APO

7 Institutional Area
Sector 32, Gurgaon 122001

Haryana, India
T: +91 124 2721000
Dated : 06-Aug-2010
TO WHOMSOVER IT MAY CONCERN
This is to certify that Mr. Prahlad, a student of Master of Business

Administration, has successfully completed his two month Summer
Training with effect from 10th June 2010 to 5th Aug. 2010, in the field of
Marketing under our guidance.
During this period his commitment and dedication has been highly
appreciated in the Organization.
We wish him a bright and prosperous future.
For Apollo Tyres Limited.
Mr. Ajay Wadhawan

District Incharge,
Apollo House
Sector 32, Gurgaon,
Apollo House, 7 Institutional Area, Sector 32, Gurgaon 122001

Haryana, India T: +91 124 2721000
ON
“MARKETING”
Submitted in partial fulfillment of the requirement of the

award of
Degree in Bachelor in Business Administration
From
Maharishi Dayanand University, Rohtak
B.B.A (VTH) SEM

(2010)
SUBMITTED TO:
SUBMITTED BY:
Lecturer in Management ARUN KUMAR
Mr. Brijesh Bhardwaj Roll No: BB08004
Regn no. 08-AITF-4304
ADVANCED INSTITUTE OF
TECHNOLOGY & MANAGEMENT, DELHI
MATHURA ROAD, PALWAL,
FARIDABAD.
ACKNOWLEDGEMENT
This project is the result of contribution received from a number of

people, both implicitly and explicitly. Never can it be claimed as my
individual effort. No amount of words written will be enough and
adequate to acknowledge all the people who offered their help and
support while preparing this report.
First and foremost I offer my gratitude to Mr. Girish Chandra Das

,rict Manager, Apollo Tyres ltd. My organizational guide, for giving me
opportunity to work for the organization. I am extremely thankful to him
for his untiring support, guidance and valuable suggestions and
sincerely appreciate his efforts in ensuring enough exposure to learn
as much as possible during the six weeks at Apollo Tyres Limited,
Gurraon.
[Arun
Kumar]
DECLARATION
I hereby declare that the work which is being presented in the project
report entitled MARKETING in the partial fulfillment of the requirement for
the award of Bachelor of Business Administration from Advanced
Institute of Technology & Management, Delhi Mathura Road, Palwal,
Faridabad is record of my own work and was carried for a period of six
weeks under the guidance of to Mr. Girish Chandra Das ,Rict Manager, Apollo
Tyres ltd of commercial work of Marketing Department Appolo Tyres Ltd
India.
Arun Kumar
B.B.A 5th Sem.
PREFACE
It is integral part of our BBA Program to undergo TRAINING in a

business organization with objectives as understated:
To acquire a better understanding of business environment under the

professional guidance of practicing.
To blend the practical experience acquired in the business concern

with the theoretical knowledge received in classrooms and apply them
in actual business situations soon after the completion of BBA
program.
To perform a propound analysis of functioning of various departments

of the business concern where I undergo the training.
In order to achieve the above mentioned objectives my training

was arranged in “Apollo Tyre Ltd. Gurgaon”.
CONTENT
Page No.
Chapter I: .....................................................................................1
EXECUTIVE SUMMARY...............................................................1
1.1. Objectives:..........................................................................................1
1.2. Scope: ................................................................................................1
1.3. Limitations:........................................................................................2
1.4. Methodology:....................................................................................2
1.5. Findings: ............................................................................................3
1.6. Suggestions:.......................................................................................4
Chapter II: PROFILE OF THE COMPANY...................................5
2.1. The Apollo Vision:....................................................................5
2.2. Core Values:............................................................................5
2.3. Apollo’s Goals:.........................................................................5
2.4. Brief History Apollo Tyres Ltd.:................................................5
2.5. Highlights:................................................................................7
2.6. General information:................................................................7
2.7. A profile of its operations in the North- East:...........................8
2.8. Fact file:..................................................................................8
2.9. After sales service at Apollo Tyres Limited:............................9
2.10. Organisational chart of Apollo Tyres Limited:.....................12
2.11. A brief description of pneumatic tyres:
......................................................................................................12
2.12. Product profile:.....................................................................16
Chapter III: RESEARCH METHODOLOGY................................18
3.1. Objective:...............................................................................18
3.2. Scope:....................................................................................18
3.3. Type of data: ........................................................................18
3.4. Methodological sequence:.....................................................18
Chapter IV: .................................................................................23
OTHER MAJOR CORPORATE PLAYERS.................................23
4.1. MRF Limited: ........................................................................23
4.2. J.K. Industries Limited:.........................................................26
4.3. CEAT Limited:........................................................................29
4.4. Goodyear India Limited:........................................................32
4.5. Birla Tyres:............................................................................36
Chapter V: FINDING AND ANALYSIS.......................................40
5.1. From the fitment survey:........................................................40
5.1.1 Market share of HCV tyre..............................................................40
5.1.2 Market share of LCV Segment.......................................................41
5.2. From the customer survey:....................................................41
5.2.1 For best mileage:............................................................................42
5.2.3 Rankings for best retreadibility:.....................................................43
5.2.4 Rankings for Least Probability of CUT EXPANSION:................45
5.2.5 Rankings for Least probability of air formation:...........................47
5.2.6 Rankings for best tyre for heavy loading:......................................48
5.2.7 Rankings for best Claim Settlement and After Sale Policy:..........51
5.2.8 Rankings for best Sales Promotion Devices..................................52
5.3 From the Dealers Survey:.......................................................53
5.3.2 Findings from the 4 point Liekart Scale.........................................54
5.3.3 Growth of HCV tyre Industry in North-East Market:....................57
Chapter VI: SWOT ANALYSIS...................................................59
6.1 Strengths:...............................................................................59
6.2. Weaknesses:.........................................................................60
6.3. Opportunities:........................................................................61
6.4. Threats:..................................................................................62
Chapter VII: SUGGESTION AND CONCLUSIONS...................63
7.1. Suggestions...........................................................................63
...............................................................................................................63
7.2. Conclusions: .........................................................................65
BIBLIOGRAPHY...................................................................................67
Appendix I: QUESTIONNAIRE............................................................68
Appendix II: QUESTIONNAIRE...........................................................70
Appendix III: DISTRIBUTION NETWORK.........................................72
Appendix IV: FINANCIAL RESULT....................................................73
................................................................................................................73
Chapter I:
EXECUTIVE SUMMARY
Author: Mahan Jyoti Kashyap
New Delhi Institute of Management,

Tughlakabad Institutional Area, New Delhi-62.
Project Title: Market growth of Apollo Tyres Limited vis-à-vis other tyre
companies in the North-East market (in the HCV tyre
segment).
Organization: Apollo Tyres Limited, Guwahati.
Duration: 2 months (3rd May- 3rd July, 2004).
Organizational Guide: Mr. Girish C. Das

District Manager
Apollo Tyres Limited, Guwahati
1.1. Objectives:
(a) To analyse the market growth of Apollo Tyres Ltd. from

2000-01 to 2003-04 in the HCV tyre segment in the North-East
market.
(b) To determine the present market share of the major players in
the North-East market.
(c) To study the purchase parameters and after sales service
provided by Apollo Tyres Ltd.
1.2. Scope:
To aid in formulating a marketing strategy that would help in

further consolidation and expansion of customer base of Apollo Tyres
Ltd. in the North-East market.
1.3. Limitations:
• Sampling error might have occurred because no sample
is a perfect representation of a given population unless the
sample size equals the population.
• Response error might have occurred. Respondents-
intentionally or unintentionally might have provided
inaccurate answers to the survey questions.
• Non-response error might have occurred because some
of the respondents contacted provided an incomplete or no
response to some questions mentioned in the questionnaire.
Respondents did not respond to those questions because
they were unwilling to disclose the related data or
information.
1.4. Methodology:
(a) Research Approach:

• Primary data collected by Survey Research
Method.
• Secondary Data collected from product
catalogues and business journals.
(b) Research Instrument:

• Questionnaire method.
• Personal Structured Interview Method.
(c) Sampling Plan:
1. Sampling Units:
• Major tyre Companies
• Dealers of HCV tyre.
• Customers of HCV tyre.
• Truck/bus drivers.
2. Sample Size:
• Tyre companies: 6 Nos.
• Dealers of HCV tyre: 45 Nos.
• Customers of HCV tyre: 45 Nos.
• Truck/bus drivers: 120 Nos.
3. Sampling procedure: Convenience sampling as well as

judgment sampling.
1.5. Findings:
1) The total market potential per month for HCV tyre in the
North-Eastern region has increased from an average of
12,000 tyres in 2000-01 to an average of 17,000 tyres in
2003-04.
2) Company-wise , Apollo Tyres Ltd. has the largest market

share of 30% closely followed by MRF Ltd. with 23%
market share respectively.
3) Apollo Tyres has the largest number of dealers in the

North-East.
4) Apollo Tyres has been able to increase its market share

from 12% in 2000-01 to 30% in 2003-04 in the HCV tyre
segment.
5) Reasons for achieving market growth by Apollo Tyres Ltd. :
a) Large exclusive dealer network.
b) Better tyre quality and performance.
c) Advertisements
d) Thrust on overloaded Segment
e) New generation of tyre dealers.
f) Dealer friendly policies.
g) Customer friendly policies.

