CHAPTER –I

INTRODUCTION AND DESIGN OF THE STUDY

Market potential is the entire size of the market for a product at a specific time. It
represents the upper limits of the market for a product. Market potential is usually
measured either by sales value or sales volume.

An important step before moving forward with a product is determining its market
potential. In this lesson, you'll learn about market potential, examine a method to analyze it,
and read through some examples. A short quiz follows.

Definition

Market potential is the entire size of the market for a product at a specific time. It
represents the upper limits of the market for a product. Market potential is usually measured
either by sales value or sales volume. For example, the market potential for ten speed
bicycles may be worth $5,000,000 in sales each year. On the other hand, the market potential
for motorcycles may be 500,000 units each year, which is a measure of sales volume rather
than sales value. Keep in mind that market potential is just a snapshot in time. It's a fluid
number that changes with the economic environment. For example, rising and falling interest
rates will affect the demand for products that are typically financed, like cars and houses.

A market is defined as the sum total of all the buyers and sellers in the area or region
under consideration. The area may be the earth, or countries, regions, states, or cities.
The value, cost and price of items traded are as per forces of supply and demand in a market.
The market may be a physical entity, or may be virtual. It may be local or global, perfect and
imperfect.

Analysis of Market Potential

Determining the market potential of a product is part of a successful marketing

process and requires marketing research. You'll need to examine at least three factors that
will determine whether the market potential of your product is worth the investment. You
need to analyze your potential customer base, your competition, and the current
environmental conditions that may affect market potential.

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1.1 INDUSTRY PROFILE

Indian tyre industry has been witnessing tremendous growth for the past few years on
account of growth in automobiles demand, especially in passenger vehicles and two-wheeler
segments. In fact, availability of raw material (natural rubber) and ultramodern production
facilities has led the country to emerge as one of the world’s most competitive tyre markets.
Driven by the strong demand in automobile OEM sector and replacement market, the India
tyre industry has been witnessing stupendous growth from since the last two fiscal years.

Further, according to our research report, “Indian Tyre Industry Forecast to 2015”,
the tyre production in India is anticipated to reach 191 Million Units by the end of FY 2016.
Moreover, manufacturers are expected to invest huge amount into the industry over the next
few years, with a major proportion of this investment directed towards the radial tyre capacity
expansion.

Our study also finds out how tyre manufacturers are coming up with new technologies
to provide customers with better products and services. The concept of ‘green tyres’ is
becoming a paradigm of the country’s competitive edge. Technologies like self inflation by
good year and run flat tyre (RFT) by bridges tone are paving the way in Indian market. This
new category of tyres is now being widely accepted in India. Several green field projects are
also there in pipeline to facilitate an increase in the domestic production capacity to meet the
growing tyre demand in the country.

During the course of our study, it has also been found that India’s market for radial
tyres in commercial vehicles section is still in its infancy. The passenger car segment
switched to radial tyres in a short period of time, with radial tyre penetration level for the
category reaching 100%. However, penetration level of radial tyre has also started to increase
rapidly in the light commercial vehicles and truck & bus segment. This segment will be the
largest growth area over the next few years.

We have found that companies are also looking for overseas plantation of rubber to
meet their raw materials need which will help the companies to acquire raw material at
cheaper prices. Apart from this, we have done the tyre manufacturing cost analysis in our
report and found that raw material account for the major share in total cost. In addition, we
have separately analyzed various raw materials cost in our report.

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Further, tubeless tyres are gaining ground in Indian market as almost all the automobile
manufacturers are launching their vehicles with tubeless tyres. This shows that tubeless tyre
market will exhibit tremendous growth in the coming years.

Our report, “Indian Tyre Industry Forecast to 2015”, evaluates the future growth
potential of India’s tyre industry, and provides statistics and information on market structure,
tyre production by segments, exports and imports trends. Tyre market projections, in value
terms, have been provided for all prominent segments, including passenger cars, utility
vehicles, multi-purpose vehicles and two-wheelers.

Besides that, through the section of key players, we have tried to provide the insight
of current market scenario and existing competition to our customers. Additionally, to
provide clearer picture of competitive landscape, we have also included future plans &
strategy of key players coupled with the comprehensive analysis of their strengths and
weaknesses. All the above information covered in report will provide clients with cutting
edge market intelligence and help them make sound investment decisions.

Market profile

While the tyre industry is mainly dominated by the organised sector, the unorganised
sector holds sway in bicycle tyres. The major players in the organised tyre segment consist of
MRF, Apollo Tyres, Ceat and JK Industries, which account for 63 per cent of the organised
tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear
India, with 11 per cent, 7 per cent and 6 per sent share respectively. Dunlop, Falcon, Tyre
Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are
some of the other players in the industry. MRF, the largest tyre manufacturer in the country,
has strong brand equity. While it rules supreme in the industry, other players have created
niche markets of their own

Sector specifics

The tyre industry is a major consumer of the domestic rubber production. Natural
rubber constitutes 80 per cent of the material content in Indian tyres. Synthetic rubber
constitutes only 20 per cent of the rubber content of a tyre in India. Worldwide, the ratio of

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natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic rubber, rubber
chemicals are also widely used in tyres.

Most of the RSS-4 grade natural rubber required by the Indian tyre industry is
domestically sourced, with only a marginal amount being imported. This is an advantage for
the industry, since natural rubber constitutes 25 per cent of the total raw material cost of the
tyres.

The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and
Styrene Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is
mainly used in the radials for passenger cars. Synthetic rubber accounts for 14 per cent of the
raw material cost. Unlike in the case of natural rubber, India imports 60 per cent of its
synthetic rubber requirements.

Apart from rubber, major raw materials are nylon tyre cord and carbon black. The
former is used to make the tyres strong and impart tenacity to it. The latter is responsible for
the colour of the tyre and also enhances the life span of the tyre. Nylon tyre cord comprises
34 per cent, while carbon black accounts for another 13 per cent of the raw material cost. In
India, the carbon black used is of the N660, N220 and N330 variety.

To sum up, the tyre industry is highly raw-material intensive, with raw material costs
accounting for 70 per cent of the cost of production. Fortunately for the industry, the rubber
and carbon black prices have taken a beating recently, which means lower costs for the tyre
industry. The export-import policy allows free import of all types of new tyres and tubes.
However, import of retreaded tyres, either for use or for reclamation of rubber is restricted.
This has led to used tyres being smuggled into the country under the label of new tyres.
Though tyre import and all raw materials for tyres except natural rubber are under open
general license (OGL), only import of natural rubber from Sri Lanka is eligible under OGL.

Sector trends

Crossply tyres have been used in India for several decades. In these tyres, the ply
cords run across each other or diagonally to the outer surface of the tyre. Rayon and nylon
tyre cords are used as the reinforcing medium. These tyres can be retreaded twice during their
lifetime and are hence preferred by Indian transport operators who normally overload their

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trucks. A vehicle with the normal carrying capacity of around 12 tonnes is usually loaded
with double the capacity. Moreover, one also has to contend with the bad suspensions and
bad road conditions. No wonder, 95 per cent of the tyres used in India are crossplies.

Radial tyres have their cords running radially from bead at 90 degrees angle to the rim
or along the outer surface of the tyre. The reinforcing mediums used in these tyres are
polyester, nylon, fibreglass and steel. Hence, these tyres are 20 per cent more expensive than
the crossplies. But they have a longer life and provide lower fuel consumption. The unhealthy
condition of the Indian roads has resulted in radial tyres accounting for only 5 per cent of the
tyre industry as against a global trend of 60 per cent. With two-thirds of the capacity of all
major tyre manufacturers being reserved for radials, this is a real cause for concern.

Outlook

Globally, the OEM segment constitutes only 30 per cent of the tyre market, exports 10
per cent and the balance from the replacement market. In India, the scenario is quite different.
Nearly 85 per cent of the total tyre demand in the country is for replacement. This anomaly
has placed the retreaders in a better position than the tyre manufacturers. Retreading is
looming over the tyre industry as a colossal threat. The Coimbatore based Elgi Tyres and
Tread Ltd., the largest retreader in India, is giving the tyre barons sleepless nights.

