :
Veg & fruits
FMCG Goods
White goods
Paper goods
Sundry Cargo
Sea Food
Chemicals/Fertilizers
Regular Mileage Technology
Champion
Key Features :
Optimum Mileage
Retreadability
Price
Cargo :
Vehicle carrier
Parcel Services
Petroleum products
LPG Cylinders
Live stock

50

Champion DXL
Key Features :
Optimum Mileage
Economic in Price
Better Casing Value
Cargo :
Bus Passengers
Live & Stocks/Chicken feeds/Chicken

Champion Gold
Key Features :
Optimum Mileage
Retreadability
Price
Cargo :
Vehicle carrier
Parcel Services
Petroleum products
LPG Cylinders
Live stock

51

RIB
Load & Mileage Technology
Amar
Low failures

Durable/Mileage
Cut resistance
Casing value

Cargo
Veg & fruits
White goods
Sundry Cargo
Chemicals/Fertilizers

FMCG Goods
Paper goods
Sea Food

Amar Deluxe
Low failures

Durable/Mileage
Cut resistance
Casing value

Cargo
Veg & fruits
White goods
Sundry Cargo
Chemicals/Fertilizers

FMCG Goods
Paper goods
Sea Food

52

Premium Mileage Technology

Amar Gold

Low failures
Durable/Mileage
Cut resistance
Casing value

Cargo
Veg & fruits
White goods
Sundry Cargo
Chemicals/Fertilizers

FMCG Goods
Paper goods
Sea Food

Regular Mileage Technology

Amar AT Rib

Low failures
Durable/Mileage
Cut resistance
Casing value

Cargo
Veg & fruits
White goods
Sundry Cargo
Chemicals/Fertilizers

FMCG Goods
Paper goods
Sea Food

53

ORGANIZATIONAL STRUCTURE OF APOLLO Tyres Ltd.

(Head, Zonal Heads and Divisional Heads)

54

55

H ead
In te rn a l
A u d it

C h ie f
R ese a rc h &
T e c h n o lo g y

M anager
C o rp o ra te
R e la tio n s

C h ie f
F in a n c ia l
O ff ic e r

C h ie f
P ro je c ts

H ead
P u rch ase

C h ie f
G ro u p A d v is o ry
S e rv ic e s

U n it H e a d
P u n e P la n t

U n it H e a d
K e ra la F a c to rie s

U n it H e a d
L im d a P la n t

C h ie f
C o rp o ra te
A ffa irs

C h ie f
M a rk e tin g

D iv . H e a d
Q u a lity

C h ie f S tra te g y
&
B u s in e s s O p e ra tio n s

C h ie f In d ia n O p e r a tio n s

C h ie f O p e ra tin g O ffic e r

C h ie f E x e c u tiv e O ffic e r

C h ie f
HR

H ead IT

Chapter 4
A THEORETICAL ASPECT OF BRAND IMAGE WITH
RESPECT TO PRICE CONCEPT

56

A THEORETICAL ASPECT OF BRAND IMAGE WITH

RESPECT TO PRICE CONCEPT
A brand is a collection of images and ideas representing an
economic producer; more specifically, it refers to the descriptive verbal
attributes and concrete symbols such as a name, logo, slogan, and design
scheme that convey the essence of a company, product or service. Brand
recognition and other reactions are created by the accumulation of
experiences with the specific product or service, both directly relating to
its use, and through the influence of advertising, design, and media
commentary. A brand is a symbolic embodiment of all the information
connected to a company, product or service. A brand serves to create
associations and expectations among products made by a producer. A
brand often includes an explicit logo, fonts, color schemes, symbols and
sound which may be developed to represent implicit values, ideas, and
even personality. The key objective is to create a relationship of trust.
The brand, and "branding" and brand equity have become
increasingly important components of culture and the economy, now
being described as "cultural accessories and personal philosophies".

57

In non-commercial contexts, the marketing of entities which

supply ideas or promises rather than product and services (e.g. political
parties or religious organizations) may also be known as "branding".

Concepts
Some marketers distinguish the psychological aspect of a brand
from the experiential aspect. The experiential aspect consists of the sum
of all points of contact with the brand and is known as the brand
experience. The psychological aspect, sometimes referred to as the brand
image, is a symbolic construct created within the minds of people and
consists of all the information and expectations associated with a product
or service.

