Marketing Mix Of Ceat Tyres – Ceat Tyres

Marketing Mix
By Hitesh Bhasin December 21, 2017 inTagged With: Marketing mix articles
Ceat is a public company under the flagship of RPG Enterprises. It was founded
in the year 1958 and has it’s headquartered base in Mumbai in India. This Indian
company deals in tyres and is related to the automobile sector. Improved
infrastructure has resulted in heavy demands for tyres and these have been met
successfully through superior and high-quality products.

It has set up six parameters for self-evaluation and these include

trustworthiness, quality, credible image, innovation, value and
understanding. Brand Ceat has been rated as Most Trusted Brand by its loyal
customers. Its competitors in local market are

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 MRF
 Apollo

In international market are-

 Michelin
 Bridgestone

Some of its main customers are

 Tata Motors
 Bajaj Tempo
 Maruti
 Ashok Leyland

Product in the Marketing Mix Of Ceat Tyres :

Ceat has a great global presence and is currently the second-largest tyre
manufacturer in India. It was first of its kind to get ISO/TS certification. It offers
qualitative products to its customers and has a capacity of producing 95,000
tyres on a daily basis. It manufactures tyres, flaps and inner tubes and
its product kit include the following-

 Passenger tyres for motorcycles, SUVs, cars, motorcycles, auto-

rickshaw and scooter
 Heavy duty tyres for buses, heavy-duty trucks, light commercial vehicles,
forklifts and earthmovers
  Farm tyres for trailers and tractors

Place in the Marketing Mix Of Ceat Tyres :

Ceat is one of the strongest Indian brands and it exports its products to nearly
one hundred and ten countries in the world including countries like parts of Asia,
Africa and the USA. It has six manufacturing plants in places like Baroda,
Nashik and Mumbai. It has three plants for two and three wheelers and ten
outsourcing-units for flaps, tubes and tyres. Its research and development plant
is very advanced and is located in Halol. Their distribution network is very
extensive and includes stockists and 3500 dealers all over the country.

The company has divided the sub-continent into 33 regions with a local office
for every region. Factories send the tyres to RDC or regional distribution centre
and from here to 112 CFA or carrying-forwarding-agents who supply them to
dealers as per demand. In few cases, the RDC supplies tyres directly to dealers.
For the international market, the company has tie-ups with
distribution channel of other companies, who work efficiently to provide quick
results.

Price in the Marketing Mix Of Ceat Tyres :

Ceat has been positioned amongst five top Indian companies in terms of sales
revenue it generates. It occupies 12% of the market share and earns more than
50% of its revenues from bus and trucks. The company offers premium quality
products but have kept their pricing policy reasonable as it believes that
affordable prices will result in larger sales figure and hence lead to greater
revenues. In order to deal with rising competitors, the company has also
followed a competitive pricing policy and under this, it periodically undertakes a
valuation process and sets up its prices accordingly. In the year 2011, the
company announced price cuts so that it could deal with its competitors and
also with volatile market demands.
Promotions in the Marketing Mix Of Ceat Tyres :

Ceat spends nearly forty crore rupees annually on its marketing strategy. Its
tagline is Born Tough; Take it on and its logo includes a picture of
a rhino. Brand Ceat is one of the most visible faces in India because of its
association with cricket. It was the first to introduce the Ceat-cricket-rating
system in the international arena. One of its most promising ad campaigns that
received critical acclaim and awards was The road is full of idiots. The company
has made a deal with CCD to promote its brand through CCD outlets. Ceat has
associated itself with numerous programs on television like MTV Roadies. It
was a sponsor of MTV-Chase, The Monsoon Season3.

Its promotional activities include running contests by engaging consumers and

giving away interesting gifts or coupons. Other activities include teaching safe-
road habits to children and building brand awareness through social media. It
also promotes safe driving through its association with Party-Hard Drivers. The
company has been the recipient of Gold Award in category- Best Use of Mobile
Media.

