A

SUMMER
TRAINING REPORT
ON
To Study Market Share of Apollo Tyres for Passenger Car in Radial Tyres Segment at Varanasi area

Project Report Submitted Towards Partial Fulfillment of Master of Business Administration Degree

(Affiliated to UPTU Lucknow)

(2008-10)
Submitted to:

Submitted by:

Neha Kattiyar

Sanjay Jaiswal
MBA-3rd Sem
Roll No-1313370111

Noida Institute of Engeneering and technology

Greater Noida
DECLARATION

I, Sanjay Kumar Jaiswal, a student of BBS Institute of Management Studies, Knowledge Park-III, Greater Noida,
hereby declare that this project is the record of authentic work carried out by me during the academic year 2013-2015and has not
been submitted to any other university or Institute towards the award of any degree.
An attempt has been made by me to provide all relevant and important details regarding the topic to support the theoretical
edifice with concrete research evidence. This will be helpful to clean the fog surrounding the various aspect of the topic.

I hope that this project will be beneficial for the Organization.

Sanjay Kumar Jaiswal

MBA IIIrd

Sem.
Roll No.:-1313370111

ACKNOWLEDGEMENT

At the successful completion of my summer training at APOLLO TYRES LIMITED at VARANASI . We would like to
express our gratitude and thanks to

Mr. Shashank Sharma and all the staff members of APOLLO TYRES LIMITED at

VARANASI, for the guidance , support and help, without which the completions of this project was not possible.
Equally, we are also grateful to Asst. Prof. Mr. Harsh Awasthi (summer internship project report coordinator, M.B.A.
Programme NIET), for his valuable guidance and support. I would also like to take this opportunity to express my gratitude to all our
M.B.A. teachers, who were the source of inspiration and motivation all through the program.

Finally, we would also like to take this opportunity to express my gratitude to all the members of Apollo Tyres Ltd. and
faculty members of NIET ( Greater Noida) for sharing their helpful ideas during this project .

(SANJAY JAISWAL)
MBA-III Sem.

Roll No-

1313370111

TABLE OF CONTENTS

1.

2.

INTRODUCTION

a)

About Topic

b)

About Company

SCOPE

10

13-15

16

11-12

3.

OBJECTIVE

4.

HISTORY OF APOLLO TYRES

a)

At a Glance

b)

We Believe (vision & mission)

c)

Globle Presence

17

18-19
-

20-21

22-23

24

5.

d)

Operation

25-28

e)

Executive Officer

29-30

f)

Contact us

EXECUTIVE SUMMARY

a)

Introduction

31

33

32

6.

b)

About Tyres Industries

c)

Growth of Tyres Industries

35

d)

Various Types of Tyres Segement

35-39

40-41

MARKETING STRATEGY

34

a)

Marketing mix

42-44

b)

Product profile

45-49

c)

Goles of Apollo tyres in environment

d)

Tyres safety

e)

Basic function of tyres

50
-

51-52

53

f)
7.

Golden rules for tyres selection

RESEARCH DESIGN

a)

Method of data collection

b)

Collection of data through observation

54

55-57

58

59

8.

DATA ANALYSIS

60-75

9.

SWOT ANALYSIS

76

10.

CONCLUSION

77-78

10

11.

RECOMMENDATION

79-80

12.

LIMITATIONS

81-82

13.

BIBLIOGRAPHY

83

Annexure
Questionnaire

84

85-87

11

List of tables and graphs

12

13

14

15

INTRODUCTION

16

ABOUT TOPIC

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

17

Earlier there was a sellers market, since goods and services were in short supply and the sellers use to call the shots. But, ever
since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Today,
marketers are directing their efforts in retaining the customers and customers base. Their focus has shifted towards integrating the
three elements people, service and marketing.
The customers importance has assumed imponderable proportions in todays world, because of the inherent value that the
customers command. A customers can make or break a company. It is the responsibility of every company to see that all its
customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction
and will spark off a chain reaction and spell doom for that company. In such scenario, retention of the existing customers assumes

18

diabolical proportion. Research has thrown light on some important aspects of customers retention it has been proved empirically that
acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers.
In the past, the customers was taken for a ride, as there were not many players in the fields, not much importance was
attached to product safety, quality, service and product appeal. The attitude of the manufacture was that of caveat emptor. Thanks
to the government policies on liberalization, globalization and privatization (LPG), the market scenario has changed today. Today, the
customer has a host of defense mechanism like the customers protection laws, regulation of the government, the powerful hands of
the organization, customers courts, switching to substitute or competitors that offer at competitive prices, etc. The maxim, caveat
emptor has been replaced by caveat venditor.

19

In the past, after sales service was consider as a cost center, Companies were lethargic in attending to customers complaints.
Availability of trainee service personal and quality genuine spare parts posed serious problems. However, with the rising competition,
there could not be much product differentiation, as price and quality were comparable and latest technology was to each and every
company in the field. Since, there could not be much differential a tangible assets, the companies concentrated on the intangible
assets, namely the service factor, which served as a major differentiator. Today after sales service is an important aspect of every
company, and it is no more considered as a cost center, but considered as a profit center. Every organization strives hard to retain its
existing customers at any cost since it is five times costly to get a new customers, then to retain an existing customers. Most of the
industries today use of information technology to best services to their customers.

20

OBJECTIVE

To understand the consumer behavior and perception about Apollo Tyres.

21

To assess the relative competitive position of Apollo tyres in the minds of the consumer and dealers.

To determine the market share of Apollo tyres in Varanasi.

To compare the performance of major market player with respect to their 4 Ps.

To determine the positioning strategy.

22

Scope

23

The scope of the study has been limited to a few tyres manufacturing majors. It does not extend to all the segments available
in the market.
Only Varanasi district has been covered in this study. Any development in the tyres market after July 2009 is beyond the scope
of this study.