Simply put, rethreading is replacing the worn-out tread of the old tyre with a new one.
The popularity of rethreading stems from the fact that it costs only 20 per cent of a new tyre
but increases its life by 70 per cent to 80 per cent. Most of the transporters in India retread
their tyres twice during its lifetime, while a few fleet owners even retread thrice. In their
zealousness to economise costs, they overlook the reality that retreading reduces the quality
of the tyre. It is highly popular in the South unlike in the North where the transporters
overload their trucks and have to ply their vehicles in a rough terrain an environment in
which buying a new tyre is the best option. Though retreading has penetrated 25 per cent of
the tyre market, it has not made much of a dent in the rapidly growing two-wheeler and
passenger car segments.

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AT PRESENT THERE ARE 40 LISTED COMPANIES IN THE TYRE

Key Features Major players are MRF, JK Tyres, and Apollo Tyres sector in
India. & CEAT, which account for63 per cent of the organized tyre market. The other key
players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7
per cent and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited
(TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other while the
tyre industry is largely significant players in the industry. dominated by the organized sector,
the unorganized sector is predominant The industry is a major consumer of the with respect
to bicycle tyres. domestic rubber market. Natural rubber constitutes 80% while synthetic
rubber constitutes only 20% of the material content in Indian tyres. Interestingly, world-wide,
the proportion of natural to synthetic rubber The sector is raw-material intensive, with raw in
tyres is 30:70 Total material accounting for 70% of the total costs of production production
figures in tonnage: 11.35 lakh MT & total production of Current level of tyres in all
categories: 811 lakh (2007-08) radialization includes 95% for all passenger car tyres, 12%for
light commercial vehicles and 3% for heavy vehicles (truck and bus) Restrictions were placed
on import of used /retreaded tyres since April Import of new tyres2006 & tubes is freely
allowed, except for radial tyres in the truck/bus segment which has been placed in the Total
value of tyre exports form restricted list since November 2008 The major factors India is
approximately Rs 3000 crore (2007-08) affecting the demand for tyres include the level of
industrial activity, availability and cost of credit, transportation volumes and network of
roads, execution of vehicle loading rules, radialization, retreading and exports.  

Key Features

At present there are 40 listed companies in the tyre sector in India.

 Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63
per cent of the organized tyre market. The other key players include Modi Rubber,
Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent and 6 per cent
share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-
Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players
in the industry.
 While the tyre industry is largely dominated by the organized sector, the unorganized
sector is predominant with respect to bicycle tyres.
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  The industry is a major consumer of the domestic rubber market. Natural rubber
constitutes 80% while synthetic rubber constitutes only 20% of the material content in
Indian tyres. Interestingly, world-wide, the proportion of natural to synthetic rubber in
tyres is 30:70
 The sector is raw-material intensive, with raw material accounting for 70% of the total
costs of production
 Total production figures in tonnage: 11.35 lakh MT & total production of tyres in all
categories: 811 lakh (2007-08)
 Current level of radialization includes 95% for all passenger car tyres, 12% for light
commercial vehicles and 3% for heavy vehicles (truck and bus)
 Restrictions were placed on import of used /retreaded tyres since April 2006
 Import of new tyres & tubes is freely allowed, except for radial tyres in the truck/bus
segment which has been placed in the restricted list since November 2008
 Total value of  tyre exports form India is approximately Rs 3000 crore (2007-08)
 The major factors affecting the demand for tyres include the level of industrial
activity, availability and cost of credit, transportation volumes and network of roads,
execution of vehicle loading rules, radialization, retreading and exports

Tyre supplies are targeted and marketed primarily to the following categories:
Replacement market, Original Equipment Manufacturers’, Export, Government Supplies and
State Transport Undertakings. The replacement market is significant for manufacturers of
tyres in the category of motor cycles, scooters/mopeds and tractors, while the OEM segment
is significant for the category of passenger cars and jeeps. 

Acquisition of Technological capabilities

Radialisation has been a significant dimension in the acquisition of technological

capability in the Indian tyre industry. The degree of radialisation is a clear indicator of the
status of road development, vehicle engineering and the economy in general. Inspite of some
constraints and limitations, the tyre companies in India have kept pace with the technological
improvements that radialisation signifies and offered state-of-the-art products, comparable to
the best in the world. Radialisation is linked to factors such as road development, overload
control and retreading infrastructure. Some of the advantages of radialisation are additional
mileage, fuel saving and improved driving. However, attempts towards radialisation have not
taken off at the expected pace due to factors like lack of suitability of Indian roads for plying
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of radial tyres, older vehicles not possessing suitable geometry in terms of fitment,
unwillingness of the Indian consumer to pay higher prices for radial tyres etc. Nevertheless,
the scenario is radically different for the passenger car tyre segment, where radialisation has
crossed 95%. In the medium and heavy commercial vehicle segment, the level of
radialisation is comparatively poor, i.e. merely 4% and in the LCV segment; it is 15%.

Technology generation

Technology generation in the Indian tyre industry is essentially geared to

development research, involving the change of tread design, reinforcement material etc. Most
of the major players do not engage in basic research due to the high costs involved. The
source of technology for the domestic firms has been through reverse engineering, joint
ventures and collaborations.

The emphasis given by Indian tyre companies to applied research and the setting up of
well-equipped in-house R&D centers by the companies, which are manned by experts and
experienced professionals, have also helped in technology upgradation. Indian tyre
technology has exhibited versatility in maintaining inflow of technology through foreign
collaborations and tailoring the same to Indian needs. R&D is essentially business or market
driven. However, raw material suppliers could also help in conceiving new projects.
Compound development and in-process problems have been the main thrust of in-house R&D
in the Indian tyre industry. (Iyer & Upadhyay, 2008)

A significant proportion of R&D effort in the tyre sector is carried out by four or five
top companies. The proportion of raw material expenditure in relation to sales has witnessed
a sharp spurt in 2007. The proportion of exports to total sales continues to be negligible in the
tyre sector and a major portion of the sales revenue is garnered through the domestic market.

Tyre technology up gradation is an extremely difficult process, particularly in the

Indian scenario, due to several factors. First, since tyre technology encompasses various
disciplines such as polymer, chemical, steel etc. compromises have to be made in the up
gradation of technology because of a) the conflict and complimentary inherent in these
disciplines, b) the usage pattern of the tyres and c) the cost factor. Further, a tyre’s
performance could be affected due to factors such as the weather, loading pattern etc. Despite
these bottlenecks technology up gradation in Indian tyre industry during the last few decades

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has been significant. This has been possible to some extent due to government approvals of
collaborations with MNCs in this sector. The emphasis given by Indian tyre companies to
applied research, the setting up of well-equipped in house R&D centres by large tyre
companies, manned by experts and experienced professionals have also helped in technology
up gradation. Indian tyre technology has exhibited versatility in maintaining inflow of
technology through foreign collaborations and tailoring the same to Indian needs.

Automation

Tyre production traditionally, is multi-stage, with significant inter-stage differences in

the intensity of labour requirement, and a highly complex process involving the use of around
37 different materials including rubber, steel, fabrics and vulcanizing materials. The
production system in the Indian tyre industry has been traditionally very labour intensive. The
automation of manufacturing processes has increased gradually, which has slashed the size of
the workforce to a considerable degree and has effected a change in its composition. The
degree of automation has been greater in the area of radial technology, while cross ply
technology is still labour intensive. The firms have been resorting to automation in order to
tackle problems related to labour unionization and indiscipline in the sector. The rationale
provided by the firms for the increasing drive towards automation of the manufacturing
facilities has been that high quality and uniformity of the final product usually cannot be
guaranteed with a labour intensive process. (Iyer & Upadhyay 2008).

New Policy Initiatives

The tyre industry in India has had to grapple with raw material price volatility, rupee
appreciation and cheap Chinese imports. In this connection, some of the recent initiatives by
the government to facilitate the growth of the sector include:

 No WTO  bound rates for Tyres and Tubes

 No restrictions on the import of all raw materials required for tyre manufacture except
carbon black, which has been placed in the restricted list
 Increasing thrust on development of road infrastructure

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Future prospects of the Indian Tyre industry

The Indian Tyre industry is expected to show a healthy growth rate of 9-10% over the
next five years, according to a study by Credit Analysis and Research limited While the truck
and bus tyres are set to register a compounded annual growth rate (CAGR) of 8%, the light
commercial vehicles (LCV) segment is expected to show a CAGR of about 14 %. However,
we have to also take account of the effect of the global recession on the sector in making
these assessments. The growth of the sector is closely linked to the expansion plans of the
automobile companies; the government’s thrust on development of road infrastructure and
the sourcing of auto parts by the global Original Equipment Manufacturers (OEMs). Some
significant hurdles towards attaining these projected growth rates could be raw material
related price volatility, rupee appreciation and the looming threat of cheap Chinese imports.
The Indian tyre companies need to make active efforts to explore newer markets as the
existing markets for bus-truck tyres, which account for about 45 % of the total export
volume, is nearing saturation. There is also an urgent need to increase the degree of
radialization in order to safeguard their share in the export market. Global tyre manufacturers
have been making constant efforts to innovate and offer a diverse range of products such as
tyres with pressure warning systems, run flat tyres, eco-friendly tyres and energy efficient
tyres. In this context, the Indian domestic companies have to pursue a growth strategy of
continuous innovation and increasing emphasis on product differentiation.