1.6. Suggestions:
 Rebuilding of brand image.
 Importance of relationship building with dealers and

customers.
 Efforts to differentiate its products from competitors.
 Apollo Tyres should give more emphasis on advertisements.
 Apollo Tyres should concentrate on increasing its exports.
 Opening of more offices in the North-East.
 Serving customers through Internet and banking facilities.
 Sufficient number of efficient technical manpower should be

introduced.
 Entering into the two/three wheeler tyres segment.
 Apollo tyres should introduce a Central Call Cell with a single

access number for its customers.
 Apollo Tyres needs to emphasise on the export market of

tyres.
Chapter II: PROFILE OF THE COMPANY
2.1. The Apollo Vision:
‘A Leader in the Indian Tyre Industry

And A Significant Global Player,
Providing Customer Delight
And Enhance Shareholder Value.’
2.2. Core Values:
C - Care For Customers

R - Respect For Associates
E - Excellence Through Teamwork
A - Always Learning
T - Trust Mutually
E - Ethical Practices
2.3. Apollo’s Goals:
5YHK
 Achieve by 2005-06
 A Gross profit of Rs. 500 Crores
 And a Turnover of Rs 5000 Crores
2.4. Brief History Apollo Tyres Ltd.:
Inspired by the Greek Sun God ”Apollo”, Apollo Tyres Limited has
created a remarkable identity of its own style in the Indian tyre market.
So much so that the name itself has become synonymous with the
brand. A marginal player in the tyre industry a decade ago, Apollo
Tyres leads the replacement market in the heavy vehicle and car
radials segments. It has achieved this trough acquisitions and contract
manufacturing.
The history of Apollo Tyres limited can be traced back to the 1970s,
when uncompromising MNC’s and Indian tyre majors dominated the
tyre industry. Since its incorporation in 1972, Apollo had to suffer huge
losses in its infant years, owing to the fact that all tyre majors had high
production capacities as compared to the market demand. Within a
decade though backed by its strong production and marketing
strategies, Apollo had catapulted itself among the top tyre companies
of the country. Thanks to its state-of-the art technology, goal oriented
people and clear, adventurous vision of the top management, Apollo
has become a name to reckon with, not just in the nylon, but also in the
radial tyre segment.
Change is something Apollo as a corporation has always been

comfortable with and never feared. Years ago, with a view to position
itself in the premium tyre segment, Apollo decided to price its brands
reasonably higher than its competitors. It thus target a customer
segment for which price was almost a non issue. The key criterion was
product benefit. Premium branding led to to the development of a niche
that compromised those who looked for the best tyre and not
necessarily the best bargain. This made the company less vulnerable
to recessionary trends in the years to come. In the recent times,
however, while the industry has been the crying wolf, Apollo has
comfortably weathered the storm of recession. Little wonder then, that
customer loyalty to Apollo brands has become legendary.
With the kind of progress Apollo has made since its incipient years,
it is difficult to believe that it has been around for a little over two
decades. Now at a shimmering 29, Apollo has been plucky and spirited
enough to give its competitors sleepless nights. Believing firmly in the
philosophy of ‘always looking for new answers’, today’s tyre giant
Apollo has all along envisioned action that would challenge the
conventional wisdom of the tyre industry. Call it holistic thinking or
innovative marketing strategies, as a corporation; Apollo has always
thrived on huge challenges so as to turn them around to its
advantages.
2.5. Highlights:
 Fastest growing tyre company in India in the HCV

segment.
 Eighteenth largest tyre company in the world.
 First tyre company in India to obtain ISO 9001

certification for all of its operations.
 First tyre company to introduce packaging for tubes, 2

wheeler tyres and car tyres.
 First tyre company with more than 100 sales & service
offices in India
 The tyre company to have the concept of exclusive

showrooms for HCV tyres, called the ‘Apollo Tyre World’.
 The tyre major with the largest number of

management professionals in India.
2.6. General information:
 Incorporation: 1972
 Technical collaboration: With Continental AG of

Germany, the fourth largest tyre company in the world.
 Present Network of Manufacturing Locations:

1. Perambra, Cochin, Kerala
Manufacturing truck, LCV and Farm tyres.
2. Limda, Gujarat
Manufacturing truck, radial & OTR tyres.
3. Pune, Maharashtra
Manufacturing tubes.
4. Kalamassery, Cochin, Kerala
Premier Tyres Factory (Premier is a subsidiary
company)
5. The Company has conversion facilities at:
S.Kumar in Indore, Madhya Pradesh
and TCIL Kolkata, West Bengal.
2.7. A profile of its operations in the North- East:
Apollo Tyres Limited started its operations in the North-East in the

year 1976.The company’s regional office is situated in Guwahati and
has three C&F offices in Shillong, Agartala, Dimapur and Tinisukia
(proposed) respectively.
The company carries out its operations in the North East through
125 dealers. Guwahati itself comprises of 35 dealers. In an attempt to
increase the present market share the company employs various
promotional strategies such as Sales promotional schemes, customer
meet, dealers meet and advertisements.
2.8. Fact file:
• Average monthly sale in the North- East acc. to the

company in the year 2004
Table 2.1. Average monthly sale in North-East

Type of tyre Units
HCV 5100
LCV 1225
RADIAL (passenger) 1100
BIAS (passenger) 850
• Number of dealers :
Guwahati - 35
Entire North-East- 90
(The company has around 25 exclusive dealers for

its HCV tyres and 9 for non-truck tyres.)
• Average Turnover in 2003-04: Rs 1 Crore

• Market share in 2003-04:
.
Table 2.2: Market share of Apollo Tyres Ltd.
Type of tyre Market share

HCV 30%
LCV 20%
Passenger (bias) 15%
Passenger (radial) 18%
• Distribution Network:
Factories Regional Despatch

Center
Eastern India
Offices
• Manpower:
State In charge: 1
District Manager: 1
Technical Officer: 1
Marketing Executives: 4
C&F Inchargeg: 3 1
2.9. After sales service at Apollo Tyres Limited:
After sales service is an important parameter on the basis of which

a customer purchases a product. To remain ahead of competitors a
company needs to have an extensive network of dealers and service
personnel who ensure that their products function without any technical
problem for a longer period. Therefore mobile well trained service
personal to provide quick after sales service has become a necessity.
The after sales service provided by ATL can be broadly categorized
into the following:
• Advising customers on tyre care:
The after sales service department gives the customers

various tips on how to increase the life of his tyres. If he is facing
any problem with regard to the performance of his tyres, the
service personnel will look into the problem and try to eliminate it
and give him necessary advice. Incase of service abuse of tyres
by the customer, the service personnel will explain the cause of
service abuse to the customer.
• Advising the customer to select the type based on loading

pattern:
In case of heavy commercial vehicles, there are different

types of tyres for different loading patterns. The department also
helps the customer to select the type which best fits into the
pattern of loading that he prefers in his vehicle.
• Replacing tyres with manufacturing defects:
If any tyre does not give full service to the customer due to
manufacturing defects, then that tyre is replaced. The truck tyres
of ATL have a warranty period of two years against all
manufacturing defects. The car radial tyres have unconditional
warranty for perid of three years or 50% treadwear whichever is
earlier.
• Calculation of payment of claim on used tyres
If the tyre does not give full service during the warranty
period due to treadwear or suffers any kind of damage, then
discount of certain percentage of new tyre value compensates
the customer. For example, if a tyre undergoes 50% treadwear
within the warranty period, then the customer ill get a claim of
50% of new tyre value. That means, while buying new tyre, he
has to pay only 50% of the new tyre.
• Customer friendly policies on claims for used tyres
ATL has many customer friendly policies in case of claims

on its used tyres. Some of them are briefly described below:
1. In case of above 85% treadwear, the value of the casing
will be evaluated and the customer will get a claim of up
to 15% of new tyre value.
2. In case of concussion of tyres in the overloading segment
(10.20-18 Loadstar Super), the customer will get a claim
of upto 50% treadwear on pro-rata basis.
3. In case of lock-ring damage (that is caused due to
improper fitting of the lock- ring which damages the
bead), the customers get benefit up to 50% treadwear on
pro-rata basis.
• Processing of claims at Apollo Tyres Limited :
When a customer makes a claim, he has to go through a

few processes like serial number verification, customer
verification etc.
The customer then has to bring the tyre to the company’s

godown at Guwahati where the technical service engineer
examines the tyre. The results of the evaluation are given within
two or three days. If the claim is to be adjusted, the carrying cost
of the tyre to the godown is borne by the company. For
collecting the claim, the customer can either come to the
Guwahati office or receive it by mail.
2.10. Organisational chart of Apollo Tyres Limited:
MANAGING DIRECTOR
VICE - PRESIDENT (MARKETING)
GENERAL MANAGER
DEPUTY GENERAL MANAGER
ZONAL MANAGER
REGIONAL MANAGER
STATE IN-CHARGE
DISTRICT MANAGER
SHILLONG C&F TECHNICAL MARKETING