24

25

LIMITATIONS

26

1.

Survey represent only Apollo market position: - Because this survey is conducted in Varanasi. So we cannot imagine
through it nation level market position of Apollo tyre.

2.

Non respondent: - In this survey many respondent are included which give no idea according our survey objective.

3.

Sample size is limited: - In this survey I take only 400 units as sample size. The conclusion is found out through this
sample size. So it not represents all market.

4.

Time is limited: - This survey is done within 6 to 7 week, so it may be possible that some aspect may be left.

27

5.

Wrong information: - In this survey we cannot say that every information correct because many respondents gives wrong
information it may more positive or negative.

6.

Financial problem: - Money play very important role in any work in this survey there is also effect of finance because I
have limited financ

28

EXECUTIVE
SUMMARY

29

A.

Introduction
The project work has been done for seven weeks in APOLLO TYRES LIMITED which is one of the high profile Company

among the corporate world.

30

I have worked under the guidance of District manager his responsibilities was to survey of Apollo tyres in Varanasi.
This project has been a great learning experience for me; at the same time it gave me enough scope to implement my
analytical ability. I learned at APOLLO TYRES LIMITED. One can have a brief knowledge about To Study Market Share of Apollo
Tyres for Passenger Car Radial Tyres Segment in Varanasi area all its basics through the project. Other than that the real
servings come when one moves ahead. Some of the most interesting questions regarding these topics have been covered.
I would like to give thanks to all employees of Apollo, who always helps me and provide me data where ever required.
Suggestions are always welcome.

31

B.

About Tyre Industries

Background

32

The origin of the Indian Tyre Industry dates back to 1975 when Apollo Tyres Limited set up the first tyre company in Kerala. MRF
followed suit in 1946. Since then, the Indian tyre industry has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are interdependent. Transportation industry has
experienced 10% growth rate year after year with an absolute level of 870 billion ton freight. With an extensive road network of 3.2
million km, road accounts for over 85% of all freight movement in India.
Key Issues of tyre industries
High tax usage

33

The high tax content on tyres can be gauged from the fact that the percentage of total tax to the tax excluded price for
various categories of tyres is - 44% for Truck Tyre, 41% for passenger car Radial Tyres 35%.
Review of Performance
Overall Performance
The operating margin of the representative sample of tyre companies improved during FY2008. However, the net profit margin of
the tyre companies even though improved, was still at 3%.
Performance in FY2007
The tyre industry continues to be driven by good demand growth, propelled by sustained uptrend in demand and sales of
automobiles in general, and commercial vehicles and passenger cars in particular. However, this does not get translated into

34

improved margins for the industry, as it is witnessing sustained rise in prices of raw materials like natural rubber. Additionally, the
customs duty on imports has been brought down from 25% to 20% and Special Additional Duty of 4% has been dispensed with.
.
C.

Growth of Tyre industries in India

The Indian tyre industry is expected to clock a tonnage growth of 9-10 per cent over the next five years, according to a
study by Credit Analysis and Research Limited (CARE), a noted rating firm that offers a wide range of rating and grading services
across sectors.

35

While the truck and buses tyres are set to register a CAGR (compounded annual growth rate) of 8 per cent, the LCV (light
Commercial vehicles) tyres are poised for a CAGR of 14 per cent.
According to the CARE study, the growth in the Indian tyre industry will be fuelled by the expansion plans of the automobile
companies, government's focus on development of road infrastructure and sourcing of auto parts by the global Original Equipment
Manufacturers (OEMs).
D.

Various types of Tyre segment

Tyres by Type

36

The Indian tyre industry produces the complete range of tyres required by the Indian automotive industry, except for aero
tyres and some specialised tyres. Domestic manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks,
tractors (front, rear and trailer), and off-the-road vehicles and special defence vehicles.
The scenario in India stands in sharp contrast to that in the world tyre market, where car tyres (including light trucks) have
the major share (88%) by volume followed by truck Tyres(12%). In India, however, passenger car tyres have a mere 17% share of the
overall tyre market.

Truck and Bus Tyres

37

The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2008. Every truck/bus manufactured
generates a demand for seven tyres (six regular and one spare) as against three in the case of two-wheelers and five for passenger
cars. In addition, the price of a truck tyre is significantly higher than that of a passenger car tyre (roughly 10 times) or a motorcycle
tyre. Thus the demand multiple emanating from the commercial vehicle segment is highest in value terms.
Given the regular use and heavy wear and tear of truck and bus tyres, the demand from the replacement market in this
segment worked out to 68% of the total demand for truck and bus tyres in FY2008, the OEM demand accounted for around 9% the
same year. With the Indian manufactu -rers of cross-ply tyres focusing on the export market, this segment accounts for around 22% of
the demand for truck and bus tyres.
Passenger Car Tyres

38

The passenger car tyre segment accounted for 17% of all tyres produced in India in FY2008. With passenger car
production witnessing a growth of 12% in FY2008 over the previous year, OEM demand accounted for about 33% of the total sales
that year. The replacement market accounted for around 63% of the total sales of passenger car tyres in FY2008. Exports accounted
for 4% of the total passenger car tyre demand in FY2008. With the stock of cars increasing, replacement demand is likely to continue.

39

Tyre Demand by Markets

40

41

Vehicle Manufacturers or OEMs

The demand from the OEM segment is a derived one and directly correlated to the level of automotive production. The
OEMs demand varies significantly across categories from between 8% for truck and bus tyres to over 50% for some other segments
like, PCR.
Replacement Market
The replacement market, including State transport undertakings and Government buying, accounted for around 59% of the
total tyre demand in FY2008. The demand in the replacement market depends on the vehicle population, the level of economic

42

activity, life of the products transported, kilometreage per vehicle, the price of the tyres and the quality of the existing road
infrastructure. Additionally, the replacement market, which offers better margins, is extremely competitive. The replacement market is
dominated by the PCR segment, which accounted for 22% of all tyre sales in the replacement market in FY2008.The large size of the
replacement in turn is determined by the interplay of various factors as discussed below:
The replacement demand may be lower because of longer replacement intervals and lower business mileage if the economic activity
slows down.