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1.2 COMPANY PROFILE

Apollo Tyres was incepted in 1975 with its first plant commissioned in Perambra,
Kerala. It is a high–performance company and the leading Indian tyre manufacturer.
Headquartered in Gurgaon in Mumbai, a corporate–hub in the National Capital Region of
India, Apollo is a young, ambitious and dynamic organization, 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.

Apollo 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 India.

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 Propriety Ltd. in
South Africa (since 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 V B in the Netherlands, thereby adding

Europe as its third crucial market. In 2010, Tyre major Apollo Tyres entered the Bangladesh
market by partnering with Rahimafrooz Distribution, manufacturer and distributor of
automotive and industrial batteries. In the year 2011, the company entered into a
supplementary Memorandum of Understanding (MoU) with the Tamil Nadu government for
increasing its investments in the state to Rs 2,100 crore as part of its greenfield project, on the
back of expected demand for the product.

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

11
Apollo eight manufacturing locations in India, Netherlands and Southern Africa. A ninth
facility is currently under construction in southern India. 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 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 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 community health needs.
For passenger car customers the focus is on cultivating safe driving habits. Across its
manufacturing locations, the key initiatives revolve around health and education programmes.

Products of the company

 Passenger Car Tyres

 Alloy Wheels
 Sports Utility Tyres
 Van Tyres
 Passenger Winter Tyres
 Heavy Commercial Tyres

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  Light Commercial Tyres
 Small Commercial Tyres
 Agriculture Radial Tyres
 Agriculture Cross ply Tyres
 Off–The–Road Tyres
 Speciality Vehicles Tyres

Awards / Recognition

 Awarded as the Best Brand 2009 by Auto India

 Awarded as a Best Brand 2008 by Auto India
 Automotive Product of the year Award for Acelere Sportz at NDTV Car & Bike
Awards
 Apollo Safe Drive campaign won the IRTE Road Safety Award
 National Award for Excellence in Water
 Management 2006 – Awarded by CII to Limda, Gujarat
 Kerala State Energy Conservation Award 2006 to Apollo Tyres, Perambra Plant
 First manufacturer in South Africa to be awarded the ISO 14001

Subsidiaries of the company

 Apollo Radial Tyres

 Apollo Automotive Tyres
 Apollo (Mauritius) Holdings
 Dunlop Tyres International Pty Ltd., South Africa

Future plan

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 Slam Championship by the year 2018.

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Apollo Tyres Ltd Share Holding

Category No. of Shares Percentage

Promoters 222,280,742 43.67

Foreign Institutions 173,998,723 34.18

General Public 29,147,479 5.73

Others 22,298,328 4.38

NBFC and Mutual Funds 22,099,578 4.34

Other Companies 14,523,516 2.85

Financial Institutions 10,417,232 2.05

Central Government 10,000,000 1.96

Foreign - NRI 2,281,672 0.45

Foreign Promoters 1,977,000 0.39

Foreign Industries 500 0.00

ABOUT APOLLO TYRES LTD

Apollo Tyres Ltd., incorporated in the year 1972, is a Large Cap company (having a
market cap of Rs 11397.06 Cr.) operating in Tyres sector.

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 Apollo Tyres Ltd. key Products/Revenue Segments include Automobile Tyres which
contributed Rs 9532.86 Cr to Sales Value (98.36% of Total Sales), Other Operating Revenue
which contributed Rs 101.65 Cr to Sales Value (1.04% of Total Sales), Others which
contributed Rs 56.42 Cr to Sales Value (0.58% of Total Sales), for the year ending 31-Mar-
2014.

For the quarter ended 30-Sep-2014, the company has reported a Standalone sales of
Rs. 2235.03 Cr., down -2.57% from last quarter Sales of Rs. 2294.06 Cr. and up 6.08% from
last year same quarter Sales of Rs. 2106.85 Cr. Company has reported net profit after tax of
Rs. 161.67 Cr. in latest quarter.

The company’s management includes Mr.Onkar S Kanwar, Mr.P H Kurian, Mr.P N

Wahal, Mr.Robert Steinmetz, Mr.Sunam Sarkar, Mr.Vikram S Mehta, Ms.Pallavi Shroff,
Mr.Anil Chopra, Mr.C Krishna Kumar, Mr.Davendra Mittal, Mr.Dheeraj Prasad Sinha,
Mr.Gaurav Kumar, Mr.Harish Bahadur, Mr.K P Sharma, Mr.K Prabhakar, Mr.P K Mohamed,
Mr.P N Wahal, Mr.Rajesh Dahiya, Mr.S Asoka Iyer, Mr.S Chockalingam, Mr.Satish Sharma,
Mr.Sunam Sarkar, Mr.T R Gopalakrishnan, Mr.Tapan Mitra, Mr.U S Oberoi, Dr.S Narayan,
Mr.A K Purwar, Mr.Akshay Chudasama, Mr.K Jacob Thomas, Mr.Neeraj Kanwar,
Mr.Nimesh N Kampani.

It is engaged in manufacturing and marketing of tyres. It also has three manufacturing

units in South Africa and one in Zimbabwe.

Apollo manufactures wide range of tyres such as truck, bus, light truck, radial and
cross-ply, passenger car radial, farm radial and cross-ply, off-the-road, earthmover &
industrial tyres.

In the tyres segment it has launch brand like Aspire, Regal, Dura Tyre, XTRAX and
Rancer,among others.

It has a network of more than 4,200 dealers, with 19 state offices

Milestones

 Apollo Tyres was first to launch exclusive branded outlets -- Apollo Tyre World -- for
truck tyres.

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  It became first Indian tyre company to obtain ISO Certification for all its operations.

 Apollo was first introduce radial tyres for the farm category.

 It became first tyre company to cross revenue of over $1 billion.

 It became first tyre company to start a customer loyalty programme.

 Apollo Tyres won a gold medal at Tyre Expo Asia 2007.

With acquisition Dunlop Tyres International (Pty) in South Africa, Apollo Tyres has
gained extended presence in commercial vehicle tyres. It has now set a foot in European
market and plans to penetrate deeper.

In order to encourage tennis in India, Apollo Tyres has launched “Mission 2018”. It
aims to create Indian Grand Slam Champions by 2018. It will select potential talent from
fours cities of Bangalore, Mumbai, Kolkata and New Delhi through tennis selection camps.
These sportspersons will be provided all facilities required for training for Grand Slam
championship.

Business Summary  

Apollo Tyres Ltd. manufactures and sells automotive tires, tubes, and flaps in India,
South Africa, and Europe. Its product portfolio includes passenger cars, sports utility vehicle,
multi utility vehicle, light truck, truck bus, agriculture, industrial, specialty, bicycle, and off
highway tires, retreading material and tires and alloy wheels. The company offers its products
under the Apollo, Kaizen, Dunlop, Maloya, Regal, and Vredestein brands. It also exports its
products to approximately 100 countries internationally. Apollo Tyres Ltd. was founded in
1972 and is headquartered Gurgaon, India.