AGARTALA C&F OFFICER EXECUTIVE
TINSUKIA C&F
S.O/COMMERCIAL
STAFF
2.11. A brief description of pneumatic tyres:
2.11.1. What is a pneumatic tyre?
A pneumatic tyre is a torrodial-shaped flexible high performance

composite membrane containing air or fluid under pressure when
mounted on a suitable rim. It is made of an elastic material, natural or
synthetic or a blend thereof, reinforced with textile cord ply fabric
carcass (or steel for some ranges of radial ply tyre ) enclosing bead
rings. In a Diagonal ply (also called Bias ply) tyre, the carcass ply cords
extend to the beads diagonally to form a structure; in a Radial ply tyre,
the ply cords are laid substantially at 90 to the centre line of the tread,
the carcass being stabilized by an essentially inextensible
circumferential belt.
2.11.2. Functions of a pneumatic tyre:
For a better understanding of the pneumatic tyre it is important to

know the various requirements expected out of it. There are certain
basic performance requirements, which are found to be essentially the
same for all types of pneumatic tyre, even though their relative
importance differs with each type. There are other features, which are
distinctly depending on the kind of tyre and their service condition. It is
these features that makes an aircraft tyre different from an earthmover
tyre or a drive tyre from a steering tyre.
2.11.3. Basic tyre requirement:
1. Cushion the vehicle ride:
A pneumatic tyre is the first line of defense against road shocks

and its unique property of cushioning provides comfort. Cushioning
is imparted by the air and ability of the tyre membrane to deform
radially.
2. Carry the load: -
A pneumatic tyre must carry the load when mounted on rim and
inflated to the required pressure. In other words pneumatic tyre
must form an air container of adequate strength disposed in the
radial direction to hold the air pressure acting radially.
3. Transport the load:
While doing so a pneumatic tyre is required to transmit engine

torque and braking torque efficiently to the ground, to put the
vehicle in motion. Good tyre to road grip coupled with adequate
strength disposed in the circumferential direction underneath the
tread of the tyre is required for efficient transporting.
4. Develop adequate cornering force:
It is this unique ability of a pneumatic tyre, to develop adequate

cornering force to counter the centrifugal force or any other lateral
forces like wind force and retain the vehicle on the road while
negotiating curves etc. that enabled the development of the road
transport industry. Excellent grip combined with its ability to
undergo lateral deformation helps the pneumatic tyre to develop
cornering force.
5. Economic performance:
Every revolution of the tyre leads to periodic strain radially,

circumferentially and laterally and these necessitate adequate flex
fatigue life for the materials and the structure and wear resistance
for economic service life.
In addition to these general requisites, today’s tyre must meet

the various standards laid down by the vehicle manufacturers and
customers. Thus a rear tractor tyre should have the capability to
transmit high torque efficiently on loose soil and give adequate
floatation. An aircraft tyre needs to be as small and light as possible
and at the same time should have high load carrying and speed
capability, high impact resistance and excellent directional stability.
To cite a few of the specific requirements – directional ability, rolling
resistance, impact resistance, speed capability, run flat resistance,
puncture resistance, weather resistance, retreadability, mileage, low
costs, crack resistance, floatation, grip in loose soil, noise
resistance etc.
2.11.4: Definition & functions of various components of a tyre:
1. Bead:
The part of a tyre that is so shaped as to fit the rim and

hold the tyre onto it. It has cores made of several strands
inextensible steel wire with end of the piles wrapped around
the core for anchorage.
2. Sidewall:
The part of the tyre between the bead and tread which
flexes in service.
3. Sidewall rubber:
The rubber layer on the sidewall of the tyre and covers

the carcass, which include protective ribs and fitting to assist
in centering of the tyre on the rim. This protects the tyre from
scuffing and damages.
4. Tread:
This is the part of the tyre, which comes in contact with

the ground and through which the driving, braking and
cornering forces are transmitted. It is made of special rubber
compound to give good wearing properties and in
conjunction with tread pattern to transmit these forces.
5. Cord:
Textile or non-textile strands (threads) used in various

components of the tyre carcass, poles, belts, breakers, etc.
6. Ply:
A layer of rubber coated fabric cords.
7. Carcass:
The rubber-bonded cord structure of a tyre integral with
the bead, which provides the requisite strength to carry the
load.
8. Breaker (Diagonal):
Intermediate rubberized fabric layers/plies between the

carcass and the tread, which helps bonding as well as
protects the casing from shocks.
9. Belt (radial):
Layers of rubberized material under the tread with cords

laid substantially in the direction of the tread of the center-
line that restricts the carcass in the circumferential direction
and stiffen the tread area.
2.11.5. Types of tyres (Construction):
1. Bias tyre (Diagonal or Crossply)
A pneumatic tyre in which tyre ply cords extends from

bead to bead and are laid at alternate angles and is less than
90 degree to the center line of the tread.
2. Radial tyre
Pneumatic tyres in which the ply cords extend to the

beads are laid substantially at 90 degree to the center of the
tread. Carcass is stabilized by inextensible circumferential
belts.
2.12. Product profile:

Apollo tyres have three major product categories. They are tyres for
Heavy Commercial Vehicles, Light Commercial Vehicles and
Passenger Car Vehicles , also manufactures Jeep and tractor tyres.
The following table gives the list of the various products under each
category.
Table 2.3 : Product categories
Tyres for HCV Tyres for LCV Tyres for passenger

car
Amar DLX Amar Delux Amazer
Amar Amar LT Amazer XL
Amar-Express Dhruv TT Armour
Amar-AT Rib (0 Deg taper) Strom
Amar-Super Rib Dhruv TT
Amar-3 R (5 Deg taper) Jeep Tyres
Loadstar Super Gold Duramile Gripper

Loadstar Super Loadstar Super Maha Trooper
Loadstar Super Milestar Trooper
Hercules Milestar LT Hunter
XT-7 Gold XT-9 Panther
XT-7 Armour
XT-7 Haulug • Farm Tyres
XT-9 Gold Sarpanch
XT-9 Krishak Super
Champion-Gold Krishak Premium
Champion Power Haul
ST-5 Dhruv
KZ-99 R Kissan Adv Plus
KZ- 77 R Bhim
KZ-50 L
KZ-36 L
KZ- Commando
KZ- XDT
KZ-27 L
KZ- 32 S
Chapter III: RESEARCH METHODOLOGY
3.1. Objective:
1. To analyse the market growth of HCV segment of Apollo

Tyres Ltd. from 2000-01 to 2003-04 in the North-East
market.
2. To determine the present market share of the major players
in the North-East market.
3. To study the purchase parameters and after sales service
provided by Apollo Tyres Ltd.
3.2. Scope:
To aid in formulating a marketing strategy that would help in further

consolidation and expansion of customer base of Apollo Tyres Ltd. in
the North-East market.
3.3. Type of data:
Primary data was collected to satisfy the above stated objectives.

Secondary data was also referred to gain a better insight into the
problem at hand.
3.4. Methodological sequence:
The research project consists of the following methodological

sequence:
3.4.1. Choice of the research design:
The research design that has been adopted for the purpose of the
project is of descriptive nature since the focus is on the discovery of
ideas and their study. The project study is of quantitative in nature
based on the interview conducted among the Dealers, Drivers/Owners
and Fitment Surveys and discussions with other companies.
3.4.2. Determining the source of data:
Since only primary data to be collected, the source of data is based

on the information provided by the respondents.
3.4.3. Data collection methods and instruments:
During the period of data collection, Initially it was decided to do

separate surveys on the dealers, customers/drivers and another survey
by visiting the company offices. By visiting the company offices we also
wanted to find out the market share of every player. But while
conducting the company survey, we felt that the data could be biased.
So after discussions with the management, it was decided to conduct a
fitment survey in the truck stands in Guwahati, Nagaona and Hojai.
Different parts of Greater Guwahati, Nagaon, Hojai, Tinsukia, Itanagar,
Dimapur were covered for the purpose of other data collection. The
data collection was done not only through the filling of the structured
questionnaires but also with depth interviews, to analyze the reasons
for the ranking given and better understanding of the problems. The
data was collected till the end of the second week of June, and
thereafter the analysis was done and recommendations made taking
into consideration the views of the customers, the depth interviews of
the dealers that gave good insight on the customers’ attitudes and
reasons for the rankings given by the customers to the brands,
discussions with the management of Apollo Tyres as well as its
competitors and some secondary data mainly provided by Apollo
Tyres.
3.4.4. Preparation of questionnaire:
The primary data was collected strictly through well-structured

questionnaire. Two questionnaires were prepared where one in context
with the dealers and the other for the drivers/owners of the vehicle
including the fitment of tyres. The questionnaire was prepared on the
basis of the objectives and the problem studied. It was designed in
such a way that the respondent would have no inhibition in expressing
his/her view frankly. The form of the questionnaire can be as follows:
1. Most of the questions were of the multiple-choice

types in which the respondents simply
needed to put tick mark in the appropriate box. This was done
for the respondents’ convenience and also to get rid of their
attitude of skipping important questions. Also, questions were
designed keeping in mind that the dealers might be reluctant in
giving information like sale figures, profitability. So, sensitive
questions were placed at the later half of questionnaire.
3. Rating scale is used for the opinion of the Dealers having

Excellent, Good, Average and Poor as different scales.
4. One open ended question needing respondents to

describe their views freely in their own words was also
included
5. Dichotomous questions were also included.
3.4.5. Pilot survey:
The pilot survey was conducted on 5 respondents of each

questionnaire and certain changes were incorporated that were
essential before administering the final one. Based on the pilot survey
the following modifications were included:
1. An error was detected where it was not stated

whether one could give same ranking to another brand or not.
This error was corrected in the new questionnaire for Dealers.
2. Counter potential of the dealers was first given in the

range of 20 scales but after pilot surveying it was found that it
varies in large quantities and so, it was modified to contain
exact quantity.
3. Remarks of the Dealers were not included initially.