Marketers engaged in branding seek to develop or align the

expectations behind the brand experience (see also brand promise),
creating the impression that a brand associated with a product or service
has certain qualities or characteristics that make it special or unique. A
brand is therefore one of the most valuable elements in an advertising

58

theme, as it demonstrates what the brand owner is able to offer in the

marketplace. The art of creating and maintaining a brand is called brand
management. This approach works not only for consumer goods B2C
(Business-to-Consumer), but also for B2B (Business-to-Business), see
Philip Kotler & Waldemar Pfoertsch.

A brand which is widely known in the marketplace acquires brand

recognition. When brand recognition builds up to a point where a brand
enjoys a critical mass of positive sentiment in the marketplace, it is said
to have achieved brand franchise. One goal in brand recognition is the
identification of a brand without the name of the company present. For
example, Disney has been successful at branding with their particular
script font (originally created for Walt Disney's "signature" logo), which
it used in the logo.

Consumers may look on branding as an important value added

aspect of products or services, as it often serves to denote a certain
attractive quality or characteristic (see also brand promise). From the
perspective of brand owners, branded products or services also

59

command higher prices. Where two products resemble each other, but
one of the products has no associated branding (such as a generic, storebranded product), people may often select the more expensive branded
product on the basis of the quality of the brand or the reputation of the
brand owner.

Brand name
The brand name is often used interchangeably with "brand",
although it is more correctly used to specifically denote written or
spoken linguistic elements of a brand. In this context a "brand name"
constitutes a type of trademark, if the brand name exclusively identifies
the brand owner as the commercial source of products or services. A
brand owner may seek to protect proprietary rights in relation to a brand
name through trademark registration. Advertising spokespersons have
also become part of some brands, for example: Mr. Whipple of Charmin
toilet tissue and Tony the Tiger of Kellogg's.

60

The act of associating a product or service with a brand has

become part of pop culture. Most products have some kind of brand
identity, from common table salt to designer clothes.

Brand identity
How the brand owner wants the consumer to perceive the brand and by extension the branded company, organisation, product or service.
The brand owner will seek to bridge the gap between the brand image
and the brand identity.[2] Brand identity is fundamental to consumer
recognition and symbolizes the brand's differentiation from competitors.

Brand identity may be defined as simply the outward expression

of the brand, such as name and visual appearance.[3] Some practitioners
however define brand identity as not only outward expression (or
physical facet), but also in terms of the values a brand carries in the eye
of the consumer. In 1992 Jean-Noel Kapferer developed the Brand
Identity Prism, which charts the brand identity along a constructed
source and constructed receiver axis, with externalization on the one side
and internalization on the other. On the externalization side brand

61

identity consists of "physical facet", "relationship" and "reflected

consumer". On the internalization side brand identity consists of
"personality", "culture (values)" and "consumer mentalisation". In this
respect Kapferer positions brand personality as one factor within brand
identity.

Brand personality
Brand personality is the attribution of human personality traits to a
brand as a way to achieve differentiation. Such brand personality traits
may include seriousness, warmth, or imagination. Brand personality is
usually built through long-term marketing, as well as packaging and
graphics.

Brand promise
Brand promise is a statement from the brand owner to customers,
which identifies what consumers should expect from all interactions with
the brand. Interactions may include employees, representatives, actual
service or product quality or performance, communication etc. The

62

brand promise is often strongly associated with the brand owner's name
and/or logo.

Brand value
Brand equity or brand value measures the total value of the brand
to the brand owner, and reflects the extent of brand franchise.

A brand can be an intangible asset, used by analysts to rationalize

the difference between a company's "book value" and market value. For
example, the market value of a company can far exceed its tangible
assets (physical assets owned by the company, such as stock or
machinery), and its brand value can account for some of the difference.
Up to 85 percent of a companys market value might be intangible
(for example know-how, existing client relationships), and Interbrand, a
brand consultancy, states that tangible assets may account for less than
five percent of a companys market value.

Brand value, especially in the case of consumer product brands,

may arise out of customer loyalty. Brand value may also arise in terms of

63

staff retention benefits (e.g. the ability of the company to attract and
retain skilled and/or talented employees offering competitive salaries).

