Você está na página 1de 83

ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f46494c4500010100000

c484c696e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d5
346540000000049454320735247420000000000000000000000000000f6d6000100000000d32d4
85020200000000000000000000000000000000000000000000000000000000000000000000000
0000000000000000000000001163707274000001500000003364657363000001840000006c7774
7074000001f000000014626b707400000204000000147258595a00000218000000146758595a00
00022c000000146258595a0000024000000014646d6e640000025400000070646d6464000002c4
00000088767565640000034c0000008676696577000003d4000000246c756d69000003f8000000
146d6561730000040c0000002474656368000004300000000c725452430000043c0000080c6754
52430000043c0000080c625452430000043c0000080c7465787400000000436f70797269676874
202863292031393938204865776c6574742d5061636b61726420436f6d70616e79000064657363
0000000000000012735247422049454336313936362d322e310000000000000000000000127352
47422049454336313936362d322e31000000000000000000000000000000000000000000000000
000000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 I ‐Bridgestone India & MRF: An
3d4000000246c756d69000003f8000000146d6561730000040c000000247465636
Introduction
Chapter 1 ‐Indian Tyre Industry: A Brief Analysis 5 1 Overview
8000004300000000c725452430000043c0000080c675452430000043c0000080c6
of the Indian Tyre Industry 5
25452430000043c0000080c7465787400000000436f70797269676874202863292
1.1 An Introduction 5
031393938204865776c6574742d5061636b61726420436f6d70616e79000064657
1.2 Key Influencers 5
3630000000000000012735247422049454336313936362d322e31000000000000
1.3 Role of Marketing 6
000000000012735247422049454336313936362d322e310000000000000000000
1.4 Sales and Profitability 6
00000000000000000000000000000000000
1.5 Trends in the Past Years 6
1.6 Current Status and Future Trends 7
1.7 Towards the Future‐"Radialisation in India" 8
1.8 Major Players and Market Shares 9
1.9 Environment Analysis 9
1.10 Swot Analysis for the Tyre Industry 10
1.11 The Companies and Major Product Lines 11

Section II ‐Marketing
Strategies
Chapter 1 ‐Analyzing the Marketing Environment 15 1 The
Mind of the Consumer 15
1.1 Who is the Consumer? 15
1.2 Radial Tyres: Meeting the Indian Drivers "Unsatisfied Need" 16
1.3 Buying a Radial Tyre: Key Decision Makers 16
1.4 Consumer Behaviour 17 2 The Company 18

2.1 Core Competencies 18


2.1.1 Bridgestone India 18
2.1.2 MRF India 18
2.2 Company Resources 20
2.2.1 Bridgestone India 20
2.2.2 MRF India 22
2.3 Concern Areas 24
2.3.1 Bridgestone India 24
2.3.2 MRF India 25 3 The Competitors 27

3.1 Principal Competitors 27


3.2 Salient Strengths & Weaknesses 27
3.2.1 Bridgestone India 27
3.2.2 MRF India 28
3.3 Basis of Competition 29 4 Important Collaborators 30

4.1 Upstream Collaborators 30


4.1.1 Bridgestone India 30
4.1.2 MRF India 30
4.2 Collaborator Incentives 31
4.2.1 Assured Supply 31
4.2.2 Assured Quality 31
4.2.3 Just in Time Supplies 31 5 Context ‐Trends Shaping the Tyre Industry
32
5.1 Economic Environment 32
5.1.1 Unresolved Tax Issues 32
5.1.2 Increasing Cost of Raw Materials 32
5.1.3 Import Restrictions 32
5.1.4 Road and Support Infrastructures 33
5.1.5 Sources of Demand 33
5.2 Technological Environment 35
5.2.1 Indigenous Development of Radial Technology 35
5.2.2 Market Entry by International Players 35
5.2.3 Improved Capacity Utilization Techniques 35
5.3 Socio‐cultural Environment 35
5.3.1 Explosion in the Number of Nuclear Families 35
5.3.2 Higher Car Density Per Family 35
5.3.3 Shifting Away from Savings, to EMI Culture 36 Chapter 2 ‐
Segmentation, Targeting & Positioning 37 1 Basis for
Segmentation ‐Vehicle Types 37 2 Selecting the Target Segment 38

2.1 Bridgestone: The Market Specialization Approach 38


2.2 MRF: The Complete Market Coverage Approach 39 3 Differentiating and
Positioning Strategies 39
3.1 Establishing Category Membership 39
3.1.1 Bridgestone ‐High Performance with Value for Money 39
3.1.2 MRF ‐Tyres with Muscle 40
3.2 Points of Parity 40
3.3 Points of Difference 41
3.3.1 Bridgestone ‐Quality & Value for Money 41
3.3.2 MRF ‐High Endurance Tyres 41
3.4 Value Proposition 42
3.4.1 Bridgestone ‐Quality & Value for Money 42
3.4.2 MRF ‐Endurance Guaranteed 42
3.5 Positioning Statements 42
3.5.1 Bridgestone ‐Passion for Excellence 42
3.5.2 MRF ‐Tyres with Muscle 43 Chapter 3 ‐Analyzing the
Marketing Mix 44 1 The Product 44

1.1 Product Levels ‐The Customer Value Hierarchy 44


1.1.1 Core Benefit 45
1.1.2 The Basic Product 45
1.1.3 The Expected Product 45
1.1.4 The Augmented Product 45 2 The Place 47

2.1 Push and Pull Strategies in Channel Marketing 47


2.2 Channel Design 48
2.2.1 Direct and Indirect Channels 48
2.2.2 Single and Multiple Channels 50
2.2.3 Channel Length 50
2.3 Channel Management Practices 50
2.3.1 Selecting Channel Members 50
2.3.2 Training and Motivating Channel Members 51
2.3.3 Efficient Consumer Response (ECR) 52 3 Pricing Strategies 54

3.1 Basic Pricing Strategies in the Tyre Industry 54


3.2 Dealer Discounts and Allowances 55 4 Product Promotion 56

4.1 The Marketing Communication Mix 56


4.2 Developing Effective Communications 59
4.2.1 Identifying the Target Audience 59
4.2.2 Determining the communication Objectives 59
4.2.3 Designing the Communication 60 Chapter 4 ‐Market
Feedback and Control Mechanisms 62

Section III ‐Marketing Strategies: A Relative


Analysis
Chapter 1 ‐Analyzing the Overall Market Strategies 76 1
Analysis of the Overall Marketing Strategies 76
1.1 Marketing Strategy Analysis 76
1.2 Porter's Generic Strategy Analysis 78
1.3 Creating Value 80
1.3.1 Bridgestone ‐Quality and Value for Money 80
1.3.2 MRF ‐Endurance Guaranteed 80
1.4 Communicating the Value 80
1.5 Capturing the Value ‐Pricing Philosophies 81
1.6 Sustaining the Value ‐Building Relationships 81
1.7 Rating the Marketing Strategies of Bridgestone & MRF 82
CHAPTER
THE INDIAN TYRE INDUST
RY
1 A BRIEF ANALYS
IS

1.
OVERVIEW OF THEINDIAN TYRE INDUSTRY:

1.1 An Introduction to the Indian Tyre


Industry

BRIDGESTONE INDIA&
The Rs.20,000 crore Indian Tyre Industry, is highly raw material intensive and predominantly a
Cross Ply (or Bias) tyre manufacturing industry. It is highly concentrated wherein 10 large

MRFAN INTRODUCTION
manufacturers account for over 95% of the total tonnage production of 11.35 lakh M.T. It produces
all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demand
domestically.