Date of Establishment 28-09 1972

Revenue 1616.1 ( USD in Millions )
Market Cap 113970.646003 ( Rs. in Millions )
Corporate Address 6th Floor, Cherupushpam Building,Shanmugham
Road , Kochi-682031, Kerala
www.apollotyres.com
Management Details Chairperson - Onkar S. Kanwar

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 MD - Onkar S. Kanwar

Directors – A.K.Purwar, Akshay Chudasama, Alkesh

Kumar Sharma, Arun Kumar Purwar, K.Jacob Thomas,
M.R.B Punja, Michael J.Hankinson, Neeraj Kanwar,
Nimesh N.Kampani, Onkar S.Kanwar, P.H.Kurian, P.N
Wahal, P.Prabakaran, Pallavi Shroff, P.H.Kurian, Raaja
Kanwar, Robert Steinmetz, S.Narayan, Shardul
S.Shroff, Sunam Sarkar, T.Balakrishnan, U.S.Oberoi,
V.P.Joy, Vikram S.Mehta, V.P.Joy
Business Operation Tyres & Allied
Background Apollo Tyres was incepted in 1975 with its first plant
commissioned in Perambra, Kerala. It is engaged in
manufacturing and marketing of tyres. It also has three
manufacturing unit sin South Africa and one in
Zimbabwe.
Apollo manufactures
Financials Total Income - Rs. 88151.36 Million ( year ending
Mar 2014)
Net Profit - Rs. 4426.19 Million ( year ending
Mar 2014)
Company Secretary P N Wahal
Bankers Bank of India , Bank of Nova Scotia, City Bank,
Corporation Bank, HDFC Bank, ING Vysya Bank
Auditors Deloittee Haskins & Sells, Deloittee Haskins & Sells,
Deloittee Haskins & Sells, Deloittee Haskins & Sells,
Deloittee Haskins & Sells, Deloittee Haskins & Sells,
Fraser & Ross, Fraser & Ross, Fraser & Ross, Fraser &
Ross, Fraser & Ross, Fraser & Ross, Fraser & Ross,
Fraser & Ross, Deloitte Hawkins & Sells

Full Description

Apollo Tyres Ltd is an India-based company engaged in manufacturing automobile

tires, tubes and tire re-treading compound. The Company’s manufacturing plants are located
in Kerala, Vadodra and Chennai. The Company manufactures tires for passenger vehicles, off

17
highway tire and commercial vehicles. The Company manufactures tires under Apollo and
Vredestein brands. The Company has two overseas subsidiary companies: Apollo Tyres
South Africa (Pty) Ltd. located in South Africa and Apollo Vredestein B.V. located in
Netherlands. The Company has two tire manufacturing plants in South Africa and its
products are sold in Africa and Europe under the brand name of Dunlop. It has one
manufacturing plant in Netherlands and its products are sold primarily in Europe under the
brand name of Vredestein. In December 2013, Sumitomo Rubber Industries Ltd completed
the acquisition of Apollo Tyres South Africa from Apollo Tyres.

Register Office

Address: 6th Floor, Cherupushpam Building 6th Floor, Cherupushpam Building 0,

Tel: +91 484 2381808, 2372767

Website: www.apollotyres.com

1.3 STATEMENT OF THE PROBLEM

The problem study consists of Apollo tyres is one of the major resource for avoid
lorry tyre damage problem in our country then the re function tyre is the major resources of
the lifelong and save the lorry accident. Most of the automobile industry is becoming loads
18
for heavy and oversize of the transport, but all types of automobile vehicles like that the
lifelong spares and service.

The problem analysis how the automobile industries avoid the major problem with
utilising the Apollo tyres utilize the resource.

1.4 OBJECTIVES OF THE STUDY

1. To find out the brand name is the first impression that customer gets.

19
 2. To help in a great way to build a strong, positive market potential to the
customers.
3. To objectives of brand image is the perception of brand among present
customers, potential customers and in market.
4. To know about very important for companies to acquire a high brand image of
tyre product.
5. To suggest with TLS tyres and how improve the automobile industry.

1.5 SCOPE OF THE STUDY

 The scope of the study concerned with TLS tyre Customers of Namakkal.

20
  It is aimed to analyze the market potential of TLS tyres.
 It also aims to check the quality and awareness tyre product.
 The choice of brand name is an inherent part of marketing strategy designed to result
in a successful new product launch is well recognized.
 The study analysis in Namakkal automobile industry and tyre dealers etc.

1.6 LIMITATIONS OF THE STUDY

 The survey was restricted to Namakkal District.

21
 Inadequate time to follow the customer response.
 Lack of experience in handling surveys.
 Most of the respondents were having inadequate time for filling in the questionnaire.

CHAPTER –II
REVIEW OF LITERATURE

22
Antonio S Lauglaug (1987) Strategically managing technology faces one major problem:
technology planners and managers who mistake ‘R & D management’ for ‘market potential.
In globally competitive markets, survival and growth of tyre companies will increasingly
depend upon the ability to manage technological resources strategically. This article proposes
a process model which views the strategic management of technology as ‘techno-business
management’, where technology and business strategy, planning and implementation can be
facilitated by the use of portfolio frameworks and technology forecasting techniques in
analysing and addressing the key strategic management areas of techno-business strategy
development and strategy implementation.

Geraldo Ferrer (1997) The world market for tires is described to identify the current
material flow from raw materials to tires and the used tire disposal problem. Then, I describe
the value-adding operations in the tire production process and in the tire retreading process.
Once retreading is identified as the only recovery alternative that maximizes tire utilization, I
explain why heat generation is the only recovery alternative, when retreading is not
technically feasible. The economic values of heat generation in electric plants and in cement
kilns are discussed. The paper culminates with the case of retreading, the tire
remanufacturing process and the recommendation of a simple decision rule for selecting the
number of times a tire should be retreaded to maximize its utilization.

Norbert Malanowski (2007) This paper discusses how to bridge the gap between foresight
research oriented to the long-term, and traditional market research oriented to the medium to
short term, when applied to an early stage of a technology's life cycle. It proposes using an
integrating approach, i.e. a combination of methods and both foresight and traditional market
research. A mix of complementary methods for the acquisition and analysis of data is
presented in a case study. This helps to overcome the deficits of some qualitative foresight
methods and quantitative methods often used in traditional market research and allows us to
examine research results from the different methods applied both on their own and as a
group. In the absence of a single fully-fledged and accepted economic approach, this paper
argues that combined market research and foresight modules are the best possible approach
for analyzing the economic potential of emerging technologies like nanotechnology.
Bruno Milanez (2009) Environmental policies based on the extended producer responsibility
(EPR) concept have been adopted in various countries, and the EU, as a strategy to promote
product redesign and to reduce the amount and toxicity of solid waste. This paper describes

23
the development and implementation of an EPR-inspired policy in Brazil to deal with tyre
waste, and analyses its constraints. It is argued that the experience was an attempt to use an
institutional solution to overcome structural problems. The findings provide a basis for
recommending that governments pay attention to the potential constraints upon the effective
implementation of foreign policy solutions before these are imported.

Guido Buenstorf (2010) We trace the geographic and intellectual heritage of the early
entrants into the US tire industry in Ohio, the industry’s historical center. We test a model in
which the supply of capable entrants, localized knowledge, and production externalities
influence where entrants originated and located. Entry clustered around existing tire
producers and in more populated regions, which we attribute mainly to the supply of capable
entrants. Production externalities influenced the profitability of operating in a region, but
their effect was limited by the localized knowledge of entrants.

Maciej Sienkiewicz et al (2012) The dynamic increase in the manufacture of rubber

products, particularly those used in the automobile industry, is responsible for a vast amount
of wastes, mostly in the form of used tyres, of which more than 17 million tonnes are
produced globally each year. The widely differing chemical compositions and the cross-
linked structures of rubber in tyres are the prime reason why they are highly resistant to
biodegradation, photochemical decomposition, chemical reagents and high temperatures. The
increasing numbers of used tyres therefore constitute a serious threat to the natural
environment. The progress made in recent years in the management of polymer wastes has
meant that used tyres are starting to be perceived as a potential source of valuable raw
materials.

Davide Lo Presti (2013) Nowadays, only a small percentage of waste tyres are being land-
filled. The Recycled Tyre Rubber is being used in new tyres, in tyre-derived fuel, in civil
engineering applications and products, in moulded rubber products, in agricultural uses,
recreational and sports applications and in rubber modified asphalt applications. The benefits
of using rubber modified asphalts are being more widely experienced and recognized, and the
incorporation of tyres into asphalt is likely to increase. The technology with much different
evidence of success demonstrated by roads built in the last 40 years is the rubberised asphalt
mixture obtained through the so-called “wet process” which involves the utilisation of the
Recycled Tyre Rubber Modified Bitumens (RTR-MBs). Since 1960s, asphalt mixtures
produced with RTR-MBs have been used in different parts of the world as solutions for

24
different quality problems and, despite some downsides, in the majority of the cases they
have demonstrated to enhance performance of road’s pavement.