4. After interviewing the Dealers some categories in the
opinion of the dealers were skipped such as profitability, sales
promotion and channel strategy.
5. Remarks was added in the Questionnaire for the

Drivers/Owners as they were commenting something extra
which was not included in the questionnaire.
3.4.6. Selection of sample:
1. Sampling Units:
a. Dealers of HCV tyres.
b. Drivers/Owners.
c. Major tyre companies.
2. Sample Size :
a. Tyre companies - 6
b. Dealers of HCV tyres - 41
c. Truck/Bus Drivers - 112
3. Sampling Procedure:
Sampling was done through convenience sampling

as well as judgment sampling.
3.4.7 Data Analysis Technique:
Data was analysed with the help of softwares like MS Excel and MS
Word. The questions were coded in MS Excel’s Spread Sheet and
thereafter they were analysed and put in a Graphical Format for a
better understanding. The qualitative data collected through interviews
were analysed through discussions.
3.4.8. Limitations of the project:
• 100% response rate was not found from the customer.

• Approximately 97% of the questionnaire was found
complete and 3% was incomplete, which were later
phased out
• Sampling error might have occurred because no sample

is a perfect representation of a given population unless
the sample size equals the population
• Response error might have occurred. Respondents

intentionally or unintentionally might have provided
inaccurate answers to the survey questions.
Chapter IV:
OTHER MAJOR CORPORATE PLAYERS
4.1. MRF Limited:
A leading company in the tyre industry, MRF Ltd. boasts of an

enviable track record. Established in the year 1946 at Chennai 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.
MRF tyres are exported to many countries worldwide and it is the

first Indian company to manufacture Formula Car (Racing) Tyres. The
grueling racetracks have been the laboratories for testing its tyres.
4.1.1. Operation in North–East India:
• Regional Set-up: The company has a district office at Guwahati

and C&F offices at Shillong , Agartala , Dimapur and
Bandardowa.
Distribution Network:
FACTORY GODOWN DEALER NETWORK
(The company operates through C & F agents in the North-East)
• Organizational Set-up:
DISTRICT MANAGER
SUB DISTRICT MANAGER
SERVICE ENGINEER
SALES REPRESENTATIVE
Operational Staff: 8 Employees
• According to the company the total market potential of North-

East for various tyre segment in 2004
Table 4.1: Tyre potential of North East acc. to MRF
Type of Tyre Qty. (In Nos.)

HCV 17000(App.)
LCV 6200(App.)
Passenger Radial 6000(App.)
Passenger Bias 8700(App.)

• Average Monthly Sales in 2003-04
Table 4.2: Average monthly sales
Type of tyre Qty. (In Nos.)

HCV 4000 (App.)
LCV 1735(App.)
• Average monthly market share of HCV tyre : 23%
• The company considers Bridgestone, JK tyres and Apollo Tyres

Ltd. as it nearest competitor.
• Average yearly sales in the last three years:
Table 4.3. Yearly sales in last three years
Type of Tyre 2001 2002 2003

Truck Tyre 33000 37950 43640
Radial tyre 6000 7200 9600
4.1.2. SWOT analysis of MRF Ltd:
 Strength: Quality, wide range of tyres, brand

preference, customer awareness, wide
dealer network and operational
efficiency.
 Weakness: High price, little incentives to dealers

and less promotional activities.
 Opportunities: Revival of the auto industry will lead to

better opportunities in the radial tyres
and truck segment.
 Threats: Tough competitions from the

competitors like Apollo and JK tyres.
4.2. J.K. Industries Limited:
JK Tyre is a leading radial manufacturer and the first in the world to

be awarded the QS 9000 for multi-location operation. It is also the first
tyre manufacturer in the world to get the ISO 9001 certification for its
entire operation in one go. JK tyre produces and sells tyres and tubes
under the brand name "JK Tyre" for Truck, Buses, Passenger Cars,
Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors.
The company pioneered Steel Radial Technology in India in 1977 and
continues to be the industry leader in the Radial segment in India. JK
Tyre is the only Tyre Manufacturer in the country to produce high
performance 'T' & 'H' -rated steel radial.
JK Tyre has consciously followed a policy of continuously

modernizing and expanding its tyre manufacturing facilities to retain its
edge in the market place. JK Tyre has a worldwide customer base in
over 45 countries across all 6 continents.
To keep pace with the market demand as well as technological

leadership in Indian market, J.K. Industries acquired Vikrant Tyres
Limited, Mysore in 1997. J.K. Industries and Vikrant Tyres Limited are
the only tyre companies in India to have received all three ISO 9001,
QS 9000 and ISO 14001 certificates. The company has a technical
collaboration with M/s Continental AG, Germany, which is among the
top five tyre manufacturers in the world to keep pace with latest
technological developments.
To stay at the forefront of technological advancements a state of art

Research & Development Centre, HASETRI, was set up, which
remains the nerve center for providing cutting edge technology. In a
short span of time it has emerged as the 17th largest tyre manufacturer
in the world an achievement in itself.
JK Tyre is the only manufacturer of truck/ bus steel radial tyres, and
the second largest manufacturer of 4-wheeler tyres in the country.
Also, JK Tyre is the largest exported tyre brand from India. It was
awarded the CAPEXIL's Highest Export Award for 1997-97 by FIEO. It
enjoys preferred premium brand status in Truck Bias market in USA
and across many markets in Africa, Middle East and South East Asia.
4.2.1. Operation in North–East India:
• The company started its operation in North – East India in the

year 1977.
• Regional Set -Up:
 It has an area office at Guwahati.
 It has depots in Shillong, Dimapur and Agartala which

are operated by C & F agents.
• Organizational Set-Up:
Area Manager
Sales Officer Service Engineer
Sales People Commercial Staff
• According to the company the total market potential of

North-East for various tyre segment in 2004 are as follows:
Table 4.4: Tyre Potential of North East Acc. To JK Tyres

Type of Tyre In Nos.
HCV 17500(App.)
LCV 6700(App.)

• Average monthly sales ( in units ) in 2003-04
Table 4.5: Average Monthly Sales
Type of tyre In Nos.

HCV 3400 (App.)
LCV 1474(App.)
• Avg. Monthly Market Share of HCV Tyre: 20%
• The company considers Bridgestone, Goodyear and Apollo

Tyres Ltd. as it nearest competitor.
• Average yearly sales in the last three years :
Table 4.6: Average Yearly Sales of JK Tyres
Type of tyre 2001 2002 2003

Truck Tyre 28045 32252 37090
Radial tyre 6000 7200 9600
4.2.2. SWOT Analysis of JK tyres:
 Strength : Better customer services, brand

awareness and operational efficiency
.
 Weakness: Less dealer network and low on
retreadibility.
 Opportunities: High demand for LCV tyres and in

radials.
 Threats: Competition from low priced brands like

Birla, Poddar.
4.3. CEAT Limited:
CEAT Ltd., one of the oldest among RPG companies, is one of

India’s leading tyre manufacturers, with an annual turnover of Rs.1500
Crores (US $ 310 Million). It manufactures and markets “CEAT”
branded automotive tyres, tubes and flaps. It has a strong presence in
the domestic and export market. CEAT’s strong commitment towards
providing excellent service and support to its buyers and customers
has also helped it to maintain the leadership position in most of the
markets. CEAT stands committed to continuously improve the quality in
all its products and services to satisfy current and emerging customer
needs.
CEAT International was first established in 1924 at Turino in Italy. It

started off making cables for telephones and railways. CEAT stands for
Cavi Electrici Affini Torino (Electrical Cables and Allied Products of
Turin). In 1958, CEAT Tyres of India Ltd is incorporated in collaboration
with TATA Group of Companies, and is listed on Bombay Stock
Exchange. In 1982, RPG Group takes over CEAT Tyres of India, which
becomes CEAT Ltd in 1990
CEAT has the widest range of tyres for all user segments in India.
Product segmentation, depending on usage needs like overloads, road
conditions and vehicle abuse, can create market fits for these specific
needs. CEAT has created products for each of these segments and
thereby has a cutting edge in this specific market.
CEAT has been exporting tyres since 1964, which has helped it in
getting a firm foothold in export markets. CEAT has now 14% export
market share among Indian companies. Tyres are exported to more
than 30 countries worldwide. Its main business links are in the markets
of Singapore, with 64% market share, UAE, with 42% market share,
Philippines, with 22% market share, USA, Bangladesh, Pakistan,
Vietnam, Iran, Nigeria, Egypt and other African, Middle-East and Far-
East Asian countries. CEAT also produces tyres, which meet the
requirements of international standards: DOT standard (Department of
Transportation), to be able to export tyres towards the USA and IN-
METRO standard to be able to export towards the Latin-American
countries. CEAT’s continuous effort and outstanding export
performance have been recognized by AIRAI & CAPEXIL with several
awards for 10 consecutive years
CEAT has a technical tie-up with Yakohama of Japan for the

manufacturing of radial tyres. Presently 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 past few years should provide a boost to the replacement market
in the coming years and Ceat could be a major beneficiary thereof.
4.3.1. Operation in North–East:
• The company started its operation at Guwahati in 1962.
• Regional Set-up:
 Regional office – Guwahati.
 C & F agents – Shillong, Tinsukia. Agartala.
• Organizational Set -Up:
Regional Manager
Sales Officer Technical Engineer Commercial Officer
Territory Manager Clerical Staff