1.2 Key
Influencers
The level of economic activity, performance of domestic automotive industry, and the
faring of the transport sector directly influence the performance of the tyre industry in India.
With the replacement segment dominating the overall tyre demand, the industry remains
inherently vulnerable to economic cycles. While radialisation has become the norm in the
passenger car segment, in the bus and truck tyre segment, its acceptance is still limited.
Bus and truck radialisation could emerge in the long term as the quality of roads improves
and the restrictions on overloading are better enforced. The practice of re-treading, which
is gaining increasing acceptance, could pose a challenge to replacement demand in the
medium term. The ability of the re-treading sector to capture potential replacement
demand would depend on the awareness among customers (of the benefits of retreading)
and also the quality of retreading done. Given the low levels of penetration of two-wheelers
and passenger cars in the country, OEM demand is likely to increase, which in turn would
push up replacement demand with a lag. Slowdown in automotive industry and global
economy in general negatively impacted the Indian tyre industry in 2009. The industry
tonnage growth was only 2.19% during first nine months of FY 2009, compared to 7.38%
growth experienced during the same period last year. Demand side was also severely
affected as almost all auto manufacturers were forced to adjust their production last
year. A major relief for tyre manufacturers was provided by the government by reducing
the excise duty on tyres from 14% to 10% in December 2008, and further to 8% in
February 2009

1.3 Role of
Marketing
Over the years, tyre manufacturers have developed a vast marketing network using dealers and
depots and as such all types of tyres are now easily available even in the remotest corners of the
country. No doubt, international auto majors in India now roll out their vehicles using Indian
manufactured tyres.

1.4 Sales and


Profitability

The Indian Tyre Industry produced 821 lakh units of tyres garnering approximately Rs. 21,000
crore in FY 2009 -2010. The top players are now focusing on branding their products and
strengthening their distribution network so as to increase their market share. The industry derives
its demand from the automobile Industry. While the OEM (Original Equipment Manufacturers)
market off take is dependent on the new vehicle sales, replacement market demand depends on the
total population of vehicles on road, road conditions, vehicle scrapping rules, overloading norms
for trucks, average life of tyres and prevalence of tyre retreading.

1.5 Trends in the Past


Years
As the economy in general; and automobile industry in specific slowed down in FY 2009, the tyre
demand too came under pressure. The industry production registered a 5 year CAGR of 6.44%
between FY 04-09. The largest category of Truck & Bus tyres recorded a 5 year CAGR of 2.96%
(slower than the industry average) while Light Commercial Vehicle (LCV), motorcycle and car
tyre categories grew at 6.07%, 10.70% and 6.90% respectively (relatively faster than the industry
average).

Off the Road (OTR) tyre category (customized tyres) which fetches a higher margin compared to
other tyre categories, was the fastest growing. The OTR tyre category had registered a 5 year
CAGR of over 8.85% in the last five years. Most of the top players increased their capacity for the
production of OTR tyres so as to improve their product mix, this being a high margin
product. Also in the face of global slowdown and stiff Chinese competition, the export market off
take declined by 9.82% during this period.

On the face of demand-side pressures, the tyre industry saw production adjustments from all the
major players in the last couple of months. The government too tried to provide external stimulus
by effecting 6% excise duty cut across industries (the excise duty for tyres was brought down from
14% to 10% w.e.f. December 7, 2008, and then further reduced to 8% w.e.f. February 25, 2009). In
all the gloom; one silver lining for the industry was the easing of the raw material prices from
September 2008 onwards. However, their future movement still remains uncertain. Based on data
from the Rubber Board, natural rubber prices have risen about 50% in the last 6-7 months. In fact,
prices in the Indian market are presently ruling 5-6% higher than the same in international markets.
As a result, tyre makers are facing significant rise in cost production. This has forced the industry
to begin hiking prices in an attempt to keep the already thin margins intact.

Tyre majors have already hiked prices. Moreover, due to shortfall in domestic
supply and increasing gap between domestic and international prices of rubber,
the tyre manufacturers have increased the import of natural rubber. According
to estimates by Automotive Tyre Manufacturers Association (ATMA), tyre
producers are likely to import 50% of their total natural rubber consumption
due to tight domestic supply. With profitability of tyre companies having a
strong correlation to raw material prices and as these companies operate on
thin margins, this would remain an area of concern.
1.6 Current Status & Future
Trends
As regards to the demand scenario, the poor demand growth in FY 2009 - 2010 was primarily on
account of decline in OEM production. Continuation of poor volume growth could affect the
profitability further. Despite these challenges, according to CARE (Credit Rating & Research) Ltd.,
while the industry may register a low tonnage growth in FY 2009, the long term prospective seems
to be bright. They expect the industry to experience a CAGR of approximately 8.21% between
FY08 to FY13. Automotive companies have started experiencing increasing sales and raw material
prices are stabilizing which will boost tyre sales over the coming months. However, experts suggest
there will be some time lag before profitability picks 7 |Page
up as tyre manufacturers are still carrying high cost inventories. Though the outlook in the
immediate term is uncertain, the long term outlook for the sector remains positive.

1.7 Towards the Future – “Radialisation”


in India
Radialisation in India though in its infancy in T&B tyre category; is making inroads. Most
manufacturers have capex plans for radial T&B tyres with no new capacity being added for bias
tyres. This indicates that the industry foresees radialisation to take further hold in the T&B tyre
category. "Rate of radialisation is actually an index of the status of road development, vehicle
engineering and the economy in general". Notwithstanding the problem areas, constraints and
limitations, the tyre companies have kept pace with the technological improvements that
radialisation signifies and offer state-of-the-art product (tyres), comparable to the best in the
world.

Radialisation can be aptly classified as the most important innovation in tyre technology. Despite its
several advantages (additional mileage; fuel saving; improved driving) radialisation in India earlier
did not catch on at a pace that was expected, since its introduction way back in 1978. This could be
attributed due to several factors, viz. Indian roads generally not being suitable for ideal plying of
radial tyres; (older) vehicles produced in India not having suitable geometry for fitment of radial tyres
(and hence the general, and wrong, perception that radial tyres are not required for Indian vehicle;
unwillingness of consumer to pay higher price for radial tyres etc.
However, the situation has radically changed in recent years, especially for the passenger car tyre
segment where radialisation has crossed 98% mark and is expected to reach 100% in two to three
years. In the Medium and Heavy Commercial vehical segment current level of radialisation is upto
8%, and that in the LCV segment is estimated at 18%.
A few years back a beginning was made in Radialisation of truck and bus and LCV tyres and this
process is gaining momentum.
1.8 Majjor Players aand Market
SShares

major pplayers incclude MRF Ltd. whicch is the


market leader (222% markeet share) followed MMRF Tyres

closely by Apolloo Tyres Ltdd. (21%). TThe other 5 AApollo Tyres


ffd8ffe000104a4649460001020100c800c
major pplayers aree JK Tyre & Industtries Ltd. 7 JJ.K. Tyres CCeat BBirla GGoodyear
80000ffe20c584943435f50524f46494c45
00010100000c484c696e6f021000006d6e
BBridgestone OOthers
(18%), Ceat Ltd.. (13%), BBirla Tyress (10%), 74725247422058595a2007ce0002000900
0600310000616373704d5346540000000
Goodyeear (7%) aand Bridgesstone (5%)). On an 049454320735247420000000000000000
000000000000f6d6000100000000d32d48
averagee, 55% of thhe productioon is for 502020000000000000000000000000000
000000000000000000000000000000000
repplacement market,, followed bby 29.8% soold to 000000000000000000000000000000000
011637072740000015000000033646573
OEMMs directly and the remaining is exported . 63000001840000006c77747074000001f0
00000014626b707400000204000000147
258595a00000218000000146758595a00
00022c000000146258595a000002400000
0014646d6e640000025400000070646d6
1.9 Envvironment a nalysis – Maajor forces sshaping the trajectory
464000002c400000088767565640000034
oof the tyre inndustry c0000008676696577000003d4000000246
c756d69000003f8000000146d656173000
0040c00000024746563680000043000000
00c725452430000043c0000080c6754524
30000043c0000080c625452430000043c0
000080c7465787400000000436f7079726
967687420286329203139393820486577
6c6574742d5061636b61726420436f6d70
616e79000064657363000000000000001
2735247422049454336313936362d322e
310000000000000000000000127352474
22049454336313936362d322e31000000
000000000000000000000000000000000
000000000000000
1.10 Swot Analysis for the Tyre
Industry

Strengths

. Established brand names (key in the replacement market) . Extensive distribution


networks -For example, Apollo Tyres has more than 118 district offices, 12 distribution
centres and 4,250 dealers. . Good R&D initiatives by top players.