Juan Daniel Martínez (2013) This review deals with the state-of-the-art of waste tyre
pyrolysis for the first time in literature. Pyrolysis has been addressed as an attractive
thermochemical process to tackle the waste tyre disposal problem while allowing energy
recovery. Pyrolysis enables the separation of carbon black from tyres and the volatile matter
released (condensable and non-condensable compounds) has the market potential of
renewable energy recovery given the significant proportion of natural rubber present in the
tyre. Given this waste-to-energy pathway, a comprehensive review has been carried out in
order to show the effects of the main process conditions (heating rate, temperature, pressure,
carrier gas flow rate and type, volatiles residence time and pyrolysis time) on the
physicochemical properties and distributions of the resulting products (gas, liquid and solid
fractions). It has also been reviewed the influence of the size and composition of the
feedstock. All reported results have been framed regarding the type of reactor as well as the
experimental conditions used to avoid contradictions among the large number of publications
on the subject. It is shown that the occurrence of secondary reactions is very sensitive to the
interaction of the aforementioned variables.

N. Antoniou (2013) This paper presents the essential features of an efficient and
environmentally attractive pyrolysis for used tyres valorisation with energy and material
recovery. The problem of tyres management strongly affects not only the environmental
protection but even the resources maintenance, since problems related to the depletion of
resources, energy demand and management for market potential, are strictly connected and
required an integrated approach. A general guideline for EU member states, aims to reach a
zero post-consumer amount of tyre disposal in landfills before the end of 21st century, to
optimize and expand the already well studied ways of their treatment and find new ones, in
order to accomplish a balance between economy and environmental protection. In this
context, thermal treatment of end of life tyres could play a relevant role for the recovery of
resources (matter and/or energy).

Y. Hirata et al (2014) The most important performance requirements of a tyre are safety and
comfort of mobility, along with reduced environmental impact. these requirements are best

25
met by deploying a combination of technologies on both a microscopic and a macroscopic
level in design and manufacturing. this chapter discusses examples of such technologies. it
also discusses natural rubber (NR), the most important raw material used in tyres, including
its quality control and the challenges facing its use in the future.

Vincenzo Torretta et al (2014) The treatment and disposal of tyres from vehicles has long
been of considerable environmental importance. The main problem lies in the mixed
composition of the tyres. Studies have been undertaken to modify the structure of the tyres,
especially with reference to the percentage of granulated rubber incorporated, in order to
improve their performance, and also to reduce their environmental impact during normal
functioning (noise, particulates, etc.) and facilitate recycling and final disposal. The aim of
the present study is to review and compare how used tyres are treated and disposed of in two
different EU countries. The first is Italy, which has been part of the European Union since its
inception, and has important industrial traditions.

S. Ramarad et al (2014) This review addresses the progress in waste tire recycling with a
particular attention to incorporation of waste tire rubber (WTR) into polymeric matrices.
Methods of waste tire downsizing, importance of WTR characterization and current practice
of WTR modification has been emphasized. Detailed discussion on influence of WTR size,
loading, modification, compatibilization and crosslinking on the rheological, mechanical and
thermal properties of rubber, thermoplastic and thermoplastic elastomer blends utilizing
WTR has been reported. By far, thermoplastic elastomer blends; though still in its infancy;
has shown the most promising properties balance which is capable of commercialization.
Rubber/WTR blends also show ease of processing and acceptable properties.
Thermoplastic/WTR blends suffers in term of toughness and elongation at break.

CHAPTER –III

26
 RESEARCH METHODOLOGY

RESEARCH

Research methodology is the way of systematically solving the research problem. It

may be understood as a science of studying how research is done scientifically and
systematically.

3.1 RESEARCH DESIGN

A research design is an arrangement of conditions for collection and analysis of data

in a manner that aims to combine with relevance to the research purpose with economy in
procedure.

3.2 SAMPLE DESIGN

A sample is a subset from the total population. A sample is a subset from the total
population. It refers to the techniques or the procedure to the research would adopt in
selecting items for the sample (i.e) the size of the sample

SAMPLING METHOD

Here the researcher used the convenience sampling method.

The sampling technique used in this study is “convenience sampling” when the population
element for inclusion in the sample is based on the ease of access. It can be called as
convenience.

Convenience sampling

This method is also called as chunk method a chunk refers to the fraction of the
population to be investigated. This chunk is not selected by probability but select by
judgment or convenience.

SAMPLING SIZE

27
  A part of the population selected for the study is called sample, here the researcher
took 150 as a sample size.

3.3 DATA COLLECTION

Data is collected from the customer buying the product of TLS tyre product. The
researcher had prepared a well-structured questionnaire to study the customer satisfaction.

PRIMARY DATA

The primary data is collected directly from the customers i.e. data collected with the
help of questionnaire.

SECONDARY DATA

The secondary data means already available data. Here, the data were collected from
company records, website, annual reports and Journals etc…

The researcher also collected information through primary data as well as secondary
data. The research instrument used for the study is interview schedule which contain both
closed and open ended questions.

3.4 STATISTICAL TOOLS

The data is collected from the customer during survey and analyzed using various
tools.

The tools applied for study is,

 Simple percentage method

 Chi-square method
 Ranking by weighted average method

SIMPLE PERCENTAGE ANALYSIS

28
 Percentage refers to a special kind of ratio comparison between two or more data to
describe relationship between the data. Percentage can also be used to compare the relative
terms, the distribution of two or more series of data.

No. of respondents
Simple percentage = X 100
Total No. of respondents

CHI-SQUARE TEST
The research used chi-square test to find the relationship between the independent
variables.
∑ (Oi – Ei)2
Chi-square =
Ei

Oi = Observed frequency
Ei = Expected value
In general the expected frequency for any can be calculated from the following
equations

RT X CT
E =
N
E = Expected frequency
CT = Column total
RT = Row total
N = Total number of observations

The calculated value of chi-square is compared with the table value of chi-square
given degree of freedom of a certain specified level of satisfaction. If at the stated level the
calculated value of X2 is more than the table value of X 2 the difference between theory and
observation is considered to be significant otherwise it is insignificant.

CHAPTER –IV

29
 DATA ANALYSIS AND INTERPRETASTION

TABLE NO 4.1

OCCUPATION OF THE RESPONDENTS

NO.OF PERCENTAGE OF THE

S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Student 34 23%
2 Professional 54 36%
3 Employees 41 27%
4 Others 21 14%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that 23% of the respondent occupations are student, 36% of
the respondent occupations are professional, 27% of the respondent occupations are
employee and 14% of the respondent occupations are others.

The majority 36% of the respondent occupations are professional.

CHART NO 4.1

OCCUPATION OF THE RESPONDENTS

30
 40% 36%

35%

30% 27%
23%
25%
Percentage

20%
14%
15%

10%

5%

0%
Student Professional Employees Others
Occupation

TABLE NO 4.2

INCOME GROUP OF THE RESPONDENTS

31
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Below Rs 20,000 32 21%
2 Rs 20,000 – 30,000 39 26%
3 Rs 30,000 – 40,000 44 30%
4 Above Rs 40,000 35 23%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that 21% of the respondents are earn below Rs 20,000, 26% of
the respondents are earn Rs 20,000 – 30,000, 30% of the respondents are earn Rs 30,000 –
40,000,23% of the respondents are earn above Rs 40,000.

Thus the majority 26% of the respondents are earn Rs 20,000 – 30,000.

CHART NO 4.2

INCOME GROUP OF THE RESPONDENTS

32
 30%

25%

20%
Percentage

30%
15% 26%
23%
21%
10%

5%

0%
Below Rs 20,000 Rs 20,000 – 30,000 Rs 30,000 – 40,000 Above Rs 40,000
Income of the respondents

TABLE NO 4.3

INFLUENCE TO PURCHASE APOLLO TYRE [RANKING METHOD]

33
S. No Influence to 1 2 3 4 5 6 Total Weight Rank
purchase

1. Friends 9 3 7 4 2 0 62 2.95 4

2. Brand image 4 2 11 0 6 2 83 3.95 1

3. Advertisement 8 9 3 3 2 0 57 2.71 6

4. Relatives 0 10 6 8 0 1 76 3.61 2

5. Self decision 11 2 5 7 0 0 58 2.76 5

6 Others 6 9 3 2 5 0 66 3.14 3

Weighted average method:

Formula:-

[(Rank1×1)+(Ranks2×2 )+(Ranks3×3)…N ]
Average score: = Total weight

Weighted Average =

[ ( 9*1)+( 3*2 )+( 7*3)+( 4*4 )+( 5*2 )]

21

= 62/21 = 2.95

Conclusion:-

In the above table, influence to buy Apollo tyre. Others than relatives, followed by
others, friends, self decision and advertisement. So most of the respondents are buy brand
image.

