Z STUDY OF POSITIONING AND PROMOTION OF TYRES WITH SPECIAL REFERENCE TO APOLLO TYRES LTD. Submitted to:- INDIAN INSTITUTE OF BUSNESS MANAGEMENT PATNA Impartial fulfillment of the degree of POST GRADUTE DIPLOMA IN BUSNESS MANAGEMENT (PGDM) Under the guidance of By Mr. SHALENDAR KUMAR SINGH KALIM AHMAD AZMI Dept. of Mgt PGDM
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Z
STUDY OF POSITIONING AND PROMOTION OF TYRES WITH SPECIAL REFERENCE TO
APOLLO TYRES LTD.
Submitted to:-
INDIAN INSTITUTE OF BUSNESS MANAGEMENT
PATNA
Impartial fulfillment of the degree of
POST GRADUTE DIPLOMA IN BUSNESS MANAGEMENT (PGDM)
Under the guidance of ByMr. SHALENDAR KUMAR SINGH KALIM AHMAD AZMIDept. of Mgt PGDMIIBM PATNA ROLL-70
Z
DECLARATION
I hereby declare that this survey report entitled “Study of positioning and
Promotion of Tyres with special reference to Apollo Tyres Ltd.” has been
prepared by me for partial fulfillment of POST GRADUTE DIPLOMA IN
BUSINESS MANAGEMENT (PGDM) program under the guidance of “Mr.
Rohit Singh” Regional Manager APOLLO TYRES LTD
I hereby declare that this survey report has not been submitted to any other
organization or institute
Kalim Ahmad Azmi
Z
PREFACE
A professional course like Post Graduate Diploma In Business Management
demands in depth theoretical knowledge and practical exposure for its
application.
The course aims to groom the students professionally and offer them a
chance to work in the real environment of the corporate world, to have an
opportunity to gain experience on practical aspects and supplement their
theoretical knowledge.
A sincere effort has been made to bring about the beached fact and it is
hoped that this reports meet the given expectations and various requirements.
The PGDM participants make a humble presentation of this report to all those
persons who may have professional and academic interest in this topic.
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ACKNOWLEDGEMENT
I would like this opportunity to give our heartfelt thanks to the individuals
without whom this endeavor of ours would not have been possible. I
appreciate their help in each and every step of our long and arduous yet
fruitful and learning experience. First and foremost, I would like to express our
gratitude to our guide and facilitator of the Project,
I extend my thanks to Mr. Rohit Singh (Regional Manager) for giving
me an opportunity to do this project in this company. I am indeed indebted to
Mr. Dinesh Singh (State Manager) and Mr. Santanu Dutta (district Manager)
for his valuable and generous guidance in the preparation of this project.
I also thankful to Mr. Amit Chatterji, Mr. MD. Arif Ali (Territory
Incharge), & Mr. Ranu Prakash (Business Consultant TBR) for helping me
and guided me for the Project.
I also acknowledge my deep sense of gratitude to staff of APOLLO
TYRES LTD. Patna who made violable their valuable time and their constant
encouragement to me.
Special thanks to all the respondents who helped us in the collection of
data required for the study. I would like to thanks all the dealers of APOLLO
TYRES and who has helped in my research.
I would thank to all the respondent and customer of APOLLO TYRES.
for giving me their precious time and relevant information.
ZLast but not the least I acknowledge the blessing and support provide by
friends, family and almighty GOD.
CERTIFICATE
This is to certify that the project entitled “Study of Positioning and
Promotion of Tyre With Special Reference To Apollo Tyres Ltd.” is done
by Kalim Ahmad Azmi , student of IIBM PATNA Under my guidance and
supervision for partial fulfillment of the requirement for the award of degree
PGDM of INDIAN INSTIUTE OF BUSINESS MANEGEMENT from 23th May
2011 to 04th July 2011
The assistance and help receive during the evaluation of the project has been
fully acknowledged.
(Rohit Singh)Regional Manager
Z
CERTIFICATE OF GUIDE
This is to certify that the project report entitled “STUDY OF POSITIONING &
PROMOTION OF TYRES WITH SPECIAL REFERENCE OF APOLLO
TYRES LTD.” submitted by KALIM AHMAD AZMI is a bonafide piece of
work conducted under my supervision & guidance. It may be considered for
evaluation in partial fulfillment of requirement for the award of Degree of
PGDM this survey report has not been submitted to any other organization or
Transportation forms an integral part of the infrastructure in any economy.