Ceat Marketing Mix

Posted in Products, Total Reads: 845

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Marketing Mix of Ceat analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and
explains the Ceat marketing strategy. The article elaborates the pricing, advertising & distribution strategies
used by the company.
Let us start the Ceat Marketing Mix:

Product:
Ceat is a leading tyre manufacturer from India. With products ranging from Ceat Grip, Ceat Zoom, Ceat Little
Master, Ceat Secura Sport, Ceat Vertigo Sport and several high mileage tyres for application in the heavy
commercial industry. All these are the product strategy in the marketing mix of Ceat tyres. Ceat manufactures a
variety of tyres for Truck and Light commercial vehicles, solid and pneumatic vehicles, farm and industrial
applications, cars and SUVs, motorcycles and scooters etc. With a manufacturing capacity of close to a lakh
tyres per day, Ceat also caters to the flap and tube markets. Flaps are used by almost all modern passenger cars
and tubes by many motorcycles and scooters (although Ceat manufactures tubeless tyres for the two wheeler
segment also)

Image: company website

Price:
Ceat is a leading tyre manufacturer and has a competitive pricing. With an annual turnover of Rs 3500 crore and
an employee strength of more than 5000, Ceat is one of the most trusted tyre brands in India and faces stiff
competition from MRF, Bridgestone and TVS tyres and therefore must price its products competitively. With an
ISP/TS 1649 2002 certification, Ceat can however command a higher price from the market for similar products
because its superior quality products easily match those of internationals standards. With a strong brand image
and R and D initiatives like tubeless rubber, and various off road applications tyres for SUVs and trucks Ceat
tyres can sometimes command a premium. Several specialized tyres are priced slightly higher because they can
be sued for traversing such difficult terrains as snow, mud, grass, muck and rocks. Of all the pricing strategies
used by other tyre manufacturers in the country Ceat utilizes the perceived value and target pricing strategies.
This gives an insight in the Ceat pricing strategy.

Place:
Ceat is a recognized local as well as global tyre company. Ceat exports its tyres to more than 110 companies.
With its mission to become the most profitable tyre company in 2016 in India, it is relying on high GDP growth,
increased local demand as well as an increased international demand. One of the most important aspects of
Marketing is the ‘place’. With a wide distribution network in India, Ceat clearly has its mission of total
customer satisfaction clearly in sight. Its wide network of distributers, dealers and retailers that Ceat tyres for all
applications are available in each state and even in remote rural places.
Promotion:
Ceat focuses a lot on marketing its products, and has managed to do that quite effectively in its promotional
strategy. It is one of the most challenging tasks to get the message of high quality Ceat tyres across to
customers, given the number of competitors in the market. Promotion helps in convincing buyers that they are
getting their money’s worth and that their product is the best in the segment. With an average spend of around
40-50 lakhs on marketing of which 2/3 is spent on BTL and the rest is spent on ATL promotions. One famous
Ceat bike tyre advertisement was very successful in driving home the point of road safety, wherein a biker
encounters a couple of idiots on the road who make riding unsafe and also jeopardise their own safety. From
tying up with CCD and Roadies on MTV, Ceat has made its presence felt when it comes to visibility. Apart
from these they also mark their visibility in shopping complexes, markets, local bazaars, highways, near
mechanic shops and often near petrol pumps. Hence, this concludes the marketing mix of Ceat tyres.

About Ceat:
Ceat, a leading manufacturer of tyres in India, was established in 1958 and was sold to Pirelli in 1970. Taken
over by the RPG group in 1982. Its tag line is Take It On. Ceat manufactures a variety of radial tyres for the
following segment of automobiles forklifts, earthmovers, tractors, motorcycles, scooters, earthmovers, trucks
and busses, light and heavy commercial vehicles as well as cars and motorcycles. Headquartered in Mumbai,
Ceat manufactures tyres at the following locations – Nashik, Mumbai and Halol. Ceat has a total market share of
20% of the local truck and the light truck manufacturing market, 11 % of the India tyre industry. It is the owner
of 6 manufacturing plants, 10 units for the outsourcing of tyres, flaps and tubes. Under the Make in
Maharashtra, Ceat plans to pump in close to 400c crores for the setting up of a new plant in Butibori near
Nagpur.
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