East for various tyre segment are as follows :-
Table 4.7: Tyre Potential of North East Acc. To CEAT in 2004

HCV 17500(App.)
LCV 6500(App.)
• Average monthly sales ( in units ) in 2003-04

HCV 1925 (App.)
LCV 910(App.)
• The company considers MRF Ltd and JK Tyres Ltd. as its

nearest competitor.
Table 4.9: Average Yearly Sales of CEAT
Type of tyre 2001 2002 2003

Truck Tyre 15880 18260 21000
Radial tyre 4500 5200 6000
4.3.2. SWOT Analysis of Ceat Ltd :
 Strength : Wide range of products, liberal claim

policy and good brand image.
 Weakness: Low on the replacement market and tyre

quality also week in the Truck segment.
 Opportunities: Production growth in the automobile

sector may lead to a growth in the
replacement market. Enormous
opportunities in the upcoming
scooter/motorcycle tyre market.
 Threats: The entry of multinational into tyre market

may have an adverse effect on its thin
profit margins.
4.4. Goodyear India Limited:
Goodyear is an American company with its headquarter at Akron

(U.S.A). its Indian subsidiary, Goodyear India Ltd. has its head office at
New Delhi. The company operates two factories at Aurangabad and
Faridabad. It has a large country-wide sales & distribution network of
2500 retailers.
The thriving Indian car market with seven-digit annual growth

volumes has flared up adrenaline levels within the global management
of the world’s largest tyre maker, the $14-bn Goodyear Tire &
Rubber.Goodyear completely re-engineered its premium ultra-high
performance passenger radial tyre, the Eagle F1 GS-D3, for launch on
Indian roads in the month of August,2004.
Developed at Goodyear’s technical centre in gothic Luxembourg,

the re-engineered Eagle F1 GS-D3 just made the grade at Goodyear’s
Mireval proving grounds by the shores of the Mediterranean. Pitted
against rivals, the Bridgestone ‘Potenza’ and the Michelin ‘Precede’,
Goodyear’s Eagle F1-GS-D3 sped away with top honours in a series of
rigorous tests before worldwide auto-enthusiasts in the Mireval
powerglide. Time will tell whether the Eagle F1 GS-D3 is bound for
glory on Indian roads. The premium tyres will soon be shipped out of
Goodyear’s factories in Thailand and Malaysia to India. In fact,
Goodyear has already lined up the Eagle F1 GS-D3 pricing strategy for
India. For starters, they will be priced in the Rs 3,500-Rs 5,000 band
per tyre in a clear bid to take on the likes of rivals Michelin and
Bridgestone in India.
Incidentally, the launch of the customised Eagle F1 GS-D3 in India

will mark the first simultaneous launch of a Goodyear flagship product
across all Asia markets. Something which Goodyear Asia president,
Hugh Pace calls the “internationalisation of the Indian tyre market
within Goodyear’s global eco-system”.
Goodyear’s new version Eagle F1 has been re-engineered for key

Asian markets like India where auto enthusiasts demand high
performance in a value package. Given the success of the Eagle F1
GS-D3 in the US and Europe, it is hopeful of replicating the same
experience in India, where the tyres will cater to the swiftly expanding
D/E segments. The Goodyear management is aware that India is
among the fastest growing automotive markets in the world.
Goodyear can significantly benefit from this and consolidate its

$200-m presence in India, which is a key emerging market for high-end
passenger radials. Be that as it may, the total market size of India’s D
& E segments remains well below a modest 30,000 and Goodyear’s
Eagle F1 GS-D3 will doubtless be positioned as a niche product, aimed
at rich and super-rich car owners.
4.4.1. Operations in The North-East:

• Regional Set-up: The Company has a district office in
Guwahati.
FACTORY GODOWN DEALERS
(Aurangabad, Faridabad) (Through C & F agents)
• Organizational Set- Up:
District Manager
Professional Business Counselors (Service Engineers)
District Operating Manager
Branch Supervisors
Godown Clerk

East for various tyre segment are as follows :-
Table 4.10: Tyre Potential of North East Acc. To Goodyear

HCV 17000(App.)
LCV 6500(App.)

• Average monthly sales ( in units )
Table 4.11: Average Monthly Sales

HCV 510 (App.)
LCV 390(App.)
• The company considers MRF Ltd, J.K tyres and Apollo Tyres

Table 4.12: Average yearly sales of Goodyear
Type of tyre 2001 2002 2003

Truck Tyre 4206 4840 5560
Radial tyre 1000 2500 3600
4.4.2. SWOT Analysis of Goodyear India Ltd :
 Strength : Quality, brand awareness, customer

perception.
 Weakness: Dealer Network and Less manpower and

offices in North-East. Reducing market
share overall in the North east.
 Opportunities: Growth in LCV & HCV segment may

lead to more market share. Also good
scope in the Radial segment.
 Threats: Market consolidation and expansion by the

market leaders of the various segments
in a highly competitive market.
4.5. Birla Tyres:
Birla Tyres is one of the youngest tyre companies in India. It is also

one of the first to win the coveted ISO 9001 certification for excellence
in quality management specific to design development and production
of tyres, tubes and flaps. It has a tie-up with, Pirelli Ltd. of Italy, the
legendary world leader in tyre manufacturing.
Every year one million tyres and tubes roll out of the integrated
facilities from its factory to Balasore (Orrisa). Each tyre, carrying the
seal of Birla quality Assurance, is designed to bring the highest levels
of efficiency, performance, value and satisfaction to buyers and users
throughout India and more than 25 countries. The company started its
operation at Guwahati in 1963.
4.5.1. Operations in the North-East:
• Regional Set-up: The Company has a C&F office in Guwahati,

which oversees all its operation in the North- Eastern region.
FACTORY C&F OFFICE CUM GODOWN DEALERS
(Balasore, Orrisa)
• Organizational Set-Up:
Regional Manager
District manager Service Engineer
Marketing Executive Assistant Service Engineer
(C & F employees 7 – 10)

• According to the company the
total market potential of North-East for various tyre segment in
2004 are as follows :
Table 4.13: Tyre potential of North East Acc.to Birla Tyres

HCV 17500(App.)
LCV 6500(App.)
Average monthly sales ( in units )

HCV 2275 (App.)
LCV 325(App.)
• The company considers MRF Ltd, J.K tyres and Apollo Tyres
Table 4.15: Average yearly sales of Goodyear
Type of tyre 2001 2002 2003

Truck Tyre 18760 21580 24800
Radial tyre 480 960 1800
4.5.2. SWOT analysis of Birla Tyres :
 Strength : Low pricing, latest technology from Pirelli. Good

brand name of the Parent Company.
 Weakness: Poor dealer network and offices in North-East

and less promotional activities. Non-core
business of the Birla Group.
 Opportunities: Encouraging response from the market within a

short period of time.
 Threats: Far behind market leaders in terms of market

share.
Chapter V: FINDING AND ANALYSIS
5.1. From the fitment survey:
The Fitment survey revealed not only the complete market share of the
brands in the HCV segment, but also the front and rear alignments. This
shows that Apollo Tyres rules this segment, closely followed by MRF,
especially in the rear tyre share.
5.1.1 Market share of HCV tyre
2%
8%
2%
12% Apollo Tyres-37%

37%
MRF-24%
JK-15%
Birla-12%
15% Goodyear-2%
Ceat-8%
Others-2%
24%
Market Share Overall (260 vehicles: 1560 Tyres)
• Market share of front alignment (260 Vehicles: 520 Tyres)
1%
8%
1%
30%
Apollo Tyres-30%
15%
MRF-31%
JK-14%
Birla-15%
Goodyear-1%
14% Ceat-8%
Others-1%
31%
• Market share rear alignment (260 Vehicles: 1040 Tyres)
7% 2%
1%
11%
Apollo Tyres-47%
MRF-19%
47% JK-13%
13% Birla-11%
Goodyear-1%
Ceat-7%
Others-2%
19%
5.1.2 Market share of LCV Segment
5%
10% 22%
Apollo Tyres-22%
4%
MRF-27%
8% JK-24%
Birla-8%
Goodyea-4%r
Ceat-10%
27%
24% Others-5%
Market Share Overall (156 vehicles: 936 Tyres)
5.2. From the customer survey:

• Analysis methodology:
Now in order to analyze the rankings, points were allotted to every

rank, with rank 1 getting 6 points, rank 2 getting 5 points, rank 3
getting 4 points and so on till rank 6 getting 1 point.
5.2.1 For best mileage:
HCV Customers
500
438
450 404
400
350 300 313
300 257
Points
250
200
150 92
100
50
0
Apollo MRF JK Birla Ceat Others
Tyres
Brands
• Analysis:
We see here that MRF is rated as the best tyre for mileage in this
segment, Apollo in second and not far behind. MRF’s premium tyres
for mileage are Super Lug and Super Miller (1000x20) and M77 and
Supper Miller (900x20). Whereas in Apollo’s Premium Tyres are XT-7,
XT-9 and Amar Deluxe. It is noticed that one brand, ST-5 is competing
against M-77 of MRF. Though they are of the same pattern (Semi
Lug), M77 is considered superior to ST-5 in terms of mileage.
LCV Customers
250 225
199 191
200 166
159
Points
150
100 68
50
0
Apollo Tyres MRF JK Birla Ceat Others
Brands
• Analysis:
MRF’s Supper Miller and M77 (Rib Pattern) are the premium
tyres in this category. These tyres are known for giving the best
mileage, whereas Apollo’s Amar Delux and Milestar are also giving
good mileage, but the customers rate them at second place after
MRF. Similarly JK’s Jet Rib and Ceat’s FM Sleek are good for mileage
and are rated just below Apollo.
5.2.3 Rankings for best retreadibility:
HCV Customers
7%
20%
14%
15%
23%
21%
Apollo Tyres-371 MRF-413 JK-387 Birla-272 Ceat-261 Others-121