Adequate transport infrastructure spurs economic activities. In developing countries like
India, transportation is the backbone of the economic development and prosperity. Since
the geographical coverage in India is vast and versatile, road transport is a very important
mode of transportation, second only to railways. The latter of course joins major cities and
towns across the country, but road transport is equally important as it links up almost all the
nooks and corners of the land. This also connects major ports and city to remotest
areas .the tyre industry fulfills the needs of the road transport sector and plays a very
important role in the automobile industry.
WHAT IS TYRE ?
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A COMPOSITE PRODUCT :
A tyre is a composite, in other words an inseparable assembly of materials with very different properties, whose manufacture demands great precision.
IT IS MADE UP OF THE FOLLOWING SEMI-FINISHED PRODUCTS :
THE INNER LINER. A LAYER OF AIRTIGHT SYNTHETIC RUBBER.This is found inside the tyre and functions as the modern equivalent of the inner tube.
THE CASING PLY.This casing is composed of fine textile fiber cords, laid down in straight lines and sandwiched in rubber. These cords are a key element in the structure of a tyre and enable it to resist pressure. In each ply of a car tyre, there are about 1400 cords, each of which can resist a force of 15 kg.
THE LOWER BEAD AREA.Its role is to transmit engine and braking torque from the rim of the tyre through to the contact patch.
THE BEAD WIRES.
ZHelp to hold the tyre onto the rim. They can bear a load of up to 1800 kg without the risk of breakage.
SUPPLE RUBBER SIDEWALLS.
Help to protect the tyre from shocks that could damage the casing, e.g. minor shocks against pavements, potholes etc. There is hard, protection rubber where the tyre joins the rim.
BRACING PLIES.Reinforced with very fine, very resistant steel cords in a rubber sandwich. These 2, (occasionally more), plies are stuck together and cross the tread area at angles of around 60º to each other. Their steel cords cross the casing cords to form braced triangles. This is known as triangulation, and it makes the crown rigid.The plies encircle the entire crown of the tyre, and perform a very complex role:they must be sufficiently rigid around the Tyres circumference that they aren't stretched by centrifugal force, thus controlling the diameter of the tyre in all conditions.they must also be rigid transversally, to resist the stresses and strains of cornering. At the same time, they must be supple enough in a vertical sense, to "absorb" deformations caused by surface variations and other obstacles.To obtain these plies, steel has to be stuck to rubber. It is very difficult to do, but Michelin has mastered the art of perfect cohesion between these dissimilar materials, which is absolutely essential.
THE TREAD.
Is laid over the bracing plies. It is the patterned part of the tyre that will be in contact with the road. The tread in the contact patch must be able to resist very significant stresses. The tread rubber compound must grip on all types of surfaces, resist wear and abrasion, and heat up as little as possible.
All that then remains is to mould in the tread pattern and vulcanize all these semi-finished products together to form what we know as a whole tyre.
Z
PRODUCT PROFILE:-
Tyre is a circular cushion of rubber that fits around the rim of a wheel of a vehicle.
It cushions the vehicle from the shocks caused by the movement over hard surfaces. The
most common tyre is pneumatic rubber tyre.
Tyres are basically of two types:-
(a) Bias tyres or Cross Ply
(b) Radial tyres
In cross ply or bias tyres, nylon or rayon tyre cords are arranged diagonally across.
ZIn radials tyres, polyesters, nylon, fiberglass or steel cords are arranged
perpendicular to the circumference.
Radial technology is an improvement over cross ply and radial tyres are priced at
25-30% premium. They are having long lasting and having lower incidence of flats.
TYRE PATTERNS
1. RIB PATTERNS: - Used mainly on front driven axle because of steering responses.
2. LUG PATTERNS: - Used mostly on rear driven axle for heavy haulage and long
distance operations.
3. SEMI-LUG PATTERNS: - Can be used on both rear as well as front axle.
4. M & S: - Known as mud & snow pattern and mostly used on rough roads.
GROWTH AND EXPANSION OF INDIAN TYRE INDUSTRIES :-
Indian Tyre Industry to Register a Growth of 9-10% in the Next 5 Years
The Indian Tyre Industry produced 736 lakh units of Tyres (11 lakh tonnes) garnering Rs.
19000 crores in FY07. MRF Ltd. was the market leader (22% market share) followed
closely by Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries
(18%) and Ceat Ltd.(13%).
The Indian tyre industry is characterized by its raw material intensity (raw material costs
Zaccount for approximately 70% of operating income), capital intensity, cyclicality, fierce
competition among the top players, low bargaining power and resulting low margins. The
top players are now focusing on branding their products and strengthening their distribution
network so as to increase their market share.
The industry derives its demand from the automobile Industry. While OEM market off take
is dependent on the new vehicle sales, replacement market demand depends on the total
population of vehicles on road, road conditions, vehicle scrapping rules, overloading norms
for trucks, average life of Tyres and prevalence of tyre retreading.