Weaknesses

. Cost Pressures - The profitability of the industry has high correlation with the prices
of key raw materials such as rubber and crude oil, as they account for more than 70% of the
total costs.
. Pricing Pressures – The huge raw material costs have resulted in pressure on the
realisations and hence, the players have been vouching to increase the prices, although, due
to competitive pressures, they have not been able to pass on the entire increase to the
customer.
. Highly capital intensive - It requires about Rs 4 billion to set up a radial tyre plant
with a capacity of 1.5 million tyres and around Rs 1.5-2 billion, for a cross-ply tyre plant of
a 1.5 million tyre-manufacturing capacity.

Opportunities

. Growing Economy leads to Growing Automobile Industry leads to Increasing OEM


demand that in turn leads to Subsequent rise in replacement demand
. With continued emphasis being placed by the Central Government on development
of infrastructure, particularly roads, agricultural and manufacturing sectors, the Indian
economy and the automobile sector/ tyre industry are poised for an impressive growth.
Creation of road infrastructure has given, and would increasingly give, a tremendous fillip
to road transportation, in the coming years. The Tyre industry would play an important role
in this changing road transportation dynamics.
. Access to global sources for raw materials at competitive prices, due to economies of
scale. . Steady increase in radial Tyres for MHCV’s and LCV’s.

Threats

. Continuous increase in prices of natural rubber, which accounts for nearly one third
of total raw material costs.
. Cheaper imports of Tyres, especially from China, selling at very low prices, have
been posing a challenge. The landed price is approximately 25% lower than that of the
corresponding Indian Truck/ LCV tyres. Imports from China now constitute around 5% of
market share.
. With crude prices scaling upwards, added pressure on raw material prices is expected .
Ban on Overloading, leading to lesser wear and tear of tyres and subsequent slowdown in
demand. However, this would only be a short-term negative. . Cyclical nature of automobile
industry.

1.11 The Companies and Major Product Lines

Bridgestone India Private Limited


Bridgestone Corporation, Japan was established in the year 1931. Today, the company is a
US $23.2 billion Corporation with its headquarters at Tokyo. It controls 18.2% of global
market and sells products in over 150 nations. The company has 47 tyre plants and 93 non-
tyre plants, 3 technical research and development centres and 10 proving grounds. Today,
Bridgestone has a worldwide work force of more than 110,000 employees. It is a global tyre
manufacturing company, which emphasizes on Japanese traditions. It is still growing and
expanding and aiming at increasing its share in the world tyre and tubes, industrial rubber
products like belts, hose, chemical products, sporting goods, automotive parts, electro
materials and marine products etc.

Bridgestone India Private Limited (BSID) is one of the leading tyre manufacturers in India.
It began as a joint venture between Bridgestone Corporation of Japan (BSJ) and The
Associated Cement Companies of India Ltd. (ACC), in 1996.
Their first plant was established at Kheda (Madhya Pradesh) with a paid up capital of Rs.
2753 million. With the latest technology from Bridgestone, Japan, the plant at Kheda,
th
covering 265,500 sq. mts. was officially inaugurated on 12 of November 1998.

Presently BSID has a state-of-the-art manufacturing facility near Indore, Madhya Pradesh
and is continuously increasing the production capacity in order to meet market requirements.
Here they manufacture the widest range of steel belted radial tyres for almost all the cars &
multi-utility vehicles, produced in India. These manufacturing facilities are backed by the
highly sophisticated Bridgestone Technical Centre at Tokyo, the main out of the 4 Technical
Centers worldwide, which performs rigorous research & development activities to offer
most appropriate tyres for Indian roads.

Over a period of time the company has established a distinct culture with various HR
principles and systems. With a strong work force of around 900 employees, it has
continuously strived to contribute to the Indian Society and realize happiness by achieving
targets with mutual trust and understanding.

Products

BSID has come a long way in establishing itself as a leader in Radial tyres segment,
producing around 2.7 million tyres per year. The products include Passenger steel belted
radial tyres and tubes and Light commercial vehicle steel belted radial tyres and tubes.
These tyres are used for passenger cars in India and are supplied to almost all the major
Original Equipment Manufacturers. Tyres are the strength and passion of BSID, a force that
has driven them to be one of the best in the business. As a premier player in the Indian tyre
market, Bridgestone continues to give its customers a range of innovative products and
services.

Recent Forays

Bridgestone India launched two new tyre range B250 and ER 300 which is likely to help
cement its place as a leading tyre supplier in the Original Equipment Manufacturers and
replacement market in the country. The performance or comfort tyre range ER300 has
capabilities for running in wet and dry conditions. The B250 variants received approvals
from OEMs like Honda and Hyundai for its Civic and Verna models respectively.

Bridgestone has around 30 percent market share (radial tyre segment) in OEM and
replacement market, in the country. The company expanded its facility near Pune from
around 10,500 tyres per day to more than 11,000 tyres per day to be achieved by the end of
the 2008. The company was in the process of upgrading its facility and automating its
manufacturing process to optimise efficiency to ensure consistent and steady supply to
customers.
MRF

Established in 1946 as a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras
(now Chennai), MRF ventured into the manufacture of tread rubber in the year 1952. The quality of
the product was so high that by close 1956 MRF had become the market leader with 50% share of
the tread-rubber market in India. In 1961, MRF entered into tyre manufacturing in collaboration
with the Mansfield Tire & Rubber Company of USA. Since then MRF has come a long way towards
achieving greater heights in the automotive tyre industry, with 6 manufacturing units in India. It has
a huge distribution network of 2,500 outlets within India and exports to over 65 countries
worldwide. .

Today, MRF is the market leader among tyre manufacturers in India, with a 24% share terms of
revenues. Its leadership position, coupled with its strong brand recall and high quality, MRF
commands the price-maker status. MRF has a strong presence in the T&B segment, the largest
segment of the tyre industry, and commands around 19% market share in the segment. It is the
leader in the two/ three-wheeler segment (including motorcycles) and tractor front tyres, and holds
second place in the passenger cars and tractor - rear tyres. Exports account for around 12% of the
gross sales in MRF.

Products

MRF is the leading manufacturer of tyres for almost all segments. Being driven by technology and
product innovation, every tyre that comes out is of the highest standards and tested to weather the
toughest conditions on any road. With more than 85 tyre variants, MRF holds the highest market
share of 22% in terms of sales volume in the tyre industry.

Apart from tyre manufacturing tyres, MRF also manufactures its MUSCLEFLEX brand of
Conveyor Belting at one of the most advanced, 'State of the Art', Facilities in India. Incorporating
the latest manufacturing techniques, MUSCLEFLEX-Conveyor Belting has gained rapid acceptance
in markets worldwide.

MRF PRETREADS is yet another innovation from MRF Industries which is the most advanced
precured retreading system in India. MRF forayed into retreading as far back as 1970. Today, MRF
has perfected the art of recured retreading with its extensive knowledge in tyres and rubber. MRF’s
diverse business interests also include Paint and Coats, and Toys.