CHART NO 4.3

INFLUENCE TO PURCHASE APOLLO TYRE

34
 12 11 11
10
10 9 9 9
8 8
8 7 7
6 6 6
Percentage

6 5 5
4 4
4 3 33 3
2 2 2 2 2 2
2 1
0 0 0 0 0 00 0
0
Friends Brand image Advertisement Relatives Self decision Others
Factors

CHART NO 4.3 (A)

INFLUENCE TO PURCHASE APOLLO TYRE

4
Rank

6
3
5
4
2
3
2
1
1

0
Friends Brand image Advertisement Relatives Self decision Others

Factors

TABLE NO 4.4

USING THIS APOLLO TYRE

35
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 5-7 years 29 19%
2 8-9 years 46 31%
3 10-19 years 44 29%
4 More 20 years 31 21%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that using this Apollo tyre, 19% of the respondents are using
5-7 years, 31% of the respondents are using 8-9 years, 29% of the respondents are using 10-
19 years and 21% of the respondents are using more 20 years.

The majority 31% of the respondents are using 8-9 years.

CHART NO 4.4

USING THIS APOLLO TYRE

36
 35%

30%

25%
Percentage

20%
31%
29%
15%
21%
19%
10%

5%

0%
5-7 years 8-9 years 10-19 years More 20 years
Using these apollo tyre

TABLE NO 4.5

PURCHASING APOLLO TYRE

37
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Self 14 9
2 Commercial 48 32
3 Lorry 69 46
4 Two wheeler 10 7
5 All the above 9 6
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that purchasing Apollo tyre, 9% of the respondents are
purchase self, 32% of the respondents are purchase commercial, 46% of the respondents are
purchase lorry, 7% of the respondents are purchase two wheeler and 6% of the respondents
are purchase all the above.

Thus the majority 46% of the respondents are purchase Apollo tyre lorry.

CHART NO 4.5

PURCHASING APOLLO TYRE

38
 50%
45%
40%
35%
30%
Percentage

25% 46%

20%
32%
15%
10%
9% 7%
5% 6%

0%
Self Commercial Lorry Two wheeler All the above
Purchasing apollo tyre

TABLE NO 4.6

SHOWROOM TREAT AS CUSTOMERS

S.NO PARTICULAR NO.OF PERCENTAGE OF THE

39
 RESPONDENTS RESPONDENTS (%)
1 Very friendly 28 19%
2 Friendly 62 41%
3 Non friendly 14 9%
4 Don’t know 46 31%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that show room treat as customers, 19% of the respondents are
said very friendly, 41% of the respondents are said friendly, 9% of the respondents are said
non friendly and 31% of the respondents are said don’t know.

Thus the majority 41% of the respondents are said show room treat as friendly.

CHART NO 4.6

SHOWROOM TREAT AS CUSTOMERS

40
 45%

40%
35%
30%
Percentage

25%
41%
20%
31%
15%
19%
10%
9%
5%

0%
Very friendly Friendly Non friendly Don’t know
Showroom treat as customers

TABLE NO 4.7

LEADING BRAND IN THE MARKET

41
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Apollo 63 42%
2 TVS 48 32%
3 JK 33 22%
4 MRF 6 4%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that leading brand in the market, 42% of the respondents are
said leading brand are Apollo, 32% of the respondents are said leading brand are TVS, 22%
of the respondents are said leading brand are JK and 4% of the respondents are said leading
brand are MRF.

Thus the majority 42% of the respondents are said leading brand are Apollo.

CHART NO 4.7

LEADING BRAND IN THE MARKET

42
 45% 42%

40%
35% 32%
30%
25%
Percenatage

20% 22%

15%
10%
5%
0% 4%
Apollo
TVS
JK
MRF
Leading brand in the market

TABLE NO 4.8

SATISFIED WITH THE ADVERTISEMENT

43
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Yes 106 71%
2 No 44 29%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that satisfied with the advertisement, 71% of the respondents
are said satisfied with the advertisement and 29% of the respondents are said not satisfied
with the advertisement.

Thus the majority 71% of the respondents are said satisfied with the advertisement.

CHART NO 4.8

SATISFIED WITH THE ADVERTISEMENT

44
 29%

Yes
No

71%

TABLE NO 4.9

MODE OF PAYMENT

S.NO PARTICULAR NO.OF PERCENTAGE OF THE

45
 RESPONDENTS RESPONDENTS (%)
1 Cash 63 42
2 Credit 26 17
3 Both 61 41
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that mode of payment, 42% of the respondents are said mode
of payment are cash, 17% of the respondents mode of payment are credit, 41% of the
respondents are said mode of payment are both.

Thus the majority 42% of the respondents are said mode of payment are cash.

CHART NO 4.9

MODE OF PAYMENT

46
 42 41
45
40
35
30
Percentage

25
17
20
15
10
5
0
Cash Credit Both
Mode of payment

TABLE NO 4.10

FACE ANY PROBLEM USING APOLLO TYRE

S.NO PARTICULAR NO.OF PERCENTAGE OF THE

47
 RESPONDENTS RESPONDENTS (%)
1 Yes 65 43%
2 No 86 57%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that problem using Apollo tyre, 43% of the respondents are
said problem in using Apollo tyre, 57% of the respondents are said no problem in using
Apollo tyre.

Thus the majority 43% of the respondents are said problem in using Apollo tyre.

CHART NO 4.10

FACE ANY PROBLEM USING APOLLO TYRE

48
 43%
Yes
No
57%

TABLE NO 4.11

LEVEL OF OPENION FOR APOLLO TYRE

S. NO FACTORS Excellent Good Moderate Poor

Res Per Res Per Res Per Res Per

49
 1 Availability 67 45 44 29 27 18 12 8

2 Life long 54 36 76 51 17 11 3 2

3 Price 33 22 102 68 15 10 - -

4 Rebuild service - - 81 54 27 18 42 28

5 Quality 15 10 103 69 21 14 11 7

Source: Primary data

INTERPRETATION

The above table explain the level of opinion for Apollo tyre. There are 45
members are said excellent in availability of product. There are 51 members are said good in
lifelong product.68 members are said price are good.54 members are said rebuild service are
good and 69 members are said Apollo tyre quality good.

Thus the majority 69 members are said Apollo tyre quality good.

CHART NO 4.11

LEVEL OF OPENION FOR APOLLO TYRE

50
 68% 69%
70%

60% 54%
51%
50% 45%

40% 36%
29% 28%
Percentage

Excellent
30% Good
22%
18% 18% Moderate
20% 14% Poor
11% 10% 10%
8% 7%
10%
2%
0% 0%
0%
Availability Life long Price Rebuild Quality
service
Level of opinion for apollo tyre

TABLE NO 4.12

OPINION ABOUT SALES PROMOTION ACTIVITIES

51
 NO.OF
PERCENTAGE OF THE
S.NO PARTICULAR RESPONDENT
RESPONDENTS (%)
S
1 Excellent 35 23%
2 Very good 31 21%
3 Good 65 43%
4 Poor 19 13%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that sales promotion activities, 23% of the respondents are said
excellent, 21% of the respondents are said very well, 43% of the respondents are said good
and 13% of the respondents are said poor.

Thus the majority 43% of the respondents are said well.

CHART NO 4.12

OPINION ABOUT SALES PROMOTION ACTIVITIES

52
 45%
40%

35%

30%
Percentage

25% 43%
20%
15% 23% 21%
10% 13%
5%

0%
Excellent Very good Good Poor
Opinion about sales promotion activities

TABLE NO 4.13

SATISFACTION LEVEL OF APOLLO TYRE QUALITY

53
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Highly satisfied 62 41%
2 Satisfied 67 45%
3 Dissatisfied 15 10%
4 Highly dissatisfied 6 4%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that satisfaction level of quality, 41% of the respondents are
said quality are highly satisfied, 45% of the respondents are said quality are satisfied, 10% of
the respondents are said quality are dissatisfied and 4% of the respondents are said quality are
highly dissatisfied.