The main category of tyres produced in the country is that of Truck & Bus tyres. These
tyres accounted for 57% of the total tyre tonnage production in FY07 followed by LCV tyres
which accounted for 9% of the total tyre tonnage production. Approximately 53% of the total
tyre tonnage off take was by the replacement market, 31% by OEM and 15% by the export
market in FY07.
COMPANY PROFILE
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Alone we can do so little; together we can do so muchOur corporate identity enhancing shareholder value
VISION
A leader in the Indian tyre industry and a Significant global player, providing customer delight and enhancing shareholder value
MISSION
A journey called “Passion in Motion” to be a US$ 2 billion company by the year 2010on the three pillars of People, Quality and Technology using the rigour of the Six Sigma process.
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CORE VALUES C Care for CustomersR Respect for Associates E Excellence through TeamworkA Always LearningT Trust MutuallyE Ethical Values
The create logo represents the Apollo One family. It takes each one of us to complete a circle, it is only when each individual Apolloite successfully completes what he or she is responsible for – is success possible.
Corporate Objectives
Employee Satisfaction
Customer Delight
Revenue Growth
Operating Margin Improvements
BRANDS OF APOLLO TYRES :-
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SALES AND MARKETING :-
120 Sales, Services and Sock Points.
Z 5 Zonal offices.
19 State offices.
4000+ Business Partners.
2100+ Apollo Tyres Worlds.
190+ Apollo Radial Worlds.
160+ Tubeless Service Points.
60+ Apollo Pragati Kendra.
7 Redistribution centres.
INTERNATIONAL
Presence across 6 Continents.
Export to 60+ Countries across the World.
A RESPONSIBLE CORPORATE CITIZEN :-
Running 7 AIDS Prevention Health Care Clinics
Partnering with ILO and IFC Washington
Eye Check-up Camps for truck drivers
“Tyre Pressure Check Days” for commercial vehicles
“Safe Drive” tyrecheck camps for passenger vehicles
Collaboration with the “War Wounded Foundation”
50 former handicapped soldiers our dealers
“Monsoon Disaster Management” campaign for Mumbai
Z Emergency Medical Service in Baroda
Adoption of villages around the Limda plant
EXPANSION PLAN OF APOLLO TYRES:
Rs.2000 crore for investment in the next three years to increase its production
capacity both in India and abroad.
ATL also launched Greenfield facility in Hungary.
Invest Rs. 200 million Euro for upcoming plant in Hungary.
Hungary plant would be company service hub for its passenger car radial tyre
buyers in Europe, North America as well as other countries.
Augmenting the Passenger Car Tyre production capacity at the Vadodra unit from
the existing 10,000 Tyres to 15,000 Tyres a day by mid 2009.
TBR Tyre manufacturing capacity would be raised four fold from the present 300
Tyres to about 1100 Tyres a day.
Vadodra plant would also manufacture off the road Tyres with a triplicate pact with
construction equipment maker BEML & Coal India.
Setting up a production unit in Chennai with a capacity of 20000 Tyres by mid 2009.
Z Providing after sales support to its Bus and Truck Tyres.
Due to Radialisation in Commercial Vehicle Tyres, Company is setting up a chain of
wheel balancing allingment centre called “TRUST” , and opening its first such centre
in Salem in Tamilnadu and would later extended the chain to other cities.
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It is also
known as a science of studying how research is done systematically.
Research is, thus an original contribution to the existing stock of knowledge making for its
advancement. The purpose of research is to discover answer to the question through the
application of scientific procedures. Our project has specified framework for collecting data
in an effective manner. Such framework is called “RESEARCH METHODOLOGY”
Sample size:-his refers to the number of items to be selected from the universe to
constitute a sample. The size of sample should neither be excessively large, nor too small,
it should be optimum. The sample size for my study is 500.
ZSampling procedure: It is a way through which sampling is done. There are various
procedures like random, systematic etc. The sampling procedure for my study is
convenience sampling.
Research design: A research is simply a framework of plan for a study that guides the
collection and analysis of data. Broadly, there are two types of research design:-
(i) Exploratory Research Design, and
(ii) Conclusive Research Design
An exploratory research design is used to find out various possible alternative solutions to
the given problems.
While conclusive research design provides information that helps in making rational
decisions from available alternatives.
For the study purpose, a proper mix of these two research designs are used since it
demands various types of information.
DATA COLLECTION:
Data Collection: Information can be collected from both primary and secondary data .the
main emphasis was on secondary data in this research. The primary data has been used to
make thing clearer.