• Analysis:
The Customers rate MRF best in terms of Retreadibility. Its M77
(Semi Lug) and Super Miller (Rib) can be retreaded almost 4 times.
One important point here is that MRF has a high probability of cut
expansion, so the question arises as to how a tyre with high
probability of cut expansion give high retreadibility. The answer to this
is that, if the tyre has not suffered a cut, and is brought in time for
retreading then it gives an excellent retreadibility. Similarly JK and
Apollo are good in retreadibility. They can be retreaded 2 to 3 times.
Apollo’s good retreadable tyres are the lug and semi lug tyres like XT7
(lug), ST5 (semi lug) and Haulug (lug). It is observed that the Rib tyres
of Apollo like, Amar and Amar Delux, are not very good in terms of
retreadibility. They are good as mileage tyres but they tend to develop
Shoulder Cracks, in a number of cases, after one resoling.
LCV Customers
7%
17%
12%
14% 21%
13%
16%
Apollo Tyres-187 MRF221 JK-180

Birla-148 Ceat-155 Goodyear135
Others-83
• Analysis:
As in the HCV category, the LCV category rate MRF as the best in
retreadibility and say that it can be retreaded 3 to 4 times. Here too
the tyres are M77 and Super Miller. Apollo and JK follow and are said
to be good for retreading. Apollo’s good retreading tyres in this
category are Milestar and XT9. The similar problem regarding rib
pattern tyres like Amar and Amar Delux is noticed in this category too.
Another interesting point noticed in the LCV segment is that there is
no choice for Apollo customers in the Semi Lug pattern. Earlier there
was a brand called ‘Anchor’ in this category, which was later
withdrawn by the company. The customers say that it was a good tyre
and now that it’s not available in the market, they have moved to other
brands of MRF or JK etc. Infact most of the customers say that M77 of
MRF has taken almost all the share of Anchor. The above statements
could be few of the reasons why MRF and not Apollo Tyres has the
largest market share in the LCV segment.
5.2.4 Rankings for Least Probability of CUT EXPANSION:
HCV Customers
8%
22%
17%
13%
18%
22%
Apollo Tyres-405 MRF-240 JK-394

Birla-319 Ceat-312 Others-141
• Analysis:
The HCV customers ranked Apollo and JK as having the least

probability of cut expansion. This is one of the reasons why Apollo
Tyres has the largest market share in this segment. Few of the drivers
said that Apollo Tyres has a high degree of cut expansion. On further
investigation we came to know this happens at times, because these
drivers overload their trucks, much ahead of the lead permissible.
Therefore tyres in these vehicles suffer from cuts and due to overload
they expand. Tyres like Super Rib and Haulug are meant for normal
loading but still truck drivers use these for overloading. But the general
consensus and the overall rankings indicate that Apollo’s tyres show a
very low probability of cut expansion.
On the other hand MRF here shows its major weakness. It has a
very high probability of cut expansion. The reason for this is that they
are mainly mileage tyres and good for highways and normal loading.
Because of this character they suffer from high probability of cut
expansion.
Another point noticed is that many drivers are not aware that every
tyre has its own application, uses or benefits. Therefore sometimes
tyres like Haulug and Super Rib, which are meant for normal loading,
are used for overloading. If the right tyre is used for the right
application, it will benefit the customer and eventually the company.
Many drivers are also not aware of how to avoid cut expansion.
They use primitive methods like cutters to repair them. But this
actually spoils the tyre after some time.
LCV Customers
8%
22%
17%
13%
18%
22%

• Analysis:
Here too we see that Apollo and JK are ranked as the top two and
MRF at the bottom. This is the only place where MRF scores low in
this category. The same reasons as, identified above in the HCV
segment, apply here too. But this segment suffers relatively low cut
and cut expansion problems. The tyres here carry relatively low
weight.
5.2.5 Rankings for Least probability of air formation:
HCV Customers
5%
21%
17%
17%
23%
17%
• Analysis:
The customers rate as the best in terms of least Air Formation

MRF’s Super Miller and M77. Followed by XT7, Loadstar, and XT9
etc of Apollo Tyres. They are considered good in this parameter. This
is one of the reasons why MRF and Apollo have the maximum market
share in this segment. JK, Birla and Ceat show similar performance in
this category and are rated much lower.
LCV Customers
6%
21%
15%
14%
23%
21%
Birla138 Ceat-147 Others-54
• Analysis:
Here again air formation is the least in MRF. Its premium tyres are
M77 and Super Miller in LCV segment too. Apollo tyres is rated good
by the customers. Amar Dlx and Milestar show very low probability of
Air Formation. But about 12 customers said that Apollo’s Amar has a
problem of air formation. The rest of the tyres are good. JK (Jet Rib)
follows closely. It is also considered good in terms of low air formation.
Ceat and Birla just show an average performance.
5.2.6 Rankings for best tyre for heavy loading:
HCV Customers
450
400
350
300
250
200
150
100
50
0
Apollo
MRF JK Birla Ceat Others
Tyres
423 387 394 326 279 88
• Analysis:
The analysis shows that Apollo tyres is considered the best tyre
for heavy loading. Loadstar, Hercules and XT7 of Apollo are the
premium tyres in the HCV segment. Loadstar is the most wanted tyre
when one is looking for overloading. Apollo Tyres hold the largest
market share in the HCV segment, and the credit goes to tyres like
Loadstar, XT7 etc. Apollo is followed by JK and MRF. JK offers Jet
Track 39 and MRF offers Super Lug 78 and Super Lug 90. Both the
companies offer good tyres for heavy loading. This is followed by
Birla, which is relatively low in the rating with only 326 points, showing
just an average performance. Ceat offers HCL 80, but shows a poor
rating for heavy loading.
LCV Customers
250
200
150
100
50
0
Apollo
Tyres
220 204 201 144 169 47
• Analysis:
As in the HCV segment, Apollo Tyres score maximum in terms of
heavy loading, with Loadstar and XT7, in this segment too. It is
followed by MRF and JK, which get almost equal points. JK and MRF
offer Jet Track and Super Lug in this segment. This analysis also
substantiates Apollo’s supremacy in terms of Heavy Loading. This
perhaps is one of the reasons why Apollo and MRF have a high
overall Market Share in this segment.
5.2.7 Rankings for best Claim Settlement and After Sale
Policy:
View of the HCV and LCV customers
800
700
600
500
400
300
200
100
0
Apollo
Tyres
547 663 665 653 561 261
• Analysis:
An overall view of all the HCV and LCV customers has been
taken. This is done after discussions with the management of Apollo
tyres and a few dealers. It was stated that the companies do not
differentiate between segments in its policy for claim settlement.
Therefore and overall ranking was considered.
Here we see that JK, Birla, and MRF give a good response
towards claim settlement, whereas Apollo is ranked relatively low. A
very important observation was that if we take the views of customers
of Guwahati city only, then the ranking of Apollo tyres is very high
along with MRF and JK tyres, but when it comes to smaller towns like
Nagaon, Hojai, Dimapur etc, then the rankings are relatively low. This
shows that the claim settlement policy is well implemented in the
major towns like Guwahati, Tinsukia, but poorly implemented in the
smaller towns. Many customers in towns like Nagaon and Hojai said
that the company sometimes takes as much as three months to give a
verdict on a tyre that has been sent for claim.
5.2.8 Rankings for best Sales Promotion Devices
HCV and LCV Customers
600
500
400
300
200
100
0
Apollo
Tyres
547 425 431 444 461 261
• Analysis:
Here both the HCV and the LCV segment’s analysis has
been done together, as we saw during the course of the study
that there is almost no difference in the sales promotion
activities performed by the companies for these two segments.
Apollo definitely offers the maximum schemes, gifts, coupons
etc, from time to time, for the drivers/ owners. The other brands
have similar ratings and are placed low in the tally. These
companies offer very limited schemes, and that too between
long gaps. Apollo’s Unconditional Warranty Campaign is a hit
among the truck drivers.
5.3 From the Dealers Survey:
5.3.1 Dealer’s monthly sale of Apollo tyres
8
8
7 7
6
Number of Dealers
6
5 5 5
4 4
3
3 3
2
2 2
1
0
0-50 50-100 101-150 151-200 201-250 251-300 301-350 351-400 401-450 450-500
Counter Potential (No. of Tyres sold per month)
Analysis:Here we have analyzed 45 dealers from Guwahati,