Recent Forays

Became the first domestic company to venture into the niche area of developing and manufacturing
of aviation tyres branded ''Aero Muscle'' for helicopters and aircrafts which targeted the defence
sector. The critical raw materials were sourced from overseas suppliers. It is estimated that the
company invested more than Rs 150 crore to set up the new production facility at its existing plant
in Medak district of Andhra Pradesh.
ffd8ffe000104a4649460
001020100e100e30000ff
CHAPTER
e20c584943435f50524f4
6494c4500010100000c42
84c696e6f021000006d6
e74725247422058595a2
007ce000200090006003
10000616373704d53465
40000000049454320735
24742000000000000000
0000000000000f6d6000
100000000d32d4850202
00000000000000000000
00000000000000000000
00000000000000000000
00000000000000000000
00000000000000011637
07274000001500000003
36465736300000184000
0006c77747074000001f
000000014626b7074000
ffd8ffe000104a464 ffd8ff
e0001
9460001020100980 04a46
49460
0980000ffe20c5849 00102
01009
43435f50524f46494 80098

MAR Kc4500010100000c48
0000ff
ANALYZINGTHE KET EN e20c58
THEFOUR A C 4c696e6f021000006 49434
35f505
PPPROACH d6e7472524742205 24f464
8595a2007ce000200 94c45
00010
0900060031000061 10000
1. 0c484c
6373704d53465400 696e6f

THEMINDOOFTHE CC ONSU 0000004945432073


5247420000000000
02100
0006d
6e747
MMER:
1.1 Whho is the 25247
Coonsumer?
0000000000000000 42205
While MMRF has esstablished aa wide footpprint and ann overall leaad across thhe entire tyrre8595a
00f6d600010000000
market inn India, BBridgestone has emergeed as a clearr market leaader in the nniche Passenger2007ce
Car Seegment. Forr comparrative purpooses betweeen these0d32d48502020000
commpanies in this study, we shall00020
coonfine ourseelves to thee niche seegment of RRadial tyres in the Pass enger Car ssegment. 00900
0000000000000000 06003
The typpical consummer in thisreport is aan Indian P assenger Car owner, wwho is lookking for10000
thee best-fit tyre for his car. 0000000000000000 61637
0000000000000000
Also, siince Bridgeestone and MRF supplly tyres to OEM (Origginal Equippment53465
3704d

0000000000000000
Manuufacturers)** and Tyrre dealers, these businness-to-busiiness partneers are anotther target40000
consumer ssegment forr the commpanies. 00004
0000000000000000 94543
Target ccustomers:
0000000000011637 20735
24742
1) The Indian passenger ccar owner
2) OEMs 0727400000150000 00000
00000
3) Tyre dealerrs 0003364657363000 00000
001840000006c777
ffd8ffe000104a46494600010201009800980000ffe20c584943435f50524f46494c4500010100000c484c69 00000
00000
6e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d5346540000000049
47074000001f00000
454320735247420000000000000000000000000000f6d6000100000000d32d485020200000000000000000 000f6d
0000000000000000000000000000000000000000000000000000000000000000000000000000001163707 60001
0014626b70740000
274000001500000003364657363000001840000006c77747074000001f000000014626b707400000204000 00000
000d3
0204000000147258
000147258595a00000218000000146758595a0000022c000000146258595a0000024000000014646d6e640
000025400000070646d6464000002c400000088767565640000034c0000008676696577000003d40000002 2d485
595a000002180000
46c756d69000003f8000000146d6561730000040c0000002474656368000004300000000c7254524300000 02020
00000
43c0000080c675452430000043c0000080c625452430000043c0000080c7465787400000000436f7079726
00146758595a0000
9676874202863292031393938204865776c6574742d5061636b61726420436f6d70616e790000646573630 00000
00000
022c000000146258
000000000000012735247422049454336313936362d322e31000000000000000000000012735247422049
454336313936362d322e31000000000000000000000000000000000000000000000000000000 00000
595a000002400000 00000
00000
0014646d6e640000 00000
00000
025400000070646d 00000
6464000002c40000 00000
00000
0088767565640000 00000
00000
034c000000867669 00000
6577000003d40000 00000
00000
00246c756d690000 00000
1.2 Radial Tyres: Meeting the Indian driver’s
“unsatisfied” need
As with consumers across all markets in India, the Indian driver’s mind has always been
preoccupied with “value for money”. The Indian driver measures this value for money in many
ways: through improved mileage, lower maintenance cost, improved safety, higher average life,
or even improved drive comfort.

The Indian driver had for long put up with poor road infrastructure, unreliable traditional nylon
threaded cross-ply tyres, higher maintenance costs and a very uncomfortable driving experience.
There was a clear need for a better tyre technology. Radial tyres, with their promise of far better
ride comfort, mileage and product life, seemed like the logical choice. However, though radial
tyres were introduced into Japanese and American markets way back in 1960, It was not until
1998 (when Bridgestone entered the Indian market with its line of radial tyres), that Indian car
owners were finally able to lay their hands on radial tyres.

The OEMs were quick to adopt the technology and started rolling out their new cars on radial
tyres. What followed was a “mass radialization” of the passenger car market. So much so, that
today, radial tyres have a 98% market share in the Indian passenger car tyre market. It was
clearly a case of bringing in the right product to address the “unsatisfied need” of the customer.

1.3Buying a Radial Tyre: Key decision


makers
Unlike FMCG products, buying a radial tyre is usually not done on impulse. At an average price
of Rs.12,000/- , radial tyres are not a cheap buy for the average Indian middle-class family. Some
amount of research and thought goes, before deciding on the ideal tyre.

Studies show that an average car tyre buyer looks for reviews from different sources such as
mechanics, dealers, OEM endorsements and also from close friends and family. These sources
hold a lot influence over which brand of tyre the consumer decides to buy.

Key decision influencers in buying a tyre:


1) The local mechanic 2) Tyre dealers 3)
OEM endorsements 4) Close friends and
family
ffd8ffe000104a4
64946000102010
0c800c80000ffe2
0c584943435f50
524f46494c4500
010100000c484c
696e6f02100000
6d6e7472524742
1.4Consumer Behavior 2058595a2007ce
00020009000600
Frequency of purchase in the passenger car tyre industry is solely decided by the life of an
31000061637370
average tyre. Depending on the kind of usage, an average radial tyre can last anywhere between
4d534654000000
one to five years.00494543207352
47420000000000
00000000000000
ffd8ffe000104a4649460001
0000f6d6000100
020100c800c80000ffe20c58
000000d32d4850
4943435f50524f46494c4500
Taxi (commercial)
20200000000000
010100000c484c696e6f0210 1
00006d6e747252474220585
Average business00000000000000
00000000000000
95a2007ce0002000900060032 -3
10000616373704d5346540000000000000000
traveler
0000004945432073524742000000000000000
0000000000000000000000000000000000000
Average family
0000f6d6000100000000d32d4 -5
00000000000000
4850202000000000000000011637072740000
0000000000000000000000001500000003364
0000000000000000000000065736300000184
000000000000000000000000000006c777470
0000000000116370727400074000001f00000
001500000003364657363000014626b707400
0001840000006c777470740
00020400000014
00001f000000014626b70740
7258595a000002
0000204000000147258595a
0000021800000014675859518000000146758
595a0000022c00
a0000022c000000146258595
0000146258595a
a0000024000000014646d6e6
40000025400000070646d6400000240000000
64000002c4000000887675614646d6e640000
5640000034c00000086766902540000007064
6577000003d4000000246c76d6464000002c4
00000088767565
56d69000003f8000000146d6
561730000040c0000002474640000034c0000
656368000004300000000c700867669657700
25452430000043c0000080c6
0003d400000024
75452430000043c0000080c6
6c756d69000003
25452430000043c0000080c7
f8000000146d65
465787400000000436f70797
61730000040c00
2696768742028632920313900002474656368
3938204865776c6574742d5
00000430000000
061636b61726420436f6d706
0c725452430000
16e79000064657363000000
00000000127352474220494
043c0000080c67
54336313936362d322e31005452430000043c
000000000000000000001270000080c625452
35247422049454336313936430000043c0000
362d322e310000000000000080c7465787400
00000000000000000000000000000436f7079
00000000000000000072696768742028
63292031393938
204865776c6574
742d5061636b61
726420436f6d70
616e7900006465
73630000000000
2.