Replacement demand in India is higher because of a low vehicle scrap page rate.

Poor road conditions by lowering the life of tyres, have a positive impact on replacement demand.

43

Stricter enforcement of the MV Act, which seeks to prevent overloading of vehicles, will result in an increase in the life of
tyres and thus impact replacement demand negatively.

Applying a new tread or "re-treading" can extend the life of the tyre at a significantly lower cost, thereby lowering
replacement demand. In India, re-treading finds greater acceptance in the commercial segment.

Radicalization of tyres is likely to result in lower replacement demand. While car radicalization in the country has reached a
level of 65%, truck and bus radicalization stands at just 2-10%. Poor road and support infrastructure as well as traditional
vehicle designs act as a barrier to radicalization in the commercial vehicle segment. Radial technology for trucks and buses
would help increase operating efficiencies by delivering better mileage and minimizing wear and tear.

44

According to ATMA, even if only 25% of the PCR segment is radicalized, the savings in fuel costs would be around Rs. 7,500
million.

Introduction of tubeless tyres in the passenger car segment is also likely to affect replacement demand adversely

Introduction of eco-friendly radial tyres such as hyper-bonding silica technology in the passenger car segment may affect
replacement demand adversely.

45

Exports
In the light of the prevailing domestic market situation, most of the tyre manufacturers have taken to exports to reduce
inventory build-ups. In FY2008, Indian tyre exports stood at Rs. 10.8 billion (10% of the total industry) in value terms and 3.1
million in unit terms (6.5% of total production). Indian companies have currently entered into sourcing agreements (for tyres) with
neighboring countries. For instance, CEAT and J K Tyres have sourcing agreements with tyre producers in Sri Lanka and China.
This is likely to have a positive impact on tyre exports from India.
Market Players

46

Some of the major players in the Indian tyre industry are MRF, CEAT, JK Industries, APOLLO TYRES, BRIDGE STONE, GOOD
YEAR, and FALCON TYRES. The tyre industry in India is fairly concentrated, with the sample of eight companies

47

MARKETING STRATEGY

48

Strategic thinking is key to the evolution of successful marketing strategies of APOLLO

TYRES.

This

involves

the

following analyses:
(a)

Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the

market size and demand for the firms product.

(b) Finding market niches: Price, service, convenience and technology are some of the

niches in Indian market.

(c)

of the firm and competitors,

Product and service planning: Analysis of the customers promotion of the brand, both

besides an analysis of the situation in which the customer uses

(i)

the product.

Distribution: Structural changes in inventory management, mobile distribution

are some of the key factors that

are going to affect the distribution process in the Indian market.

49

(ii)

Managing for result: With pressure on costs, prices, and margins, marketers will

have

to

make

effective utilization of every rupee spent in marketing.

Market opportunity of Apollo tyres
Identification of market opportunity is critical before the management of affirm takes a decision to launch or diversify in any
product area. This involves analysis of the following:

Size of the market

Marketing strategies and the extent and quality of services rendered by other firm in the industry.

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a firms strengths and weakness

50

Market opportunity
(a)

Size of the market

(b)

How well the market is served

(c)

Prospective inches

(d)

Marketing mix required to succeed

(e)

Core competencies required

51

52

Market
segment
analysis

Industry
analysis

Demand
Condition
s

Competition
analysis

Trade
analysis
53
Market opportunity

How well the market is served

Prospective inches
Marketing mix required to succeed
Core competencies required

Size of the market:

Sizes of the market are....
i.

Demand analysis: is the core aspect of market opportunity.

ii.

Segmentation analysis: is the process of dividing the market into homogeneous sub units.

iii.

Competitor analysis: analysis of competition how well the market is served

MARKETING MIX

54

A Marketing mix is the division of groups to make a particular product, by pricing, product, branding, place, and quality.
Although some marketers[who?] have added other P's, such as personnel and packaging, the fundamentals of marketing typically
identifies the four P's of the marketing mix as referring to:Product

1.
2.

Price

3.

Promotion

4.

Place

55

56

Product
A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of
units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced
tangible object are the tyres. A less obvious but ubiquitous mass produced service is a computer operating system.

57

58

Price
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price
of product if other stores have the same product.
Place
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can
include any physical store as well as virtual stores on the Internet.

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Promotion
Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct
elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses
the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from
television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of
promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This
category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets
all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and
includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any
apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to

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create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. Broadly defined,
optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the 4Ps
marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to
be a tactical change. Making large changes in any of the four Ps can be considered strategic. For example, a large change in the
price, say from $19.00 to $39.00 would be considered a strategic change in the position of the product. However a change of $131 to
$130.99 would be considered a tactical change, potentially related to a promotional offer.
The term "Marketing Mix" however, does not imply that the 4P elements represent options. They are not trade-offs but are
fundamental marketing issues that always need to be addressed. They are the fundamental actions that marketing requires whether
determined explicitly or by default

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62

63

64

COMPANY PROFILE

65

ABOUT COMPANY
Apollo Tyres Ltd is a high-performance company and the leading Indian tyre manufacturer with revenues of ~ US$ 1 billion.
It is built around the core principles of creating stakeholder value through reliability in its products and dependability in its
relationships. The company has four manufacturing units in India and four in southern Africa, with a Greenfield facility currently
underway in Chennai, India. The company has a network of over 4,000 dealerships in India, of which over 2,500 are exclusive outlets.
In South Africa, it has over 900 dealerships, of which 190 are Dunlop Zones.