Shillong, Nagaon, Tinsukia, Dimapur, Silchar and Itanagar. The
maximum number of dealers lies in the range of 151 to 300.
Discussions with the management revealed that Apollo takes a
great care while appointing dealers and has a healthy dealership
policy. They don’t want to have very small inefficient dealers nor
do they want to rely on just one or two big dealers, which become
a risky affair. This can be substantiated by the fact that there are
only a few dealers at the extreme ends. And the major
concentration is in the range of 151 to 300 sales per month. There
seems to be a good balance between the kinds of dealerships that
Apollo has. This is one of the reasons why Apollo has emerged as
the Market leader and has shown a tremendous growth.
5.3.2 Findings from the 4 point Liekart Scale
Methodology: The dealers had to rate every company on different

parameters as Excellent (1), Good (2) Average (3), Poor (4). A sum
total of all these points, for every company, from the 45 dealers was
found out and an average was taken to find out the overall rating for
that parameter.
• Rating for quality of HCV tyre
Ratings ATL MRF JK BIRLA CEAT G’YEAR

Excellent 1.2
Good 1.94
Average 2.61 2.90
Poor 3.75 4.12
• Rating for quality of LCV tyre

Excellent 1.32
Good 2.13 1.64
Average 2.73 2.67
Poor 3.71
Analysis : These were the results of ratings for quality.. It was made
clear to the dealer that with Quality we meant an overall view in terms
of Mileage, Retreadibility, Cut expansion etc. The dealers rate Apollo
tyres number one in HCV segment. The best tyres in that category
were XT7 and Loadstar. MRF’s Supper Miller, Super Lug and M77
were considered good. But when it comes to LCV segment, then
Apollo’s ratings seem to go down. Though it has been rated good,
there were a few complaints against Apollo tyres in this segment. Many
dealers said that in the semi lug pattern there was no choice for
customer. Earlier they had Anchor, which was considered very good,
but was later withdrawn form the market. Now M77 of MRF has taken
its share. There is a severe need for a good tyre in this pattern. Also a
few customers told us that Amar and Amar DLX develop shoulder
cracking just after one resoling. Dealers have suggested improving the
quality in this segment.
• Rating for communication

Excellent 1.34
Good 1.94
Average 2.87 3.31 2.56 2.63
Poor
Analysis: Communication includes timely information about policies,

documents, schemes, dealer and customer meets. Here we see that
Apollo is just given an average rating by the dealers. Here MRF scores
above all. From the depth interviews, it was noticed that dealers were
really satisfied with the professionalism displayed by MRF. In case of
Apollo Tyres, the dealers were quite satisfied in Guwahati city where
the rating is Good(1.56). but when it comes to the smaller cities like
Nagaon,Silchar , Dimapur etc where there are less number of dealers,
then there seems to be a problem. Many dealers said that they are only
told about a scheme after quite some time has lapsed. Many said that
Apollo used to hold dealer/ customer meets earlier, but in the last two
years, this has drastically reduced.
• Rating for claim response

Excellent
Good 1.77 2.04 1.74
Average 2.53 2.68 2.72
Poor
Analysis: As stated earlier, Apollo tyres is not considered very good at

claim response by the customers. The dealers have also given it an
average rating.
Here too it seems that the company’s response is very good in
Guwahati and nearby areas, but the smaller areas seem to be
neglected. A few dealers said that sometimes the company takes up to
3 months to pass or reject a tyre. In such situations the dealer is the
one who gets into trouble with the customers.
• Rating for incentive schemes
ATL MRF JK BIRLA CEAT G’YEAR

Excellent 1.2
Good 2.33 1.97
Average 2.73 2.66 2.60
Poor
Analysis: Apollo definitely scores above all in this parameter. Its

Annual sales programme is considered to be the best by the dealers.
Its Gainz Unstoppable program has a lot of offerings in terms of travel,
vehicles and other commodities. Its Apollo Jewels Philosophy has been
a success throughout 2003-2004. The dealers appreciate the incentive
programmes and this is definitely a reason for success of Apollo tyres
in the Tyre Industry. There were just a few dealers, who had lower
counter potential, said that these schemes cause unnecessary price
wars between the dealers. They say big dealers lower the price even
below the margins, in order to win rewards through these incentive
schemes.
Years Monthly Sale (Nos.) Growth

2000- 12500 ---------
2001
2001- 13500 8.0%
2002
2002- 15000 11.1%
2003
2003- 17000 13.3%
2004
5.3.3 Growth of HCV tyre Industry in North-East Market:
Growth of HCV tyre in North-East
2003-04 17000
2002-03 15000
Year
2001-02 13500
2000-01 12500
0 5000 10000 15000 20000

Sale of tyres (monthly)
• Growth of Apollo In HCV segment:
Years Monthly Sale (Nos.) Growth

2000- 2660 ---------
2001
2001- 3550 12.2%
2002
2002- 4600 19.3%
2003
2003- 5100 29.1%
2004 • Mark
et share of Apollo
• Growth of Apollo Tyres visavis North-East market
Market Share
2000-2001 22%
2001-2002 26%
2002-2003 29%
2003-2004 30%
29.3%
30.0%
25.0%
20.0% 19.2%
15.0% 13.30%
12.0%
North-East
10.0% 11.1% market
8.0%
Apollo
5.0% Tyres
0.0%
0.0%
2000-01 2001-02 2002-03 2003-04
Chapter VI: SWOT ANALYSIS

6.1 Strengths:
 Leadership in the Heavy Loading Segment with the best quality

tyres like Loadstar, XT7, XT9, Hercules etc. and it also leads
the replacement market in car radials.
 Apollo tyres has a wide spread all India distribution
network and a well entrenched distribution system of over
5000 dealerships of which over 3000 are exclusive outlets
under the brand name “Apollo Tyre World” and another 100
called “Apollo Radial World”.
 The acquisition of Premier Tyres has enabled Apollo
Tyres to increase its market share. Alliances with Michelin will
lead to world-class products and technology, which will prevail
in the Indian market in the coming years.
 Apollo Tyres has a wide range of tyres to cater to the
needs of every segment in the market. Kaizen Tyres,
introduced by ATL, is established as a value for money brand
at the lower segment of the market.
 Apollo Tyres is extremely sensitive to the
trends/customer behaviour; this ability enables it to deliver
superior strategic plans.
 Apollo tyres have established a tradition of technological
excellence, innovation and adaptability to change that has
enabled it, over the years to increase its market share. All its
regional offices and C&Fs are well connected to with each
other including the Head Offices.
 Leadership attitude, energy and aggression in the
market place with motivation are the cultural hallmarks that
bring individuality, productivity and success as a team.
 Apollo Tyres has the best Customer Friendly policies. It comes

out with sales promotion activities on a regular basis. Recently
it introduced ‘Dikha Ke Le Lo Offer’ and has an ongoing
scheme of Unlimited Warranty. It also from time to time
conducts consumer and dealer meets.It has the best dealer
incentive schemes like ‘Apollo Jewels’. This scheme has been
very successful and a lot of dealers have won foreign trips.
6.2. Weaknesses:
 The pricing of Apollo tyres is generally considered to be
high in the price sensitive Indian market.
 Apollo Tyres puts less emphasis on mass media promotion.
 Except the truck and bus tyre segment, there is very
low customer awareness about the features of Apollo Tyres,
especially in the passenger car segment.
 Low presence in car OE segment and no presence in
two/three wheeler segment
6.3. Opportunities:
 Large replacement markets and also unexplored market
in the 2/3 wheelers tyre segment.
 Radialisation in commercial vehicle segment and wide
opportunity for Original Equipment (OEM) segment of the
market.
 Continued absence of a leading player (Modi
Continental).
 Establish leadership position in farm tyre segment and
use dominant position in commercial segment to leverage new
business opportunities.
 National Highway development Programme of the
Government of India driving significant change in the road
transportation industry.
6.4. Threats:
6.4.1 External
 Increased retreading by bus operators.

 Cheap imports from China and far east
 No entry barriers for new entrants such as new
multinationals and inclination towards foreign
brands.
 Sign of recession in the economy and political
uncertainty
6.4.2 Internal
 Upward trend in natural rubber prices