THE C OMPANY:

2.1 Core Competencies:

2.1.1 Bridgestone India:

International Quality and


pedigree:
Quality counts as the number one reason why OEMs prefer Bridgestone over other tyre
manufactures. Bridgestone has always banked on its quality USP to capture market share.
The Japanese attention to quality seems to have percolated down to Bridgestone India
from its parent company. World over, the Bridgestone brand has been synonymous with
cutting-edge technology and quality.
The globalbrand awareness that Bridgestone Corporation’s collaboration
The
withF1has
F1
association:
earned and its recognition as a leader inthe global tyreindustry has helpe
Quantity ditsIndianarm,
of purchase in the car position
BSID, tyre industry varies
itself within a given
asa premium tyre year. The passenger
manufacturer car tyre
intheI
market displays moderate seasonality in sales. Higher sales usually correspond with periods when
ndian market.
there is an increased use of passenger vehicles, such as during school vacations (family outings),
Channeland local festivals and occasions (for example, the Sabarimala pilgrimage season
school reopening,
drives up reach:
With over
the sale 3000 significantly
of tyres distributors and dealers,
in and aroundBridgestone India has one of the largest reach
Coimbatore).
across the country. A Bridgestone dealer is never far away from you, no matter where you
Since Tyres
are.are a derived-demand product (its demand is derived from the demand for automobiles)
government policies such as a drop in duties and taxes on car manufacturers, also indirectly
contribute
2.1.2 MRFto higher tyre sales.
India
Given the high amount of product homogeneity in the tyre market; prices do not vary greatly
Undisputed overall market
between companies. However, international players such as Bridgestone do markup their prices
leader: ffd8ffe000104a46494600010201008d008d0000ffe20c58494
slightly higher
With ona account of their
24% share in superior quality
the overall and
tyre the extended warranties. On an average, the
3435f50524f46494c4500010100000c484c696e6f021000006d
buyer is usually
industrymore
MRF concerned about
is the king ofthe performance
tyres on the of the tyres than its price.
6e74725247422058595a2007ce000200090006003100006163
Indian road. Its Leadership position, 73704d53465400000000494543207352474200000000000000
coupled with its strong brand recall and 00000000000000f6d6000100000000d32d4850202000000000
high quality, MRF commands the price- 00000000000000000000000000000000000000000000000000
maker status. MRF has a strong presence 00000000000000000000000000000000000011637072740000
in the T&B segment, the largest segment 01500000003364657363000001840000006c77747074000001
of the tyre industry, and commands around f000000014626b707400000204000000147258595a00000218
19% market share in the segment. It holds 000000146758595a0000022c000000146258595a0000024000
the second place in the passenger cars. 000014646d6e640000025400000070646d6464000002c40000
0088767565640000034c0000008676696577000003d4000000
246c756d69000003f8000000146d6561730000040c00000024
74656368000004300000000c725452430000043c0000080c67
5452430000043c0000080c625452430000043c0000080c7465
787400000000436f7079726967687420286329203139393820
4865776c6574742d5061636b61726420436f6d70616e790000
64657363000000000000001273524742204945433631393636
2d322e31000000000000000000000012735247422049454336
313936362d322e310000000000000000000000000000000000
00000000000000000000
Complete market
coverage:
Over the years, MRF has created a formidable product line, length and breadth to serve
every segment of the industry. Its complete market coverage is one of the reasons why it
is the undisputed market leader today.

MRF offers tyres for the following vehicle segments in the tyre industry:
1) Passenger Cars 2) Two wheelers 3) Heavy Commercial Vehicles
(HCV) 4) Light Commercial Vehicles (LCV) 5) Of the Road Vehicles
(OTR) 6) Farm Vehicles (FV)

Brand recognition and brand


recall: ffd8ffe000104a464946000102010073006c00
When it comes to top-of-mind brand recall, MRF beats00ffe20c584943435f50524f46494c450001010
the rest of the competition hands down. Unlike0000c484c696e6f021000006d6e74725247422
Bridgestone India, MRF has for long concentrated on058595a2007ce0002000900060031000061637
aggressive brand promotion. Sports celebrities and event3704d534654000000004945432073524742000
endorsements have been a major vehicle for their brand0000000000000000000000000f6d6000100000
promotion activities. From signing on three sports000d32d4850202000000000000000000000000
heavyweights at one go (Sachin Tendulkar, Brian Lara,00000000000000000000000000000000000000
and Steve Waugh), to endorsing national rally circuits, to00000000000000000000000000000000011637
founding the MRF pace foundation, MRF has been at the07274000001500000003364657363000001840
forefront of aggressive brand building: one reason why000006c77747074000001f000000014626b707
400000204000000147258595a0000021800000
MRF commands more brand recognition than
0146758595a0000022c000000146258595a000
Bridgestone India, despite the latter’s superior quality
0024000000014646d6e6400000254000000706
and international credentials. 46d6464000002c400000088767565640000034
c0000008676696577000003d4000000246c756
d69000003f8000000146d6561730000040c000
0002474656368000004300000000c725452430
000043c0000080c675452430000043c0000080
Strong c625452430000043c0000080c7465787400000
exports: 000436f7079726967687420286329203139393
Exports account for around 12% of the gross sales in 8204865776c6574742d5061636b61726420436
MRF. The company exports to
f6d70616e79000064657363000000000000001
over 65 countries worldwide. It is largest tyre exporter in South Asia. Over the past
2735247422049454336313936362d322e31000
decade, MRF has improved its technologies and tyre quality significantly, to compete
00000000000000000001273524742204945433
effectively with other players in the international market. Most of its exports are non-
6313936362d322e31000000000000000000000
radial, nylon cross-ply tyres, and are exported to other developing countries such as
000000000000000000000000000000000
Sri Lanka.
2.2 Company Resources

2.2.1 Bridgestone India


Source: Automotive Digest

A high volume game:


ffd8ffe000104a46494600010201005200520000ffe20c584
The Tyre industry is driven more by 943435f50524f46494c4500010100000c484c696e6f021000
volumes than by margins. Bridgestone 006d6e74725247422058595a2007ce000200090006003100
being one of the big five players in the 00616373704d53465400000000494543207352474200000
global tyre industry, generates an annual 00000000000000000000000f6d6000100000000d32d48502
tyre production equivalent to the total 02000000000000000000000000000000000000000000000
demand of the Indian market. 00000000000000000000000000000000000000000000000
00011637072740000015000000033646573630000018400
00006c77747074000001f000000014626b70740000020400
0000147258595a00000218000000146758595a0000022c00
Pedigree: 0000146258595a0000024000000014646d6e640000025400
Bridgestone India Pvt. Ltd (BSID) is a fully owned subsidiary of Bridgestone Corporation
000070646d6464000002c400000088767565640000034c00
headquartered in Tokyo, Japan. The global company employs over 133,500 people
00008676696577000003d4000000246c756d69000003f800
worldwide and has offices, factories or0000146d6561730000040c00000024746563680000043000
continental headquarters in more than 150
countries.
[1]
MNCs likeBridgestone 00000c725452430000043c0000080c675452430000043c00
Corporation have deeppocketsandcan
easily withstandlossesfor acoupleof 00080c625452430000043c0000080c746578740000000043
years ormore. Theirfinancial muscl
6f70797269676874202863292031393938204865776c6574
es also permit themtoinvest in R&D, which is beyond the reach of the
742d5061636b61726420436f6d70616e7900006465736300
average Indiantyre manufacturer.
00000000000012735247422049454336313936362d322e31
00000000000000000000001273524742204945433631393
6362d322e310000000000000000000000000000000000000
Resources:
00000000000000000
Bridgestone India set up base in India in February 1996 and set up the factory two years
later at Kheda near Indore in Madhya Pradesh. The company is one of the leading tyre-
makers in both the OEM and replacement markets in the country.The company has a
production facility at Pithampur near Indore and has announced an investment of Rs259
crore for expansion. This will increase production capacity by over 40% to 15,000 tyres
[2]
per day by the middle of next year.

Workforce:
As a part of the expansion plans, Bridgestone plans to hire 300 more people to its 700
hundred strong Indian workforce in the coming financial year.

Technology:
The name Bridgestone has been synonymous with cutting edge technology for some time
now. Over the years, the company has benefited directly from its involvement in Formula
One racing. The lessons learned through Bridgestone’s successful participation at F1
circuits have translated into innovations that can be applied to the design and manufacture
of high performance tyres. The global brand awareness that
20 |Page
Bridgestone Corporation’s collaboration with F1 has contributed and its recognition as a
leader in the global tyre industry has helped its Indian arm, BSID, position itself as a
premium tyre manufacturer in the Indian market.

Also, this formidable reputation for quality and high-end technology has helped BSID
emerge as the most preferred tyre supplier to OEMs, which accounts for 24% of the total
[3]
passenger car tyre market in India.