CORE VALUES:

66

APOLLO Organization has been a forerunner in the economic and social advancement of India. It always aimed at creating
job opportunities for a multitude of countrymen and to provide high quality products. It has striven to make India self reliant by
pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as developing
its own know-how. It has also undertaken industrial ventures in several other countries.
APOLLO Organization is an association of industrial and commercial companies and charitable trusts. Its member
companies, employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of
commerce.
Trusts are devoted to promoting industrial, technical and medical research, education, religious values and providing better living and

67

recreational facilities. With the spirit of social consciousness uppermost in mind, APOLLO TYRES Organization is committed to the
cause of human advancement.

Apollo Tyres No-1 Market Position

In what is being considered as a landmark decision in the highly competitive Indian tyres industry, the Advertising Standards
Council of India (ASCI) has upheld Apollo Tyres Ltd's claim of being India's No 1 tyres manufacturer in the four-wheeler tyres
segment, reaffirming APOLLO leadership position in the market.

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Expressing his happiness over ASCI's judgments, Apollo Tyres marketing director Shashank Sharma says: ''This is a
fabulous example of why all of us need to have faith in bodies like ASCI. We believe that the process of self-regulation in Indian
advertising is working for both companies and agencies. We also hope that this would encourage various players to bring superior
technology and consumer service standards and claim leadership in a more healthier and competitive manner.''
The case was started when few competitors filed a complaint with ASCI against Apollo Tyre's print advertisement, in which
Apollo Tyres announced its numero uno position in the four-wheeler tyres segment, quoting production figures compiled by
Automotive Tyres Manufacturer Association and other authentic industry sources.

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But the competitors contradicted the claim, stating the fact that market figures from a company's annual report should be
used as authentic data to claim one's leadership, not the production figures.
But ASCI considered the case at the Consumer Complaints Council on 20 JUNE 2009 and upheld Apollo Tyre's contention
that production figures, as compiled by authentic industry sources and used by Apollo Tyre to claim its leadership, is a valid and
applicable comparison platform.
Hence, Apollo Tyre's claim as No 1 tyre manufacturer in India is a perfectly valid and correct statement. This also reflects
ASCI's agreement to Apollo Tyre's viewpoint that figures, as stated in the one's annual report, could actually be misleading and could
include revenues from non-tyre-related businesses also.

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Apollo Tyre, pioneers of radial technology in India, is today India's largest manufacturer of tyres in the four-wheel segment,
including tyres for trucks and buses, LCVs, passenger cars, jeeps, tractors, and OTRs. After 25 years of pioneering world-class
technologies in India, APOLLO Tyre has recently launched the country's first eco-friendly colored tyres as well as steel-belted tractor
rear radials.

71

72

HISTORY OF APOLLO TYRES COMPANY

People deliver innovation
Innovations deliver success
A few of the difference our people made
1975

Inception

1976

Registered as a company

1977

First Plant commissioned in Perambra(Cochin, Kerala)

1991

Second Plant commissioned in Limda (Baroda, Gujarat)

73

1995

Acquired Premier Tyres in Kalamassery (Cochin, Kerala)

1996

Exclusive Tubes Plant Commissioned in Ranjangaon (Pune, Maharastra)

2000

Exclusive Radial Capacity established in Limda

2000

Established APOLLO TYRES Health Care Clinic for HIV. Aids awareness

2003

Expansion of passenger car radial capacity to 6600 tyres per day

2004

Production of Indias first H-Speed rated tubless passengers car radial tyres

2004

Support in setting up Indias first emergency medical service in Baroda

2005

APOLLO TYRES health care clinic in Udaipur in Rajasthan and Kanpur in Uttra

74

Pradesh
2006

Expansion of passenger car radial capacity to 10000 tyres per day

2006

Expansion of passenger car range to include 4x4 and all terrain tyre

2006

Acquired Dunlop tyres international in South Africa and Zimbabwe

2006

Opening of Apollo tyres health care clinic in Ukkadam, Tamilnadu

75

2006

Launch of Dura Tread, trading material and solutions

2006

Launch of Indias first range of ultra high performance V and W-speed rated

passenger car radial

2007

Launch of Regal Truck and Bus radial tyres

2007

Launch of Dura tyres, retreaded tyres from Apollo

2007

Launch of the Apollo Tennis Initiatinve and Mission 2018

76

77

78

79

Apollo Tyres Ltd is a high-performance company and the leading India tyre manufacturer. Head quartered in Gurgaon, a
corporate-hub in the National Capital Region of India, Apollo is a young, ambitious and dynamic organisation, which takes pride in
its unique identity. Registered as a company in 1976, Apollo is built around the core principles of creating stakeholder value through
reliability in its products and dependability in its relationships. Apollos present strength and market dynamism steps from its early
years of strife in establishing itself as a tyre manufacturer within the closed Indian economy. Over two decades, Apollo worked on a
portfolio of products, tuned to customer needs and an array of innovative marketing initiatives to establish itself as a leader in its
home market. Some of these include segmenting customers by their load and mileage requirements, running tyre loyalty
programmes, establishing customer contact programmes which resulted in better health and driving habits, introducing Indias first
farm radials and Indias first range of high-speed tubeless passenger car tyres. For the first time, in 2006 Apollo ventured outside
India in its quest to test itself outside its home comforts. Apollo acquired Dunlop Tyres International Pty Ltd in South Africa (since