 Multi-brand dealers give preference to other
brands while pushing sales for more margins.
Chapter VII: SUGGESTION AND
CONCLUSIONS
7.1. Suggestions
After analyzing the data collected through sample survey, the

author wishes to make some suggestions and recommendations for
the overall development and improvement of service of Apollo Tyres
Ltd. Presently it needs to pay attention on the following points:
7.1.1. Building of brand image:
From the various responses received, it can be pointed out that

the first and foremost challenge in front of Apollo Tyres Ltd. is the
building of brand image. The brand image can be further improved by
applying:
• Media advertising
• Road shows and exhibitions
• Meets, conventions etc.
• Research and development
7.1.2. Entering into the 2/3 Wheelers segment:
ATL can also venture into 2/3 Wheelers tyres segment as the
countrywide sales of this segment is growing tremendously. Preference
for motorcycles is growing and the topography of the North-astern
region is more suitable for motorcycles. Thus this fast growing segment
has created a lot of opportunities for growth.
7.1.3. More incentives to Dealers:
ATL must give more incentives to dealers like cash discounts, slab-
wise discounts, etc to help them to push the sales. Also attractive awards
should be given to the dealers giving a high rate of sales in each district. Also
the multi-brand dealers should be motivated to push Apollo tyres over other
brands by convincing them of more benefits.
7.1.4. Opening of more offices in the North-East:
ATL has not been able to serve every market and every sector
in the North-East. To serve the North-East market more efficiently, ATL
should open more offices in the region. At present there are no offices
in the states of Arunachal Pradesh, Manipur, Nagaland and Mizoram.
So the company should consider opening up offices in those states.
7.1.5. Serving customers through Internet and banking

facilities:
ATL needs to focus extensively on introducing information

technology to serve its customers in a better way and to retain them.
ATL can go for accepting customer orders/complaints online, which
saves a lot of time and cost. Internet can also enable a customer to ask
lot of questions about product information and pricing options so that
he can make his purchase decision and can order his product on the
net itself. Further the company can tie-up with any banking
organization to facilitate to secure payment mechanism.
7.1.6. Sufficient number of efficient technical manpower:
To effectively handle an increasing number of

claims/complaints, the company has to make sure that it has sufficient
technical manpower with network so that action can be taken within a
specified time without any delays. Performance of service employees
should be such that they regard service/claim problems as an
opportunity to excel company’s image.
7.1.7. Concentration on exports:
In case of recession in the domestic market tyre market,

problems like over-capacity and high levels of inventory can be
overcome by concentrating upon exports of its tyres to neighboring
countries and in the international market. Apollo should strive hard to
export its tyres in the foreign markets.
7.2. Conclusions:
The tyre industry comprises of five major organizations at

the top end, contributing nearly 80 percent of the total industry
turnover. At the middle and lower levels, there are a number of small
players manufacturing low technology products such as small tyres,
tubes and flaps. Being an ancillary product, the trends in the industry
closely follow those in the automobile sector. In turn the automobile
industry is a reflection of the overall growth rate of the economy and
the various core sector industries.
The company has market leadership in the truck replacement

segment with brands such as XT7, Loadstar Super, Amar enjoying
customer preference and backed by a strong dealer network and also
enjoys significant presence in tractor OE segment and today has a
presence in the car OE segment with supplies to two of the country’s
largest manufacturers, namely Maruti Udyog Ltd. and TELCO. Today
the company has the widest portfolio for commercial vehicles, thus
offering customers enhanced choice and the right product for every
need. It continues to be innovators and pathbreakers with Farm King,
India’s first farm radial tyre, continuing to be the only one of its kind in
the industry. However it is lagging behind in the medium and
passenger car segments. The company should look at consolidating its
position in the industry with aggressive and innovative strategies,
continued focus on cost optimization and customer delight. There has
been a firming up of input prices mainly Natural rubber, which is a
major component of the raw material cost, which may affect the
margins. Also the industry’s fortunes are linked to the automobile
industry, which is cyclical in nature. Most of the raw materials are
petroleum based and their prices are linked to the movement of the oil
prices. The introduction of Kaizan tyres targeted at the price conscious
customers is a good move taken by Apollo and to face the strong
competition from other low priced brands from Ceat and Birla tyres. It is
also obsrved that exclusive dealers have the maximum share of the
sales of its tyres. The multibrand dealers give more preference to other
brands in case of more margins while pushing sales. Due to the cut
throat competition in the tyre market, it has become imperative for
Apollo tyres to motivate the multibrand dealers with more incentives to
push sales of its tyres in order to maintain it’s market share as well as
growth. Building up its brand image is essential to fight with rivals like
MRF, JK and to withstand the threat from multinationals.
BIBLIOGRAPHY
1. I.T.T.A.C. STANDARDS MANUAL; Pages: 1-06 to 1-09
2. ‘TYRE TECHNOLOGY AND MANUFACTURE'- Apollo Tyres
Ltd.
3. MARKETING MANAGEMENT - The Millennium Edition by
Philip Kotler, Prentice-Hall of India Pvt. Ltd., New Delhi,
2000.
4. ENCYCLOPAEDIA BRITTANNICA, Micropaedia, Ready
Reference and Index, X, Addenda; Page 1.
5. INDIAN AUTO - "Treading the path" by Ardeshir Ashley
Baxter; Issue: January 1999; Pages 96-104.
6. FROM QUEST TO CONQUEST-A leaflet by Apollo Tyres Ltd.
7. ANNUAL REPORT, 2003, Apollo Tyres Limited.
8. TECHNICAL DATA BOOK- Apollo Tyres Ltd.
9. Websites - (i) www.apollotyres.com
(ii) www.domain-b.com
(iii) www. indiainfoline. com

Appendix I: QUESTIONNAIRE
Questionnaire for Dealers
Dear Sir,
We are management students from New Delhi Institute of
Management. As a part of my summer training in Apollo Tyres Ltd, I
am conducting a survey on the topic “A study of the growth of Apollo
Tyres Ltd”. I hence request you to please spare a few minutes of your
precious time and answer the following questions.
I shall be highly obliged to you for your kind co-operation.
Thanking you,
Yours truly,
1. Name of the Dealer:
2. Category of the Dealer:  Exclusive  Multiple
3. Companies Dealing in (Tick the appropriate boxes):
Criteria ATL MRF Ceat JK Birla B’stone Good

year
Truck
      
LCV
      
P Radial
      
P Bias
      
4. Counter Potential: …………….
Category↓ ATL MRF Ceat JK Birla Good

year
Truck
LCV
P/ Radial
P/ Bias
5. Opinion of the dealer for the companies dealing in:
Rating Code
Excellent 1
Good 2
Average 3
Poor 4
Criteria ATL MRF Ceat JK Birla B’stone Goodyear

Product quality
      
Communication
      
After Sales
Service/claims       
Dealer
Incentive       
Appendix II: QUESTIONNAIRE
Questionnaire for Drivers/ Customers
Name: …………………………………………………………………………….
1. Please indicate the tyre brand (Apollo, MRF, JK, Birla, Ceat, Goodyear
etc…)
Rear Rear Rear Rear

Vehicle Front Front
Vehicle Wheel Wheel Wheel Wheel
Type Wheel Wheel
Number Left Left Right Right
Left Right
Inside Outside Inside Outside
HCV
LCV
2. Please Rank the following companies for each question:
Rating Code
Excellent 1
Good 2
Average 3
Poor 4
Criterias ATL MRF Ceat JK Birla B’stone Good

year
Mileage
      
Retreadability
      
Least probability of cut
expansion
      
Least probability of air
formation
      
Heavy loading
      
After sale policy(Defect
claim/Settlement)
      
Sales promotion
devices(gifts,draws,cou
pons,schemes,seminar
etc.)
      
REMARKS ( If Any) :
Appendix III: DISTRIBUTION NETWORK
Appendix IV: FINANCIAL RESULT

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7 Institutional Area

Sector 32, Gurgaon 122001

TO WHOMSOVER IT MAY CONCERN

This is to certify that Mr. Prahlad, a student of Master of Business

We wish him a bright and prosperous future.

For Apollo Tyres Limited.

Mr. Ajay Wadhawan

Apollo House, 7 Institutional Area, Sector 32, Gurgaon 122001

Submitted in partial fulfillment of the requirement of the

B.B.A (VTH) SEM

This project is the result of contribution received from a number of

First and foremost I offer my gratitude to Mr. Girish Chandra Das

It is integral part of our BBA Program to undergo TRAINING in a

To acquire a better understanding of business environment under the

To blend the practical experience acquired in the business concern

To perform a propound analysis of functioning of various departments

In order to achieve the above mentioned objectives my training

Author: Mahan Jyoti Kashyap

New Delhi Institute of Management,

Organization: Apollo Tyres Limited, Guwahati.

Duration: 2 months (3rd May- 3rd July, 2004).

Organizational Guide: Mr. Girish C. Das

(a) To analyse the market growth of Apollo Tyres Ltd. from

To aid in formulating a marketing strategy that would help in

(a) Research Approach:

(b) Research Instrument:

3. Sampling procedure: Convenience sampling as well as

2) Company-wise , Apollo Tyres Ltd. has the largest market

3) Apollo Tyres has the largest number of dealers in the

4) Apollo Tyres has been able to increase its market share

5) Reasons for achieving market growth by Apollo Tyres Ltd. :

a) Large exclusive dealer network.

b) Better tyre quality and performance.

d) Thrust on overloaded Segment

e) New generation of tyre dealers.

f) Dealer friendly policies.

g) Customer friendly policies.

 Rebuilding of brand image.

 Importance of relationship building with dealers and

 Efforts to differentiate its products from competitors.

 Apollo Tyres should give more emphasis on advertisements.

 Apollo Tyres should concentrate on increasing its exports.

 Opening of more offices in the North-East.

 Serving customers through Internet and banking facilities.

 Sufficient number of efficient technical manpower should be

 Entering into the two/three wheeler tyres segment.

 Apollo tyres should introduce a Central Call Cell with a single

 Apollo Tyres needs to emphasise on the export market of

2.1. The Apollo Vision:

‘A Leader in the Indian Tyre Industry

2.2. Core Values:

C - Care For Customers

2.3. Apollo’s Goals:

2.4. Brief History Apollo Tyres Ltd.:

Change is something Apollo as a corporation has always been

 Fastest growing tyre company in India in the HCV

 Eighteenth largest tyre company in the world.

 First tyre company in India to obtain ISO 9001

 First tyre company to introduce packaging for tubes, 2

 The tyre company to have the concept of exclusive

 The tyre major with the largest number of

2.6. General information:

 Technical collaboration: With Continental AG of