Financial health:
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The long term debt equity ratio seems to be very healthy but the reason for that is because
it’s a 100% fully owned subsidiary Co. The same can also be said about the interest
coverage ratio. The raw material costs form a major chunk of overall operating expenditure
and so any fluctuation in that area could affect the Cos overall prospects adversely. This is
also visible from the fact that the operating margin is very low as can be deduced from the
PAT/Total income percentage. The current ratio and the quick ratio are pretty decent.
However the average inventory days seems to be a cause for concern. This could be due to
the recession which has also hit overall demand for automobiles in general. Yet the growth
in total operating income and PAT are welcome signs.

2.2.2 MRF India

Infrastructu
re
MRF primarily produces tyres at its seven plants located in various places in South India.
The company’s installed tyres capacity as on September 2008 was 25.3 mn tyres. Tubes
capacity stood at 26 mn numbers as on Sep’08. Other business operations of the company
(account for 6% of sales) consist of manufacturing pre-cured treads, tread rubber,
conveyor belts, specialty surface coatings etc. The details of capacity utilization in respect
of tyres in the last few years are given below:

Strong demand growth particularly in the passenger car and LCV tyres segment over the
last five years has assisted MRF’s capacity utilisation staying well above 90% (except
FY05). The high capacity utilisation is despite company’s installed capacity of tyres
having grown from 17.4 mn tyres p.a. in Sep’04 to 25.3 mn p.a. in Sep’08. In tonnage
terms, truck & bus tyres accounted for more than 50% of the production followed by tyres
for passenger cars, motorcycles and LCVs. MRF also manufactures tyres for Tractors,
Scooters, Off The Road vehicles etc.
Market Leader in overall Indian tyre
market
MRF has the advantage of being the undisputed leader in the overall tyre market. MRF
has with its portfolio of tyres for the complete automobile market, has made its presence
felt in all segments of the tyre market. While it is the leader in 2 wheeler and Light
Commercial Vehicle tyre markets, it comes a close second in the Heavy Commercial
Vehicle and Passenger Car tyre markets.

Strong
exports:
Exports account for around 12% of the gross sales in MRF. The company exports to over
65 countries worldwide.
Financial
health:
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The long term debt equity ratio is pretty healthy. The raw material costs form a major chunk
of overall operating expenditure and so any fluctuation in that area could affect the Cos
overall prospects adversely. This is also visible from the fact that the operating margin is
very low as can be deduced from the PAT/Total income percentage. There has been a
decline in PAT over the last year and that is a cause for concern but it could be attributed to
the recession that hit the economy .The current ratio and the quick ratio are
23 |Page
pretty decent. The intense competition in the sector has also had its impact on the Co going
by its PAT/Total Income percentage.

2.3Concern Areas:

2.3.1 Bridgestone India

Low market coverage:

Though Bridgestone has been in India for over a decade now, it has restricted itself almost
entirely to the passenger car radial tyre segment. Even though Bridgestone is the
undisputed leader in this segment with a market share of over 30%, the passenger car
segment accounts for a meager 21% of the total tyre market in India. There is a huge
untapped tyre market outside this segment, especially in the Heavy Commercial Vehicles
segment.
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Source: AT
MA

Brand recognition and recall:

Bridgestone is one of the leading brands world over. Its association with the F1 racing
event has given it a very high visibility and a formidable reputation of being a technology
leader.

Yet, when it comes to the Indian market, MRF seems to have beaten it at the brand
promotion game. While Bridgestone is the preferred tyre supplier to OEMs (due to its
superior quality and durability), customers in the Replacement market (market for
replacement of worn out OEM tyres) seem to recall the MRF brand more often than
Bridgestone.
This is mainly due to the fact that while MRF pursues a pull strategy through aggressive
brand promotion activities to gain top-of-mind recall, Bridgestone banks on a push
strategy by maintaining close Channel relations, heavy dealer incentives and quality as a
value proposition, to push its tyres through to the customer.

When we consider the fact that the replacement market accounts for nearly 54% of the
passenger car tyre market as seen below, we see the huge opportunity that Bridgestone
seems to be missing here.
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67565640000034c0000008676696577000003d4000000246c756d69000003f
00c800c80000ffe20c584943435f5
8000000146d6561730000040c0000002474656368000004300000000c72545
0524f46494c4500010100000c484
2430000043c0000080c675452430000043c0000080c625452430000043c000
c696e6f021000006d6e747252474
0080c7465787400000000436f7079726967687420286329203139393820486
22058595a2007ce0002000900060
5776c6574742d5061636b61726420436f6d70616e790000646573630000000
0310000616373704d53465400000
000000012735247422049454336313936362d322e31000000000000000000
0004945432073524742000000000
000012735247422049454336313936362d322e31000000000000000000000
000000000000000000000000000000000 0000000000000000000f6d600010
2.3.2 MRF India 0000000d32d48502020000000000
0000000000000000000000000000
Late entrant into the Radial tyre 0000000000000000000000000000
market: 0000000000000000000000000000
With a current market share of 24% MRF has a firm0116370727400000150000000336
grip over the tyre
Passenger Car Tyre Segment4657363000001840000006c77747 market in India. However, back in
074000001f000000014626b70740
1998, when Bridgestone entered the Indian market, none of the Indian
0000204000000147258595a00000
218000000146758595a0000022c0
manufactures including MRF had a 00000146258595a0000024000000
014646d6e6400000254000000706 JK Tyres
radial tyre product portfolio. Bridgestone
seized the first-mover 46d6464000002c40000008876756 Bridgestone
advantage and quickly capitalized on 5640000034c00000086766965770
Others
the trend of passenger car OEMs adopting the radial00003d4000000246c756d6900000
tyre technology. By the year 2000,
3f8000000146d6561730000040c0
Bridgestone India had consolidated its position as the No.1 leader in the passenger car
0000024746563680000043000000
tyre market, which was by now almost entirely radialized.
00c725452430000043c0000080c6
75452430000043c0000080c62545
2430000043c0000080c746578740
0000000436f70797269676874202
863292031393938204865776c657
4742d5061636b61726420436f6d7
0616e79000064657363000000000
0000012735247422049454336313
936362d322e31000000000000000
0000000127352474220494543363
13936362d322e310000000000000
0000000000000000000000000000
0000000000000MRF
Though MRF had introduced the ZIGMA CC Radial tyre way back in 1989, it lacked the
technology and expertise to produce a good product line-length of radial tyres for all car
types. But MRF has taken up the challenge in a big way and indigenously developed its
radial technology. Today, it has succeeded in capturing a market share of 18% in the
passenger radial car tyre market, second only to Bridgestone India.

Dealer relations:

MRF has aggressively pursued a Pull marketing strategy to sell its tyres. In a pull strategy,
the manufacturer uses advertising, promotions and other forms of communications to
induce the consumers to demand the product from the dealers. MRF therefore almost
exclusively concentrates on brand awareness exercises, such as advertisements and
endorsements. Compared to other tyre manufacturers, MRF pays little attention to
incentivizing the dealers. This is reflected in the low margins it offers, and the complete
absence of dealer incentives such as compliments, free trips, cash rewards, discounts, etc.
Yet, dealers are motivated to stock MRF tyres simply because they have high brand-recall
and so the customer demands it.
3.