80

renamed as Apollo Tyres South Africa Pty Ltd) and Zimbabwe, taking on southern Africa as the second domestic market. The
company holds brand rights for the Dunlop brand across 30 African countries.
In 2009, Apollo acquired Vredestein Banden B V in the Netherlands, and thereby adding Europe as its third crucial
market. The company currently produces the entire range of automotive tyres for ultra and high speed passenger cars, truck and
bus, farm, Off-The-Road, industrial and specialty applications like mining, retreaded tyres and retreading material. These are
produced across Apollos eight manufacturing locations in India, Netherlands and Southern Africa. A ninth facility is currently under
construction in southern India, and is expected to commence production towards the end of 2009. The major brands produced
across these locations are: Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein. In the three domestic markets of India, Southern
Africa and Europe, Apollo operates through a network of branded, exclusive or multi-product outlets. In South Africa the branded
outlets are called Dunlop Zones, while in India they are variously named Apollo Tyre World (for commercial vehicles) and Apollo

81

Radial World (for passenger cars). Exports out of these three key manufacturing locations reach over 70 destinations across the
world, with key comprising Europe, Africa, the Middle East and South-East Asia. For Apollo Tyres, offering the right product to the
right customer is essential. Special efforts are made to understand customer needs and segment the market accordingly. After
which, products are developed for niche applications within a larger category to enable the company to provide efficient, fuel and
cost-saving products to each customer segment. Innovation has always been an integral part of the Apollo way of doing business,
this applies as much to product development and marketing as to how the company as a whole is focused on challenging existing
boundaries. An integral part of the Apollo Tyres world is its community involvement and giving programmes directly related to its
business. In India, the focus has always been on finding ways to ensure a direct benefits to customer groups. For the commercial
vehicle community the company runs extensive HIV-AIDS awareness and prevention programmes and has established Health Care
Clinics across the country to cater to the communitys health needs. For passenger car customers the focus is on cultivating Safe

82

Driving habits. Across its manufacturing locations, the key initiatives revolve around health and education programmes. Apollo is
one of the largest corporate investors in developing sporting talent through its Mission 2018, which is focused on nurturing and
training youngsters in the sport of tennis to enable an Indian to win a Singles Grand Slan Championship by the year 2018.

83

84

85

Vision

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

86

C - Care for customer

R - Respect for associates
E - Excellence through teamwork
A - Always learning
T - Trust mutually

87

E- Ethical practices

Mission:
b.

Be a customer obsessed company

c.

No.1 Tyre brand in India

d.

Deliver enhanced value at all stakeholders

e.

Most profitable Tyre Company in India

88

f.

Enhance global presence through acquisition

g.

Motivated and committed team development for high performance organization

89

90

LOCATIONS AND GLOBAL PRESENCE

Global partnerships, global reputations

Apollo opened its first tyres plant in Perambra, 1977. Since then, we have grown to become one of the worlds biggest and
most respected tyres brands. Our operations are now worldwide.
For location details, please visit our global locations section.

91

Working for you

Many of the worlds leading vehicle manufacturers - including Audi, BMW, Indica, Sumo, Toyota, Qualis - trust Apollo and fit
our tyres as standard. Our tyre designers work closely with manufacturers. We also involve our India, South Africa and Zimbabwe
sister companies to provide the latest research and development, testing and manufacturing facilities.
For more information on original equipment fitment manufacturers. Wherever you are of distribution centres, we also supply
many retailers, including our retail chain, Hi-Q Tyres. Use this section to find all the facts and information on Apollo's heritage, policies,
global presence and commitment to the future.

92

93

94

India

95

Limda, Baroda, Gujarat

In operation since 1991
Products manufactured
Passenger car radial
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm radial & cross-ply

96

97

Perambra, Cochin, Kerala

In operation since 1977
Products manufactured
Truck and bus cross-ply
Light truck cross-ply
Farm radial & cross-ply

98

SOUTH AFRICA

99

Durban, Kwazulu Natal

In operation since 1935

Products manufactured
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm
Off-The-Road

100

Ladysmith, Kwazulu Natal

In operation since 1973

Products manufactured
Passenger car radial

101

ZIMBABWE

102

Bulawayo, Matabeleland
In operation since 1957
Products manufactured
Passenger car radial & cross-ply
Truck cross-ply
Farm
Off-The-Road
Retreading material

103

Harare, Harare

In operation since 1926

Products manufactured

104

THE NETHERLANDS

Enschede
In operation since 1946

105

106

Organizational structure of Apollo Tyres

107

108

109

110

111

Onkar S Kanwar
Chairman

Neeraj R S Kanwar
Managing Director

112

Satish Aggarwal
Chief, Manufacturing

Peter Becker
Chief, Research & Technology

113

P K Mohammed
Chief, Advisor, Research
& Technology

Rob Oudshoorn
CEO, Apollo Vredestein

114

Luis C Ceneviz
CEO, Apollo Tyres
South Africa(Pty) Ltd

Tapan Mitra
Chief, Human Resources

115

K Prabhakar
Chief, Projects

Sunam Sarkar
Director Financial Officer

116

Satish Sharma
Chief, India Operations

117

118

Apollo House
7 Institutional Area
Sector 32, Gurgaon 122001
Haryana, India
T: +91 124 2721000

119

Apollo Tyres Ltd

VI Floor, Cherupushpam Building
Shanmugham Road
Kochi 682031
Kerala, India
T: +91 484 2381902 to 3
Products
The Apollo Tyres ltd. Is leading company for all tyres-manufacturing company in India and The Apollo Tyres Company
manufacturing the tyres for the entire segment (TRUCK, LCV, PCR, FARMS, OTR ).