Thus the majority 45% of the respondents are said quality are satisfied.

CHART NO 4.13

SATISFACTION LEVEL OF APOLLO TYRE QUALITY

54
 50%
45%
40%

35%
30%
Percentage

25%
45%
20% 41%

15%
10%
5% 10%
4%
0%
Highly satisfied Satisfied Dissatisfied Highly dissatisfied
Satisfaction level of quality

TABLE NO 4.14

SATISFACTION LEVEL OF APOLLO TYRE MARKET GROWTH

55
 NO.OF PERCENTAGE OF THE
S.NO PARTICULAR
RESPONDENTS RESPONDENTS (%)
1 Highly satisfied 71 47%
2 Satisfied 76 51%
3 Dissatisfied 3 2%
4 Highly dissatisfied 0 0%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that satisfaction level of Apollo tyre market growth, 47% of
the respondents are said market growth are highly satisfied, 51% of the respondents are said
market growth are satisfied, 2% of the respondents are said market growth are dissatisfied
and none of the respondents are said market growth are highly dissatisfied.

Thus the majority 47% of the respondents are said market growth are satisfied.

CHART NO 4.14

SATISFACTION LEVEL OF APOLLO TYRE MARKET GROWTH

56
 60%
47% 51%
50%

40%

30%
Percentage

20%

10%
2%
0%
Highly satisfied 0%
Satisfied
Dissatisfied
Highly dissatisfied
Level of apollo tyre market growth

TABLE NO 4.15

APOLLO TYRE SATISFIED YOUR PURPOSE

S.NO PARTICULAR NO.OF PERCENTAGE OF THE

57
 RESPONDENTS RESPONDENTS (%)
1 Highly satisfied 65 43%
2 Satisfied 73 49%
3 Dissatisfied 8 5%
4 Highly dissatisfied 4 3%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that Apollo tyre satisfied your purpose, 43% of the
respondents are said Apollo tyre purpose are highly satisfied, 49% of the respondents are said
Apollo tyre purpose are satisfied, 5% of the respondents are said Apollo tyre purpose are
dissatisfied and 3% of the respondents are said Apollo tyre purpose are highly dissatisfied.

Thus the majority 49% of the respondents are said Apollo tyre purpose are satisfied.

TABLE NO 4.15

APOLLO TYRE SATISFIED YOUR PURPOSE

58
 50%
49%
45%43%
40%
35%
30%
25%
Percentage

20%
15%
10%
5%
0% 5%
Highly satisfied
Satisfied
3%
Dissatisfied
Highly dissatisfied
Apollo tyre satisfied your purpose

TABLE NO 4.16

INDUSTRIES LIKE THAT MARKET POTENTIAL TECHNOLOGY IN APOLLO

TYRE PRODUCT OF THE RESPONDENTS

59
 S.NO MARKET POTENTIAL NO. OF PERCENTAGE OF THE

TECHNOLOGY RESPONDENTS RESPONDENTS (%)

1 Excellent 48 32%
2 Good 88 59%
3 Moderate 8 5%
4 Poor 6 4%
Total 150 100%
Source: Primary Data

INTERPRETATION

The above table shows that market potential in Apollo tyre product, 32% of the
respondents are says excellent for market potential, 59% of the respondents are says that
good market potential, 5% of the respondents are market potential is moderate and 4% of the
respondents are says poor.

It is found that the majority 59% of the respondents are says that industries like that the
Excellent market potential technology in Apollo tyre product.

CHART NO - 4.16

INDUSTRIES LIKE THAT MARKET POTENTIAL TECHNOLOGY IN APOLLO

TYRE PRODUCT OF THE RESPONDENTS

60
 60%

50%

40%
PERCENTAGE

59%
30%

20% 32%

10%
5% 4%
0%
Excellent Good Moderate Poor
MARKET POTENTIAL TECHNOLOGY

TABLE NO – 4.17

CONSUMER EXPECTATION FROM TLS TYRE

S.NO CONSUMER NO. OF PERCENTAGE OF THE

EXPECTATION RESPONDENTS RESPONDENTS (%)

1 Good quality 63 42%

61
 2 Comfort 59 39%
3 Guarantee/ warrantee 18 12%
4 Others 10 7%
Total 150 100%
Source: Primary data

INTERPRETATION
The above table shows customer expectation from TLS tyre, 42% of the respondents
are expect the customer for good quality, 39% of the respondents are customer expect for
comfort, 12% of the respondents are expect for guarantee / warrantee and remaining 7% of
the respondents are expect for others.

Thus the majority 42% of the respondents are expecting for good quality.

CHART NO – 4.17

CONSUMER EXPECTATION FROM TLS TYRE

62
 45
40
35
30
PERCENTAGE

25
42
39
20
15
10
12
5 7

0
Good quality Comfort Guarantee/ Others
warrantee
CONSUMER EXPECTATION

TABLE NO – 4.18

ADVANTAGES FOR USE APOLLO TYRE

S.NO USE APOLLO TYRE NO. OF PERCENTAGE OF THE

63
 RESPONDENTS RESPONDENTS (%)
1 Effective mileage 32 21%
2 Break condition level 39 26%
3 Reduce accident 48 32%
4 Over load 31 21%
Total 150 100%
Source: Primary data

INTERPRETATION
The above table shows advantages for use Apollo tyre, 21% of the respondents are
use effective mileage, 26% of the respondents are use break condition level, 32% of the
respondents are use reduce accident and 21% of the respondents are use over load.
Thus the majority 32% of the respondents are use reduce accident.

CHART NO – 4.18

ADVANTAGES FOR USE APOLLO TYRE

64
 35%
30%
32%
25% 26%
21%
20%
Percentage

15%
21%
10%
5%
0%
Effective mileage
Break condition level
Reduce accident
Over load
Advantages for use apollo tyre

TABLE NO – 4.19

MOSTLY BUY TLS TYRE

S.NO MOSTLY BUY NO. OF PERCENTAGE OF THE

65
 RESPONDENTS RESPONDENTS (%)
1 Two wheeler 63 42
2 Car industry 29 19
3 Lorry automobile 37 25
4 Bus transport 21 14
Total 150 100%
Source: Primary data

INTERPRETATION
The above table shows that mostly buy TLS tyre, 42% of the respondents are said
mostly buy two wheeler tyre, 19% of the respondents are said mostly buy car industry, 25%
of the respondents are said mostly buy lorry automobile and 14% of the respondents are said
mostly buy bus transport.
Thus the majority 42% of the respondents are said mostly buy two wheeler industries.

CHART NO – 4.19

MOSTLY BUY TLS TYRE

66
 42%
45%

40%

35%

30% 25%
Percentage

25% 19%
20% 14%
15%

10%

5%

0%
Two wheeler Car industry Lorry automobile Bus transport
Mostly buy TLS product

TABLE NO 4.20

RECOMMEND YOUR FRIENDS AND BUSINESSMAN

S.NO PARTICULAR NO.OF PERCENTAGE OF THE

67
 RESPONDENTS RESPONDENTS (%)
1 Yes 142 94%
2 No 8 6%
Total 150 100%
Source: Primary data

INTERPRETATION

The above table shows that 94% of the respondents are recommend friends and
businessman and 6% of the respondents are not recommending friends and businessman.

Thus the majority 94% of the respondents are recommend your friends and
businessman.

CHART NO 4.20

RECOMMEND YOUR FRIENDS AND BUSINESSMAN

68
 6%

Yes
No

94%

TESTING OF HYPOTHESIS

CHI-SQUARE

69
 The table shows analysis of the relationship between using Apollo tyre and showroom
tread as customers.

Using Apollo tyre/ 5-7 years 8-9 10-19 More 20 Total

show room treat years years years
as customers
Very friendly 5 9 8 6 28
Friendly 12 19 18 13 62
Non friendly 3 4 4 3 14
Don’t know 9 14 13 10 46
Total 29 46 44 31 150
(Source: Primary data)

NULL HYPOTHESIS

H0: There is no significance relationship between using Apollo tyre and showroom
tread as customers.

ALTERNATIVE HYPOTHESIS

H: There is a significance relationship between using Apollo tyre and showroom tread
as customers.