Campaigning groups may deliberately target a companys brand

value to force a company into adopting a certain position or practices.
Some campaign groups have thought to do this by deliberately
subverting a brands image, logo or message, creating a negative
association among consumers. This attack may be visual, as pioneered
by groups such as Adbusters, or focusing on the message.

Brand monopoly
In economic terms the "brand" is, in effect, a device to create a
"monopoly" or at least some form of "imperfect competition" so
that the brand owner can obtain some of the benefits which accrue to a
monopoly or unique point of sale, particularly those related to decreased
price competition. In this context, most "branding" is established by
promotional means. However, there is also a legal dimension, for it is
essential that the brand names and trademarks are protected by all means
available.

64

In all these contexts, retailers' "own label" brands can be just as

powerful. The "brand", whatever its derivation, is a very important
investment for any organization

Branding policies
There are a number of possible policies:

Company name
Often, especially in the industrial sector, it is just the company's
name which is promoted (leading to one of the most powerful statements
of "branding"; the saying, before the company's downgrading,).

In this case a very strong brand name (or company name) is made
the vehicle for a range of products or even a range of subsidiary brands.

65

Individual branding
Individual branding, also called multibranding, is the marketing
strategy of giving each product in a product portfolio its own unique
brand name. This is contrasted with family branding in which the
products in a product line are given the same brand name. The advantage
of individual branding is that each product has a self image and identity
that's unique. This facilitates the positioning process. That means that
there are less Halo-effects and one can position all products differently
without making trade-offs.

Attitude branding
Attitude branding is the choice to represent a larger feeling, which
is not necessarily connected with the product or consumption of the
product at all. Marketing labeled as attitude branding include that of
Nike, Starbucks, The Body Shop, Safeway, and Apple Computer. In the
2000 book, No Logo, attitude branding is described by Naomi Klein as a
"fetish strategy".

66

"No-brand" branding
Recently a number of companies have successfully pursued "NoBrand" strategies, examples include the Japanese company Muji, which
means "No label, quality goods" in English. Although there is a distinct
Muji brand, Muji products are not branded. This no-brand strategy
means that little is spent on advertisement or classical marketing and
Muji's success is attributed to the word-of-mouth, a simple shopping
experience and the anti-brand movement. Other brands which are
thought to follow a no-brand strategy like Muji, does not brand its
products.

Derived brands
In this case the supplier of a key component, used by a number of
suppliers of the end-product, may wish to guarantee its own position by
promoting that component as a brand in its own right.

67

Brand development
In terms of existing products, brands may be developed in a
number of ways:

Brand extension
The existing strong brand name can be used as a vehicle for new
or modified products; for example, many fashion and designer
companies extended brands into fragrances, shoes and accessories, home
textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc.

Multi-brands
Alternatively, in a market that is fragmented amongst a number of
brands a supplier can choose deliberately to launch totally new brands in
apparent competition with its own existing strong brand (and often with
identical product characteristics); simply to soak up some of the share of
the market which will in any case go to minor brands. The rationale is
that having 3 out of 12 brands in such a market will give a greater
overall share than having 1 out of 10 (even if much of the share of these

68

new brands is taken from the existing one). In its most extreme
manifestation, a supplier pioneering a new market which it believes will
be particularly attractive may choose immediately to launch a second
brand in competition with its first, in order to pre-empt others entering
the market.

Individual brand names naturally allow greater flexibility by

permitting a variety of different products, of differing quality, to be sold
without confusing the consumer's perception of what business the
company is in or diluting higher quality products.

Once again, Procter & Gamble is a leading exponent of this

philosophy, running as many as ten detergent brands in the US market.
This also increases the total number of "facings" it receives on
supermarket shelves. Sara Lee, on the other hand, uses it to keep the
very different parts of the business separate from Sara Lee cakes
through Kiwi polishes to L'Eggs pantyhose.

69

Small business brands

Branding a small or medium sized business (SME) follows
essentially the same principle a branding larger corporation. The main
differences being that small businesses usually have a smaller market
and have less reach than larger brands. Some people argue that it is not
possible to brand a small business, however there are many examples of
small businesses that became very successful due to branding.

Own brands and generics

With the emergence of strong retailers the "own brand", a retailer's
own branded product (or service), also emerged as a major factor in the
marketplace. Where the retailer has a particularly strong this "own
brand" may be able to compete against even the strongest brand leaders,
and may outperform those products that are not otherwise strongly
branded.