THE C OMPETITORS:

3.1 Principal Competitors:

The Passenger Car Radial tyre segment is a


highly concentrated one. The top 4 players Passenger Car Tyre
together hold almost 77% of the market share.
Bridgestone is the clear leader in this Segment
segment, with a market share that is twice ffd8ffe000104a46494600010201
that of its nearest competitor, MRF. 00c800c80000ffe20c584943435f5
0524f46494c4500010100000c484 JK Tyres
Bridgestone India leads the pack with a c696e6f021000006d6e747252474 Bridgestone
market share of 31%. Its closest competitor, 22058595a2007ce0002000900060
0310000616373704d53465400000 Others
MRF, is far behind with a market share of
18%. JK Tyres follows close at the heels of 0004945432073524742000000000
MRF with a market share of 17%, while 0000000000000000000f6d600010
Apollo tyres has a market share of 11%. 0000000d32d48502020000000000
0000000000000000000000000000
0000000000000000000000000000
3.2 Salient strengths and 0000000000000000000000000000
weaknesses: 0116370727400000150000000336
3.2.1 Bridgestone India 4657363000001840000006c77747
074000001f000000014626b70740
International Quality and 0000204000000147258595a00000
pedigree:
World over, the Bridgestone brand is synonymous 218000000146758595a0000022c0
with top quality and F1 class
00000146258595a0000024000000
performance. This brand image seems to have percolated down to its Indian subsidiary
too. 014646d6e6400000254000000706
46d6464000002c40000008876756
Channel 5640000034c00000086766965770
reach 00003d4000000246c756d6900000
With over 3000 distributors and dealers, Bridgestone India has one of the largest reach
across the country. A Bridgestone dealer is never 3f8000000146d6561730000040c0
far away from you, no matter where you
are. 0000024746563680000043000000
00c725452430000043c0000080c6
The F1 75452430000043c0000080c62545
association: 2430000043c0000080c746578740
The global brand awareness that Bridgestone Corporation’s collaboration with F1 has
0000000436f70797269676874202
contributed and its recognition as a leader in the global tyre industry has helped its Indian
863292031393938204865776c657
arm, BSID, position itself as a premium tyre manufacturer in the Indian market.
4742d5061636b61726420436f6d7
0616e79000064657363000000000
Bridgestone being one of the big five players in the global tyre industry,
0000012735247422049454336313
Financial
generates 936362d322e31000000000000000 an
muscle:
annual tyre production equivalent tothe total demand of the Indian market.
0000000127352474220494543363
13936362d322e310000000000000 27 |Page
0000000000000000000000000000
0000000000000MRF
Niche
player:
One of its major weaknesses id that Bridgestone India has restricted itself almost entirely
to the passenger car radial tyre segment. Even though Bridgestone is the undisputed leader
in this segment with a market share of over 30%, the passenger car segment accounts for a
meager 21% of the total tyre market in India. There is a huge untapped tyre market outside
this segment, especially in the Heavy Commercial Vehicles segment.

3.2.2 MRF

Brand recognition and brand


recall:
MRF with its aggressive marketing campaigns is has established itself the top brand in
terms of brand-recognition and recall. A study suggests that 9 out of every 10 tyre
customer across all segments of the tyre market, are aware of the MRF brand.

Complete market
coverage:
MRF with its portfolio of tyres for the complete automobile market, has made its presence
felt in all segments of the tyre market. While it is the leader in 2 wheeler and Light
Commercial Vehicle tyre markets, it comes a close second in the Heavy Commercial
Vehicle and Passenger Car tyre markets.

Strong
exports:
Exports account for around 12% of the gross sales in MRF. The company exports to over
65 countries worldwide

Dealer
relations:
MRF almost exclusively concentrates on brand awareness exercises, such as
advertisements and endorsements. It believes in making the customer demand its products
through brand-awareness and brand-recall. Therefore, compared to other tyre
manufacturers, MRF pays little attention to incentivizing the dealers. Yet, dealers are
motivated to stock MRF tyres simply because they have high brand-recall and so the
customer demands it.

Late entrant to the Radial tyre


market:
MRF was a late entrant into the radial tyre market. Bridgestone capitalized on its first-
mover advantage in the radial tyre segment, to capture a 31% market share. MRF has
been working hard to catch up, by aggressively developing its radial tyre technology. As a
result, today it holds 18% of the radial car tyre market share.
3.3 Basis of competition:

Being a homogenous product, there is not much difference in products offered by competing tyre
manufacturers. However, companies do try to differentiate themselves by outdoing one another in
some Points of Parity, such as quality, safety, tread design, economy, etc.

Some important parameters that consumers look out for, and that form a basis for differentiation
between tyre companies are:

1) High performance tyres


(sports)
Both MRF and Bridgestone offer high performance tyres that are meant for sports and other
high endurance activities.

2) Comfort tyres
(touring)
Touring tyres offer the twin advantage of endurance with superior ride comfort. These
class of tyres are a favorite amongst long distance car drivers such as business travelers.

3)
Mileage
One of the biggest value propositions of radial tyres is the improved mileage that it brings
with it. Mileage is the top priority for the Indian middle class buyer.

4) Price
Tyre prices play a much smaller role in the passenger car tyre industry, compared to tyre
features. Consumers are more concerned about the attributes of the tyre (quality, durability,
etc) than its price.

5) Wear
life The wear life of a tyre determines the life if the tyre. The more durable a tyre, the higher
will be its wear life.

6) Grip
Given the high seasonal differences in India, consumers typically look for tyres that suit
their local climate. Thus, while consumers in Rajasthan look for tyres that can endure high
temperatures; consumers down south prefer tyres that can grip the road even in the worst of
monsoon seasons.

7) Cornering and
braking
Cornering and braking refers to the way a tyre handles the extreme shear and frictional
forces it experiences when the vehicle cuts corners or brakes at high speeds. Superior
braking and cornering performance is always desired by sports and highway drivers.
4.

IMPORTANT C OLLABORATOR
S:
4.1Upstream Collaborators:

4.1.1 Bridgestone India

Bridgestone India is the most preferred Tyre manufacturer to most of the car OEMs in
India. This is clear from the formidable list of OEMs that source their tyres from MRF. In
fact, some OEMs like Skoda source their tyres exclusively from Bridgestone, and no
other tyre manufacturer.

Automobile OEMs who source their tyres from Bridgestone India are:
1) Toyota 2) Hyundai 3) Skoda (exclusive customer. 100% Bridgestone
tyres) 4) Mercedes 5) BMW 6) Genral Motors 7) Ford

4.1.2 MRF India

When compared to Bridgestone, MRF has a shorter list of tie-ups with OEMs in the car
segment. But it more than makes up for this shortage by supplying to almost every kind
of Automobile OEMs, be it two-wheelers, cars, buses, trucks, tractors, or OTR (Off The
Road) vehicles.

Automobile OEMs who source their tyres from MRF India are:

8) Maruti 9) Mahindra
&Mahindra 10) TATA
motors 11) Gneral Motors
4.2Collaborator Incentives:

Automobile OEMs tie-up with well-established tyre manufacturers for three major reasons:

4.2.1 Assured
supply
Automobile OEMs have huge production schedules. They required very large amounts of
inputs, including tyres. They therefore look for large tyre manufacturers such as MRF or
Bridgestone, who can supply them large quantities with any break in supply schedules.

4.2.2 LargeAssured
reputed tyre manufacturers such as MRF and Bridgestone
Qualityadopt very
stringentquality assurance measures.One of themajor parameters that
OEMsuse
todecidetheirtyre suppliersisthequalityofthetyrestheyproduce.Bridgest
one is a clearleader inthis parameter.

4.2.3 Given
Just the
In largeproductionvolumes,automobileOEMsdonotholdinventori
Time (JIT)
supplies
esfortoolong.They prefertyre manufacturerswho can supplythemtyres i
n realtime,
i.e.as and when theneed arises.This is possibleonly for largetyremanuf
acturers who incorporate JIT methods in their supply logistics.
5. THE C ONTEXT
‐ TRENDS SHAPING THE TYRE INDUSTRY
Being a raw-material intensive and a derived-demand product, tyre sales are highly dependent
on external factors that lie outside the purview of the manufacturers. A number of raw materials
go into the making of a tyre, the prices of which affect the price of the tyre. Similarly, since
tyres complement Automobiles, sales figures of Automobile manufacturers have a direct
bearing on tyre sales. These, and many other factors decide the price, quantity and frequency of
tyres demanded and supplied in the market.

5.1Economic Environment:

5.1.1 Unresolved Tax


issues:
The issue of inverted tax structure, where the import duty on natural rubber is as high as
20% but import duty on finished tyres is as low as 10% still remains unaddressed. Other
taxation issues have also been denting the competitiveness of Indian tyres.