(O-E)2
Observed Expected
Particulars (O-E)2
Frequency Frequency
E
R1 C1 5 5.41 0.17 0.03
R1C2 9 8.58 0.18 0.02
R1C3 8 8.21 0.04 0.00
R1C4 6 5.78 0.05 0.00
R2C1 12 11.98 0.00 0.00
R2C2 19 19.01 0.00 0.00
R2C3 18 18.18 0.03 1.78
R2C4 13 12.81 0.04 0.00
R3C1 3 2.7 0.09 0.03
R3C2 4 4.29 0.08 0.02
R3C3 4 4.11 0.01 0.00
R3C4 3 2.89 0.01 0.00
R4C1 9 8.89 0.01 0.00
R4C2 14 14.10 0.00 0.00
R4C3 13 13.49 0.24 0.02
R4C4 10 9.50 0.25 0.03
Calculated value 1.93

70
Degree of Freedom : ( r – 1 ) (c – 1)
= (4– 1) ( 4 – 1)
= 3x3 = 9
Level of significance = 5%
Table value = 1.93
Calculated value = 16.919
RESULT:
Since the calculated value is less than the table value. So we accept the null
hypothesis. There is significance relationship between using Apollo tyre and showroom
treads as customers.

CHAPTER –V

SUMMERY OF FINDINGS SUGGESTION AND CONCLUSION

5.1 FINDINGS

 The majority 36% of the respondent occupations are professional.

 Thus the majority 26% of the respondents are earn Rs 20,000 – 30,000.

71
  Most of the respondents influence to buy brand image.
 The majority 31% of the respondents are using 8-9 years.
 Thus the majority 46% of the respondents are purchase Apollo tyre lorry.
 Thus the majority 41% of the respondents are said show room treat as friendly.
 Thus the majority 42% of the respondents are said leading brand are Apollo.
 Thus the majority 71% of the respondents are said satisfied with the advertisement.
 Thus the majority 42% of the respondents are said mode of payment are cash.
 Thus the majority 43% of the respondents are said problem in using Apollo tyre.
 Thus the majority 69 members are said Apollo tyre quality good.
 Thus the majority 43% of the respondents are said well.
 Thus the majority 45% of the respondents are said quality are satisfied.
 Thus the majority 47% of the respondents are said market growth are satisfied.
 Thus the majority 49% of the respondents are said Apollo tyre purpose are satisfied.
 It is found that the majority 59% of the respondents are says that industries like that
the Excellent market potential technology in Apollo tyre product.
 Thus the majority 42% of the respondents are expecting for good quality.
 Thus the majority 32% of the respondents are use reduce accident.
 Thus the majority 42% of the respondents are said mostly buy two wheeler industries.
 Thus the majority 94% of the respondents are recommend your friends and
businessman.

5.2 SUGGESTIONS

 Rebranding the organization has made it possible to open up new opportunities while
Apollo tyre on the strengths of the past.
 Because developing a strong brand depends so heavily on creating appropriate
perceptions, the internal and external communication exercises have been vital in
quickly building up the confidence of stakeholders.
 Apollo tyre in TLS vital role of brand image of compare with other product.

72
  Each and every tyre product is suggesting long-term marketable potential growth
together Apollo tyre.
 The finding are suggest most of the respondents using the product to improve
awareness of tyre life long, quality, warranty, market strategy and product style.

5.3 CONCLUSION

Your personal brand value can be managed just as you manage a brand of a product or
service. Brand value is all based on image or perception, an end-to-end experience, trust and
a promise of consistent value, and an emotional connection and relationship.

73
 TLS Brand really is about fact and emotion. It’s about what you deliver and the
emotional attributes associated with it. This TLS tyre is increases market potential of the
world becomes more automobile industries. The ability of your personal brand to evoke a
strong, positive feeling is a key element of your brand’s equity of all level of vehicles and
especially lorry industry.

Determine your brand’s emphasis or your promise. Determine the Apollo brand how
to generate excitement in getting your personal brand out there. Focus on forming lifelong
time relationships one brand image to market strategy to the business.

BIBLIOGRAPHY

REFERENCE BOOKS

 Donald R Cooper – Pamela S Schindler, “Business Research Method”,

Tata Mc Graw – Hill Publishing Company Ltd., 8th Edition, 2003.

74
  Kazmi S.H.H & Satish K Batra, “Advertising & Sales Promotion”, Excel Books,
Second Edition, 2006.

 Kothari C.R., “Research Methodology”, New Age International Prakashan Publishers,

Second Edition, 2004.

 Memoria. C.B. and Satish Memoria (1985), “Marketing Management”, Ketab Mahal,
New Delhi.

 Philip Kotler (2000), “Marketing Management”, Prentice Hall of India, New Delhi.

WEBSITE

www.ssrn.com

www.apollotyre.in

www.wikipedia .in

www.indian tyre industry.in

A STUDY ON MARKET POTENTIAL OF MICHELIN TLS APOLLO TYRES WITH

SPECIAL REFERENCE TO NAMAKKAL

1. Name
2. Gender
3. Address
4. Occupation

75
 a) Students [ ] b) Professional [ ]
c) Employees [ ] d) Others [ ]
5. Income group
a) Below Rs.20,000 [ ] b) Rs.20,000 to 30,000 [ ]
c) Rs.30,000 to 40,000 [ ] d) Above 40,000 [ ]
6. How long have you been using these Apollo tyres?
a) 5-7 years [ ] b) 8-9 years [ ]
c) 10-19 years [ ] d) More 20 years [ ]
7. For what purpose you are purchasing the Apollo tyres?
a) Self [ ] b) Commercial [ ]
c) Lorry [ ] d) Two Wheeler [ ]
e) All the above [ ]
8. How does the showroom treat as to the customers?
a) Very friendly [ ] b) Friendly [ ]
c) Non-friendly [ ] d) Don’t know [ ]
9. Which brand is leading in the market?
a) Apollo [ ] b) TVS [ ]
c) JK [ ] d) MRF [ ]
10. Which factor influence you to purchase the Apollo tyres?

S. No Particular Rank
1 Friends
2 Brand image
3 Advertisement
4 Relatives
5 Self decision
6 Others

11. Are you satisfied with the advertisement of the company?

a) Yes [ ] b) No [ ]
12. Mention the mode of payment for purchasing Apollo tyres?
a) Cash [ ] b) Credit [ ]
c) Both [ ]
13. Whether you face any problem while using the Apollo tyres?
a) Yes [ ] b) No [ ]

If yes state the problem ______________________________________

76
14. State the level of opinion for Apollo tyre to buy the reason for following factors?

Opinion / Excellent Good Moderate Poor

Factors
Availability
Life long
Price
Rebuild
service
Quality
15. What is your opinion about the sales promotion activities of Apollo tyres
a) Excellent [ ] b) Very good [ ]
c) Good [ ] d) Poor [ ]
16. What is your satisfaction level of the Apollo tyres to the quality
a) Highly satisfied [ ] b) Satisfied [ ]
c) Dissatisfied [ ] d) Highly dissatisfied [ ]
17. What is your satisfaction level of the Apollo tyres market growth
a) Highly satisfied [ ] b) Satisfied [ ]
c) Dissatisfied [ ] d) Highly dissatisfied [ ]
18. What extent the Apollo tyres has satisfied your purpose
a) Highly satisfied [ ] b) Satisfied [ ]
c) Dissatisfied [ ] d) Highly dissatisfied [ ]
19. How the industries like that market potential technology in Apollo tyre product?
a) Excellent [ ] b) Good [ ]
c) Moderate [ ] d) Poor [ ]

20. What is consumer’s expectation from TLS tyre?

a) Good quality [ ] b) Comfort [ ]
c) Guarantee/warrantee [ ] d) Others [ ]
21. How does the dealer opinion for rebuild service facility from TLS tyre
a) Excellent [ ] b) Good [ ]
c) Moderate [ ] d) Poor [ ]
22. What are all the advantage for use this Apollo tyre
a) Effective mileage [ ] b) Break condition level [ ]
c) Reduce accident [ ] d) Over load [ ]
23. Which automobile industries mostly to buy TLS tyre

77
 a) Two wheeler [ ] b) Car industry [ ]
c) Lorry automobile [ ] d) Bus transport [ ]
24. Do you recommend your friends and businessman
a)Yes [ ] b)No
25. Given valuable Suggestion ___________________________________________

78