Concerns were raised that such "own brands" might displace all
other brands, but the evidence is that at least in supermarkets and

70

department stores consumers generally expect to see on display

something over 50 per cent (and preferably over 60 per cent) of brands
other than those of the retailer.

The strength of the retailers has, perhaps, been seen more in the
pressure they have been able to exert on the owners of even the strongest
brands (and in particular on the owners of the weaker third and fourth
brands). Relationship marketing has been applied most often to meet the
wishes of such large customers (and indeed has been demanded by them
as recognition of their buying power). Some of the more active
marketers have now also switched to 'category marketing' - in which
they take into account all the needs of a retailer in a product category
rather than more narrowly focusing on their own brand.

At the same time, probably as an outgrowth of consumerism,

"generic" (that is, effectively unbranded goods) have also emerged.
These made a positive virtue of saving the cost of almost all marketing
activities; emphasizing the lack of advertising and, especially, the plain

71

packaging (which was, however, often simply a vehicle for a different

kind of image).

72

Chapter 5
DATA ANALYSIS
and
INTERPRETATION

73

Data Analysis and Interpretation

Due to rapid changes in Technology, Competitor and Consumer
preferences a company can not to stick solely with its existing products
and services. Customers want the new and improved product that comes
about competitor. A company may obtain new product development in
company's own research and development. To serve this purpose
"Apollo Tyres" has Research and development department which
develops new products as per the demand of the market. To improvise
this products or services they collects information from the research
person about their competitors products.
Apollo Tyres is the largest tyre manufacturing company in India.
It provides good tyres to their customers.
My extensive survey is based on questionnaire having closed ended
questions given by the organization "Apollo Tyres". During conducting
survey views of the customers who have heavy motor vehicle presently.
The sample size was 65 from the Vehicle owner, and large number of
fitment

survey.

Main

view

was

given

to

know

the

satisfaction/dissatisfaction of the customer who are presently using Tyres

74

from their existing company as well as what is their main expectation

from Apollo Tyres.
1. Which Brand of Tyres you use in Lug Pattern?
Company Name
Apollo
MRF
J.K
Ceat
Birla
Others

No. of Respondents
30
25
17
13
10
5

Brand of Tyres you use in Lug Pattern

75

2. Which Brand you use in RIB Pattern?

Company Name
Apollo
MRF
J.K
Ceat
Birla
Others

No. of Respondents
30
25
17
13
10
5

Brand you use in RIB Pattern

76

3. In case of Apollo, rank the following ?

Company Name
Quality
Mileage
Retired ability
Claim Settlement
Price

Ranking
1
2
3
4
5

Percentage
52%
25%
10%
8%
5%

77

4. In case of other Brand what is the reason for choosing other brand ?
Reason
Price Sensitivity
Mileage
Service (after sale)
Credit

No. of Respondents
32
27
23
18

78

5. Have you heard 2 days "Claim Samadhan" by Apollo ?

Opinion
Yes
No

No. of Respondents
75
25

Heard 2 days "Claim Samadhan" by Apollo

79

6. Your Purchase on:

Mode of payment
Cash
Credit
Both

No. of Respondents
50
50
100

80

7. Does Company's Dealer help in choosing the Brand as per your

requirement ?
Opinion
Yes
No
Both

No. of Respondents
25
50
20

Company's Dealer help in choosing the Brand

81

8. Following table shows Market share of different company in

Shimoga.

Company Name
Apollo
MRF
J.K.
Ceat
Birla
Total

Sales Tyres
52
25
10
8
5
100

%
52%
25%
10%
8%
5%
100%

Market share of different company in Shimoga

82

MARKET SHARE OF AS PER FITTMENT SURVEY

Company Name

Fitted Tyres

% Share

Apollo

50

50%

MRF

24

24.50%

J.K.

8.75%

Ceat

5%

Birla

4.50%

Other

7.50%

Total

100

100%

83

MARKET SHARE AS PER FITTMENT SURVEY IN LOCAL

MARKET FOR LUG
Company Name
Apollo
MRF
J.K.
Ceat
Birla
Other
Total

LUG
50
25
10
5
5
5
100

% Share in lug tyres

50%
25%
10%
5%
5%
5%
100%

84

MARKET SHARE AS PER FITTMENT SURVEY IN LOCAL

MARKET FOR RIB TYRE
Company Name
Apollo
MRF
J.K.
Ceat
Birla
Other
Total

RIB
50
24
7
5
4
10
100

% Share in lug tyres

50%
24%
7.5%
4.5%
4%
10%
100%

Chapter 6
SUGGESTIONS AND CONCLUSION

85

Chapter 6
Suggestions and Conclusion

86

Suggestions and Conclusion

Suggestions
The suggestions from the consumers to the tyre company are following.