120

121

122

123

124

H/V speed rated

Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride

125

W/Y speed rated with a quick steering response

for a sporty performance
Unidirectional V-shaped tread design resists aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance

126

S/T speed rated

Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise

127

128

129

130

MC 20

SH 41

SC32-SUV

131

SE 66

SH 19

SG 47
132

133

GOALS OF APOLLO TYRES IN ENVIRONMENT

At Apollo, we are committed to protecting and respecting the environment. Leading
vehicle manufacturers use our tyres as original equipment because they trust and respect our
quality, development techniques and innovation. However, this alone is not enough. We must also
meet the demands of the environment by adopting sustainable practices and using our resources
134

more efficiently. We practice the latest manufacturing and management techniques and work only
to the highest standards as outlined in international standards.

In practice
Here are some of our activities:

135

Introduction of an Environmental Management System (EMS) as part of our integrated

quality, environment, health and safety management system .

Promotion of EMS to our customers, suppliers and contractors .

Environmental performance targets to meet our legal, operational and business

requirements.

Regular audits and reviews on our environmental performance

136

Environmental awareness training for all directors and senior management .

Appointment of environmental co-ordinators to ensure our EMS is implemented and

maintained in line with ISO 14001

Continual re-alignment of our environmental policy and business objectives

137

TYRES SAFETY
138

(TYRES MAINTENANCE YOUR MOST IMPORTANT SAFETY ITEM)

Your tyres are the only contact between you and the road and, like your vehicle, they too
require regular maintenance.
HERE ARE A FEW TIPS

139

Check your tyre pressures regularly, once a fortnight is recommended and ideally when
your tyres are cold. Inspect tread and sidewalls for cuts and abrasions, bulges, unusual wear and
road damage. If the tyres receives a severe impact, ask your tyres retailer to check for internal
damage. Do not repair cuts in sidewalls of radial play tyres. Avoid using 'sealants' or other liquid
preparations to prevent deflation. These may cause the valve to stick open slightly, causing
pressure

loss

and

indirectly

causing

corrosion

of

steel

belts.
140

Driving on under inflated tyres is almost certain to cause serious damage, always inflate
tyres to the suggested pressure. Take action immediately to rectify any unusual sounds or
vibrations. Tyre balance and vehicle wheel alignment should be checked regularly, (ie every
10,000km), especially if your tyres are subjected to rough roads or aggressive driving.
Tyre wear on front wheel drive vehicles is a little higher and therefore, attention to tyre pressures
as well as rotation should be made on a regular basis.
Tyre Pressure
141

Maintaining the correct pressure is the easiest, yet most important thing you can do to get
the best performance, economy and safety from your tyres. Information relating to the correct
pressure should be available from your vehicle's tyre placard however, considering these points
may help:

142

HERE ARE A FEW TIPS

Different driving conditions require different pressures. For example, a higher pressure is
usually recommended for high speed driving or when carrying or towing a heavier than normal

143

load. Seek advice on what is the best for you and your car. Tyres pressure should be checked when
tyres are cold, as pressures will increase when tyres warm up.
Under inflation of tyres can cause them to experience uneven or rapid tread wear, as well
as lead to an increase in fuel consumption. In addition, under inflation reduces your vehicles
braking and handling capabilities, and can ultimately lead to serious tyre failure. Where possible,
144

carry your own tyre pressure gauge. Sealing valve caps must ALWAYS be used, the best being the
metal type. If you require any assistance with the pressure of your tyres, see your local tyre
retailer.
TYRE ROTATION

145

Regular rotation of tyres is a proven method for promoting even wear and therefore
extending tread life. If uneven wear has occurred, this may be due to worn suspension
components, vehicle misalignment or incorrect tyre balance. These concerns cannot be corrected
by simply rotating the tyres. Your local tyre retailer should correct these problems.

146

Front to back same side rotation is acceptable when tyres are wearing unevenly. If the
spare is included in the rotation it should be exchanged with the tyre allocated to the right hand
rear position.

147

Basic Function of Tyres

1.

To roll

2.

To carry a load
148

3.

To steer the vehicle

4.

To transmit braking force and power output

5.

To absorb (noise and mechanical vibration)

6.

To last

7.

To handle speed
149

8.

Low noise

9.

Low rolling resistance

10.

To look goods

150

151

The golden rules for tyres selection

152

1.

This rule applies to all categories of tyres, with the exception of passenger.

2.

Fit the largest Tyre size possible, as recommended by the vehicle.

3.

Use the lowest ply rating-this does not apply in the case of steel cord Radial Truck tyres.
153

4.

Recommend the correct Tyre Pressure for the Tyre size Ply rating, Load and operating

condition.
5.

This pressure should ideally be as low as possible, without under inflating the tyres.

154

155

156

157

RESEARCH
158

DESIGN
159

160

Research Design
161

Every project work requires research, successful completion of any project and getting the
genuine results from that depends upon the research method used by the researcher. The whole
research process used by us is as follows:1.

Problem Formulation

2.

Research design
162

Sample design

4.

Source of data

5.

(a)

Primary source of data

(b)

Secondary source of data

Collection of data
163

6.

Analysis of data

7.

Interpretation of data

8.

Project report and writing

Research
164

Research can be defined as a careful investigation or inquiry especially through search for
new facts in any branch of knowledge. Redman and Mory defines research as a systematized
effort to gain new knowledge.

165

Marketing Research
Marketing Research is the systematic gathering, recording and analysis of data about
marketing problems to facilitate decision-making. Marketing research is the systematic design,

166

collection, analysis and reporting of data and finding relevant to a specific marketing situation
facing the company.

Methods of data collection

167

The key for useful systems is the selection of the method for collecting data and linking it
to analysis and decision issue of the action to be taken.
The accuracy of the collected data is of great importance for drawing correct and valid
conclusions from the detailed investigations.
There are two types of data primary and secondary.

168

1.

Primary data: - The primary data are those which are collected a fresh and for the first

time and thus happen to be original in character. There are several methods of collecting primary
data, particularly in survey and descriptive researches.
Some important methods of collecting primary data are:
a. Observation Method
169

b. Interview Method
c. Questionnaire
d. Schedules
2.