I. Primary data: Primary data are those, which are collected a fresh and for the
first time, and thus happens to be original in chapter have which includes both
open ended and closed ended questions and also personal interviewing.
ZII. Secondary data: secondary data are collected for this research from ATL News
letter, annual publications, newspapers, Magazines, book, web sites etc.
SAMPLE
A sample of owners and drivers in the city and the surrounding areas were selected on the
basis of convenience and judgment in almost all the important areas of Patna. The sample
size on an average in each of the place is about 60-70. The selected samples were
representatives of various types of owners – owning single vehicle, multi-vehicle users of
farm, Bus, Truck, Car, Jeep & LCV segment.
PROMOTION
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FOR PROMOTION OF TYRES WE ARE ORGANIZING FOLLOWING PLAN EVERY MONTH :
Direct Interaction with Customer
SMS Alert
Campaign
Exciting Offers
Questionnaire form
360* solution
After sales service
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DIRECT INTERACTION WITH CUSTOMER :
Every day Before meet with Customer & Dealers sales team use Rapid Force for
sales call
Precall :
R :- Recap/Review of last Call
A :- Appointment
P :- Prepare & Plan for the Call
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During The Call :
I :- Inspect & Intelligence
D :- Develop
F :- Fresh
O :- Order
R :- Recapitulate
C :- Courtesy
Post Call :
E :- End Call
SMS ALERT :-
Through SMS we are sending message for our latest Updates and Scheme to
dealer and also we are giving updates of Tyre claims that end user Tyre is Accepted or
Rejected or in how much money end user will get new Tyres
CAMPAIGN :
Z Every month Team Apollo organize Campaign for each tyre category like
TBR (Truck Bus Radial)
TBB (Truck Bus Bias)
PCR (Passenger Commercial Radial)
LCV (Light Commercial Vehicle)
Farm
Each Campaign will be done on different Location
CAMPAIGN PLANNER
1st stage
Campaign date decided
Venue decided
Identify correct Customer
2nd stage
Inviting customer through visiting cards
Make a call of each Customer
3rd stage
Give benefits about their tyres and also through Power Point Presentation &
oral discussion they sort out the problem of customer and also makes people
to convince for their product.
4th stage
With this they take data of each and every customer who attend the
campaign, we take data like:
Name:
Address:
Contact No:
ZNo of vehicle:
Types of Vehicle:
Tyres brand used:
Dealer Name:
5th stage
Lastly they organize lucky draw and also quiz competition. Related With their
presentation where winner gets prize.
EXISTING OFFER:
For the promotional activity the organization offers marketing scheme. For example
1) Apollo Seven Wonders Of the World
In PCR the organization has given reward of foreign trips in a dealer in see the 7 under of
the world Such schemes are very motivational. This include the dealers growth with apollo
as well as enjoy life & vacation since every year one wonder to be qualified so in a way
this particular scheme also works to retain the dealer for a long term association
2) Surprise scheme
Since the market is very competitive & price mechanism is always under threat witch
makes the dealer pass on all the incentive to the customers witch resulted in almost no
profit for the dealers.
The organization has come out with this unique scheme of giving a surprise
incentive to those who gives particular growth in their off take.
3) Speedo Sunglass Offer:
ZOn purchase of 4 Tyres of Accelere, Hawkz, Aspire 215/75 R 15 Tyres you
will get a Speedo Sunglass.
4) Value Edge Club:
the organization has also created value edge club as per their business
where as per their business they created club and among it is a very prestigious matter
higher the club they are higher the status & respect in the market.
This also to motivates dealers.
360 DEGREE SOLUTION :
The organization has diversified to expected in a way so that a 360*
degree can be given to customer the basic purpose of this is if a customer get
all facilities at one place then he does not move out and also the customer is
retain for a long time
Apollo offers 360 degree solution to its Customer by providing
1) Exchange Offer
2) Own Today Pay Later
3) Dura Tread
4) Dura Tyre
1) EXCHANGE OFFER :-
Apollo Tyres Exchange Offer is a hassle free way for customers to exchange
their Old Commercial Vehicle Tyre Casing with new Tyres at their doorstep.
The exciting offer will be regulated and processed through an issuance
of an exchange voucher against a casing which can be subsequently
redeemed on any new tyre purchase with heavy commercial vehicle category.
ZThe exchange voucher is available in five denomination to cover the three
grades of casing available in the size
of 10.00-20 and 9.00-20 used tyres.
2) OWN TODAY PAY LATER
Another initiative Own Today Pay Later sees it that customer don’t have to
think twice to be able to own a set of new tyres. With this new option
customers can pay the cost of tyre in six monthly installment while effectively
reducing the total cost of purchase. Brand covered in this scheme are 10.00-