Some consumer are unsatisfied with the price because competitors

product price are less than Apollo, So company should pay
attention in their mind on price.

Company should provide more mileage of tyres because

overloading has been imposed by the government.

Company should provide credit facility because customer

demands this type of facility.

The problem of Apollo consumers are lack of adequate

promotional schemes. Dealers don't provide adequate information
in the support of the Apollo brands. They see their margin of
profit alone.

Some schemes should be provided by company. It is good

technique for sales promotions.

Company should give special attention after sales service of their

customers.

87

Conclusion
After conducting survey at Shimoga I have reached these conclusion.

Apollo tyre is the market leader in the LCV&SCV segment

followed by MRF, J.K., Birls, Ceat.

Apollo Tyres brand XT-7 and Amar are market leader at Shimoga
Urban and Rural Area.

XT-7 is Lug tyres and Amar RIB tyres, Most of the customers are
satisfied with the performance of both tyres.

Apollo 70% customers have positive and 30% customers have

negative attitude in support of preference of Apollo tyre at
Shimoga.

Customer's awareness level is better at Shimoga area.

Apollo tyres is the first tyre company which has launched new
scheme to solve the claim within 2 days.

Most of the customers are unsatisfied with this scheme. Because

dealers do not provide them this type of facility at their disposal.

88

Annexure
Questionnaire
Bibliography

89

Questionnaire
Dear sir/madam,
I am student of Sahyadri Arts and Commerce College, Shimoga. As
part of the curriculum of BBM degree, I am conducting a survey to
prepare project report on BRAND IMAGE WITH RESPECT TO
PRICE LEADERSHIP FOR APOLLO L.C.V & S.C.V TYRES, AT
SHIMOGA. Therefore I kindly request you to spare some of the
precious time to answer the following question.

Yours
Manjunath G.T
1. Name : ............................................................
2. Address : ................................................................................
...........................................................................................
3. Contact No..............................................................................
4. How many vehicle you have (LCV/SCV) ?
(a)

(b)

(c)

(e)

above 4

90

5. Which Brand of tyres you use in Lug Pattern?

(a)

Apollo

(b)

MRF

(c)

J.K.

(d)

Ceat

(e)

Birla

(f)

Others

6. Which Brand you use in Rib Pattern?

(a)

Apollo

(b)

MRF

(c)

J.K.

(d)

Ceat

(e)

Birla

7. In case of Apollo, rank the following according to priority

a)

Mileage

............................

b)

Price

............................

c)

Quality

............................

d)

Retread ability .........................

e)

Claim Settlement .....................

91

8. In case other brand what is the co region for choosing other brand
a)

...................................

b)

......................................

c)

....................................... d)

.......................................

9. Have you heard 2 days "Claim Settlement" by Apollo.

(a)

Yes

(b)

No

10.Your Purchase on :
a)

Cash

b)

Credit

c)

Both

11.Does Company's Dealer help in choosing the Brand as per your

requirement?
(a)

Yes

(b)

No

12.How do you know about this tyre?

(a) Through shop

(b) Friends

(c) Advertisement

(d) Other resources

92

13.Are you satisfied with Company claim Policy?

(a)

Yes

(b)

No

14.Apollo tyres are easily available in market?

(a)

Yes

(b)

No

15.Mostly when you change your vehicle tyre?

(a) After 1 year

(b) After 2 year

(c) After 3 year

(b) After 4 year

16.In case of not using Apollo Brand reason for it.

a) _____________________________
b) _____________________________
17. Give some Suggestions
_______________________________________
Date:
Place:

Signature

93

BIBLIOGRAPHY

Marketing Management

Philip Kotler

Statistical Investigation

Gupta B.N.

Consumer behavior and action -

Assel Henry

Magazines and Reports

Business World
Business India
Advertising Marketing
www.apollotyres.com
www.google.com

94