Secondary data: - Secondary data are used means that are already available i.e. they refer

to the data which have already been collected and analyzed by someone else and which have
170

already been passed through the statistical process. Secondary data may either be published data
or unpublished data.

COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular, particularly in case of big enquires. It is
being adopted by private individual research workers, private and public organization, and even
by government. In this method questionnaires are sent to the person concerned with the request to
171

answer the question and return the questionnaires. A questionnaire consist of a number of
questions printed, typed in a definite order on a form or set of forms. The respondents (dealer)
have to answer the question on their own.

172

COLLECTION OF DATA THROUGH OBSERVATION

We also use this method for the purpose of data collection. In this method we have taken
the sample of 100 vehicle models like INDICA, SENTRO, WAGONR, TATA SUMO,
TOYOTA, ZEN, SCORPIO, BMW, OCTAVIA, JAZZ, and QUALIS etc (four Wheelers).
173

Through my personal observation I have observed the tyres used in the above models and
presented them graphically.
This observation was done in the various areas of Varanasi like Nadeshar, Cant.Station,
Taj Hotal, Patal Nagar, Chauka Ghat, Andhra Pull, Raja Talab, Lahartara, Rohaniya,
Vishal Travel, and PCF Plaza, etc.

174

175

176

177

DATA
178

ANALYSIS
179

180

181

CONSUMER BEHAVIOR & MARKET SHARE OF APOLLO TYRES

Objective: - Analysis of Fitment of APOLLO TYRES by the personal contact, Interview,
questionnaire & fitment survey.
Place: - VARANASI
Sample Size: 182

(a) 100 Customer data collection

(b) 3 campaign
(c) Fitment survey of 100 vehicles
Methodology: - The data collected by two methods.
I.
II.

Primary data collection.

Secondary data collection.
183

In primary data collection, we have data collect from the personal contact, interview,
schedules and questionnaire. In secondary data, the data are also available and we have observed
through net and company.
UTILITY: - From the collection of data we analyses the consumer behavior & market share of
various brand of Apollo Tyres & take valuable information of tyre industry.
Results: - The result is divided into the following categories:184

A:-FITMENT SURVEY
o Analysis of Front Tyres.
o Analysis of Rear Tyres
o Over all Analysis (Front + Rear)

185

ANALYSIS

186

COMPANY

NO. OF TYRES

% SHARE

BRIDGE STONE

34

17 %

JK

38

19 %

CEAT

16

8%

APOLLO

48

24 %

MRF

56

28 %

GOODYEAR

3%

OTHERS

1%

187

ANALYSIS OF FRONT TYRES

(Four Wheelers) (200 Tyres)

188

189

190

191

GRAPHICAL REPRESENTATION OF MARKET

192

SHARE IN PASSENGER CAR RADIAL (Four Wheeler Front Tyres) VARANASI.

193

60
50
40
30

NO. OF TYRES

194

60
50
40
30

NO. OF TYRES
195

R
F

LL
O

TH
ER
S

0
O

G
YE OO
A D
R

A
PO

C
EA
T

JK

ST
ON
E

BR
IDG

10

196

197

198

199

200

ANALYSIS OF REAR TYRES

PASSENGER CAR (Four Wheelers) (200 Tyres)
201

COMPANY

NO. OF TYRES

% SHARE

BRIDGE STONE

43

21.5 %

JK

40

20 %

CEAT

12

6%

APOLLO

55

27.5%

MRF

38

19 %

GOOD YEAR

4%

OTHERS

2%

202

GRAPHICAL REPRESENTATION OF MARKET

SHARE IN PASSENGER CAR RADIAL (Four Wheeler Rear Tyres) VARANASI
203

204

60
50
40
30

NO. OF TYRES
205

LL
O

TH
ER
S

G
YE OO
A D
R

M
R
F

A
PO

C
EA
T

JK

B
R
ST ID
O GE
N
E

10
0

206

207

208

209

OVER ALL ANALYSIS (FRONT+REAR)

Passenger Car Radial (Four Wheeler) (400 TYRES)

210

COMPANY

NO. OF TYRES

% SHARE

BRIDGE STONE

77

19.25 %

JK

78

19.5%

CEAT

28

7%

APOLLO

103

25.75 %

MRF

94

23.5 %

GOOD YEAR

14

3.5 %

OTHERS

1.5 %
211

212

213

214

GRAPHICAL REPRESENTATION OF MARKET

SHARE IN (Four Wheeler Tyres) VARANASI

215

216

120
100
80
60

NO. OF TYRES
217

R
F

LL
O

TH
ER
S

G
YE OO
A D
R

A
PO

C
EA
T

JK

B
ST RID
O G
N E
E

20
0

218

219

220

221

222

CUSTOMER MEETING
Meeting with Four wheeler owners:A-Nadeshar
223

B-Patel Nagar
C-Taj Hotal
D-Vishal Travels
E-Chauka Ghat
F-Cant-Station
224

G-Andhra pull
H-Raja Talab

CAMPAIGN
Nadeshar
225

Taj Hotal
Chauka Ghat

226

ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN

227

When we asked about the general rating that customers might give to Apollo Tyres has
whole the feed back that they gave was as follows approx 23% customer said that Apollo Tyres is
excellent and 56% customer said that Apollo Tyres is very good, 21% customer said that Apollo
Tyres is average and know body is said that Apollo Tyres is below average. The graph below
shows the following information.
228

229

When asked about where do most of the customers go for purchasing Apollo Tyres the feed back
that were received from customers are as follows around 75% customer said that they purchase
Apollo Tyres from the exclusive dealer of Apollo Tyres, 20% customer said that they purchase
from MBDs (Multi brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5% customer said that they purchase Apollo Tyres from other
tyres traders the graph below gives better information.
230

231

232

When asked about how easily customer get Apollo Tyres the response was follows approx
82% customer said that they get Apollo Tyres very easily whenever they require them from the
nearest dealer and 18% customers said that there is always a scarcity of the most popular brands
of Apollo Tyres Ltd. Such as Aspire, Acelere Sportz, Acelere, Hawkz and Amazer XL .
233

The Graph below shows the exact position.

234

235

236

% AGE OF SATISFIED AND DISSATISFIED USER OF

APOLLO TYRES

237

238

The 83% customers are fully satisfied with the Apollo Tyres and just 17% customers are
not satisfied with the Apollo Tyres . We met the different customers. Customer said that the
quality of Apollo Tyre is very good. Tyre is very costly but the performance of Apollo Tyre is
better than other tyres. They said that the claim policy of Apollo Tyre is very good. Several
customers are very friendly and the Co-operate in our work but few customers behaved very
rudely. Customers are happy with the campaign and they said that they gain a lot of knowledge
239

from the campaign and they said that campaign should be organized continuously in different
area.
These things give us a good experience and obtain good knowledge about customers
attitude.

SWOT ANALYSIS
STRENGTHS 240

Heavy range of products.

Brand awareness

Best promotion by display

Advertisement
241

WEAKNESSES

SVS depended on APOLLO

Shortage

No proper replacement of damage

242

Low margin for shopkeeper

No proper inspection of salesman

OPPORTUNITIES

addition of outlet

Improve the market of APOLLO TYRES by giving some more advantages

243

THREATS

More satisfaction from local wholesale market, they can deduct the number of
Outlets.

Dissatisfaction due to improper handling

244

Without proper inspection, salesman may be careless.

245

246

CONCLUSION
247

248

249

CONCLUSION
1. The market share of Apollo Tyres in Varanasi more than 25.75 % in Four wheeler Segment
(Passenger Car Radial).
2. Approximately 87% customers are satisfied with the Apollo Tyres.
250

3. Rate of Apollo Tyres are not high against with the other Company tyres.
4. After sale service (Claim) of Apollo Tyres is very good.
5. Approx 82% customer said that they Apollo Tyres very easily whenever they require them
from the nearest dealer.

251

6. Around 75% customer said that they purchase Apollo Tyres from the Exclusive dealer of
Apollo Tyres Ltd.

252

253

254

255

RECOMMENDATION
256

257

258

RECOMMENDATION

259

In our market analysis I found many block hole in marketing strategy and Apollo product
Existing product want some improvement according change of technology , competition and
spread of market.
In my experience which I get within 45 days. I would like to suggest following points.

260

1. Made heavy duty tyre according demand of customer.

2. Expand its advertisement, emphasis on personal advertisement.
3. Open more outlets in order to insure availability of product (tyres) in VARANASI
market.
4. Make claim policy easy and give claim on demand.
261

5. To give more discount and gift in order to competitive its competitor

6.

Provide facilities to payment in installment.

7. To provide cheaper tyers with advanced quality.

8. To make better study of its competitors strategy for monopoly in market.

262

263

BIBLIOGRAPHY

MARKETING MANAGEMENT:264

By Philip Kotler
RESEARCH METHODOLOGY:By C.R. Kothari
WEBSITES:265

www.apollotyres.com
www.google.com
www.weekypedia.com

266

267

268

269

Annexure
270

271

QUESTIONNAIRE

272

Name-

KM done by vehicle-.

Address-

Condition of Tyres-..

...

Mobile no.-.
273

1:- Have you heard of Apollo Tyres in PCR?

(a) Yes

(b) No

2:- Are you satisfied with the radial car of Apollo Tyres?
(a) Yes

(b) No

(c) Dont know.

274

3:- Which brand of Apollo tyres do you use?

(a) Amazor XL (b) Acelers (c) Hawkz (d) Aspire (e) None of the above.

4:- Which tyre do you prefer in your used TL or TT.

5:- Which company TL tyres do you used?
275

(a) MFR (b) Apollo (c) Michelin (d) CEAT (e) JK (f) Other.

6:- Which company TT tyres do you use?

(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) JK (f) CEAT

7:-

which company tyres do give maximum mileage?

276

(a) Apollo (b) MRF (c) Michelin (d) Bridge stone (e) CEAT (f) JK

8:- Which company produces better after sales service?

(a) Apollo

9:-

(b) MRF

(c) Michelin (d) Bridge stone (e) CEAT (f) JK

What type of warranty should company give?

277

(a) Conditional
10:-

(b) Unconditional

Which company gives fastest claim?

(a)Apollo (b) MRF (c) Michelin (d) Bridge stone (f) none of the above

11:- What is time period you change the tyres?

(a) > 1 year (b) > 2 year (c) > 3year

(d) >4 year (e) none of the above

278

12:-

Which company tyre is maximum accepted by the customer?

(a) Apollo

13:-

(b) MRF (c) Michelin (d) Bridge stone (e) JK

What is the life expectancy of Apollo tyre?

(a) > 1 year

(b) > 2 year (c) > 3year

(d) >4 year

(e) none of the above

279

14:-

Which brand of Apollo in PCR gives maximum services?

(a) Hawxz

(b) Acelere

(c) Amazor XL

(d) Aspire (e) dont know

15:- Which brand of other company do you like most on the grand of design and
service?
(a) MRF

(b) JK

(c) CEAT (d) Bridge stone (e) Yokohoms (f) Michelin

280

16:-

How to promote the Apollo tyre in the market?

(a) Print media

(b) Electronic media (c) Service CAMP

(d) Consumer meets (e)

Other

281

17:-

If you are not satisfied please give some suggestions?

.
282

Signature-
283

Date-

284

285