5.1.2 Increasing costs of Raw


Materials:
The tyre industry is highly raw material intensive. Any change in the prices of raw
materials affects the profitability of tyre companies.

Raw materials primarily comprise of natural rubber, crude and steel based materials
which have historically experienced volatility in prices. In the last few months, price of
domestic natural rubber has increased by almost 40%. Given the fact that raw materials
constitute around 70% of the cost of production, combined with the manufacturers
"inability to pass on the increased cost to their customers due to intense competition”, rise
in prices of these materials have had a huge impact on profitability.

5.1.3 Import
restrictions
The Indian tyre industry is suffering intense competition from low priced tyres from China
and other South East Asian countries. Despite being of a better quality, Indian
manufactured tyres loose ground when it comes to pricing. Moreover, slowing automotive
demand from developed countries has made India a lucrative market for cheap tyres, thus
resulting in increased dumping of cheap tyres from China.

Although the Government has imposed a restraint on the import of used tyres into India,
occasionally there are reports of import of such tyres in a clandestine manner, sometimes
as new tyre at low value, since there is no restriction on import of new tyres or as tyres
under the "others" category.
5.1.4 Road and support
infrastructure
While poor road conditions have a positive impact on replacement demand, by
reducing the life of the tyre, improved roads can act as a catalyst to increased
purchase and use of personal vehicles, thus driving up the demand for tyres.

Also, poor road and support infrastructure act as a barrier to radialisation in the
commercial vehicle segment.

5.1.5 Sources of
Demand:
1) Industrial and freight
activity
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. In
addition, the price of a truck tyre is significantly higher than that of a passenger car
tyre (roughly 10 times). Thus the demand multiple emanating from the commercial
vehicle segment is highest in value terms.

2) Personal purchasing
power
As the economy booms and disposable incomes in the hands of the Indian middle-
class burgeon, the sale of passenger cars has been witnessing an upward swing over
the past decade. Since tyre sales are directly linked to car sales, both through OEMs
and the replacement market, the tyre industry has witnessed a corresponding increase
in its sales figures.

3) Automobile
sales
The demand from the OEM segment is a derived one and directly correlated to the
level of automotive production. The recent Slowdown in automotive industry and
global economic in general negatively impacted the Indian tyre industry in 2009. The
industry growth was only 2.19% during first nine months of FY09, compared to
7.38% growth experienced during the same period last year

4)
Exports
Due to the slowdown in the domestic market brought about by the recession, most
India tyre manufacturers have taken to exports to reduce inventory build-ups. Indian
companies have currently entered into sourcing agreements (for tyres) with
neighbouring countries like Sri Lanka and China.
There is a trend of increasing exports of bus and truck tyres (crossply variety) from
India to developing countries. This is because of the fact that developing countries are
unable to source them from developed countries as these are no more produced there.

The product focus of tyre exports from India has been Traditional Truck Tyres.
Globally this segment of tyre export is shrinking due to greater acceptance of radial
tyres. Moving towards radialization will be vital if tyre producers want to protect their
share in international markets.

ffd8ffe000104a46494600010201005d005d0000ffe20c584943435f50524f46494c4500010100000c484
c696e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d53465400000
00049454320735247420000000000000000000000000000f6d6000100000000d32d4850202000000000
00000000000000000000000000000000000000000000000000000000000000000000000000000000000
0001163707274000001500000003364657363000001840000006c77747074000001f000000014626b70
7400000204000000147258595a00000218000000146758595a0000022c000000146258595a000002400
0000014646d6e640000025400000070646d6464000002c400000088767565640000034c000000867669
6577000003d4000000246c756d69000003f8000000146d6561730000040c00000024746563680000043
00000000c725452430000043c0000080c675452430000043c0000080c625452430000043c0000080c746
5787400000000436f70797269676874202863292031393938204865776c6574742d5061636b61726420
436f6d70616e790000646573630000000000000012735247422049454336313936362d322e310000000
00000000000000012735247422049454336313936362d322e3100000000000000000000000000000000
0000000000000000000000
5.2Technological Environment:

5.2.1 Indigenous development of radial


technology
The runaway success of Bridgestone India in the passenger radial car market was mainly
due to the fact that a decade ago, none of the Indian tyre companies had good radial
technology know-how. But all that seems to be changing at scorching pace now. Major
Indian players such as MRF, JK tyres and Apollo tyres are pumping in a lot of money in
R&D to upgrade their technologies indigenously. MRF has already succeeded in
capturing a market share of 18% in the radial car tyre market.

5.2.2 Market entry by international


players
The market entry of Bridgestone is a classic example of what a foreign firm’s entry can
do to the Indian tyre market. Before Bridgestone entered the Indian market, there was
almost no usage of radial tyres in India. Besides, customers had to put up with sub-
standard tyres since in the face of no competition, Indian tyre manufacturers were slow in
developing their technologies. Al that changed when Bridgestone entered the market.
Quality and brand value suddenly became the new buzzwords, and Indian companies
finally woke up to the huge technological gap between the International and domestic
players. Passenger car OEMs embraced radial technology and the car tyre maeket was
almost completely radialzed.

5.2.3 Improved Capacity-utilization


techniques
In the face of increasing input prices, and competition from international players such as
Michellin and Bridgestone, Indian tyre companies are desperately searching for ways to
cut costs and improve their production efficiencies. This has resulted in adoption of
improved capacity-utilization techniques across all major Indian tyre manufacturers.

5.3SocioCultural Environment

5.3.1 Explosion in the number of nuclear


families
As the joint-family system crumbles and the number of nuclear families explode, more
small families seem to be demanding a two/four wheeler for themselves. This has directly
resulted in higher sales of tyres in the past decade.

5.3.2 Higher car density per


family
The number of upper-class and upper-middle class families with more than one car per
family seems to be increasing exponentially. This is especially true in cities where
35 |Page
working couples find it difficult to survive without more than one car for transportation.
With higher disposable incomes, these families are finally able to afford this need.

5.3.3 Shifting away from Savings, to EMI


culture
Another notable trend that seems to be fuelling car sales (and therefore tryre sales) is the
shift in the middle-class consumers saving habits. The Indian middle-class family has long
been known for its savings frenzy. But with a younger workforce, higher disposable
incomes, lower unemployment and the influence of globalization, the average Indian
middle-class family is slowly warming up to the idea of EMI and buying on credit. This
has helped in furthering the sales of passenger cars significantly.
EGMENNTATIOON,TA ARGETIING ANND P
A
OSSITIONNING NNSTP ANAAL
YSIS

1. BASSIS FOR SS EGMENNTATIONN VEHICLLE


TYPE:
In the tyyre industry, there is ve ry little direcct interactionn between thhe company and
the cusstomer. Tyree compan ies sell most ly to dealers in the replaccement mark et and
to OEEMs.
As a ressult, market segmentatioon for the tyree industry is based more on the type of
vehicle s erved, ratherr than on the individuaal customer.

ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f46494c450001010000
0c484c696e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d
5346540000000049454320735247420000000000000000000000000000f6d6000100000000d32
d4850202000000000000000000000000000000000000000000000000000000000000000000000
000000000000000000000000001163707274000001500000003364657363000001840000006c7
7747074000001f000000014626b707400000204000000147258595a0000021800000014675859
5a0000022c000000146258595a0000024000000014646d6e640000025400000070646d6464000
ffd8ffe000104a4649460001020100c800c800
002c400000088767565640000034c0000008676696577000003d4000000246c756d69000003f80
00ffe20c584943435f50524f46494c450001010
00000146d6561730000040c0000002474656368000004300000000c725452430000043c000008
0000c484c696e6f021000006d6e74725247422
0c675452430000043c0000080c625452430000043c0000080c7465787400000000436f70797269
058595a2007ce000200090006003100006163
73704d5346540000000049454320735247420
676874202863292031393938204865776c6574742d5061636b61726420436f6d70616e7900006
000000000000000000000000000f6d6000100
46573630000000000000012735247422049454336313936362d322e3100000000000000000000
000000d32d485020200000000000000000000
0012735247422049454336313936362d322e31000000000000000000000000000000000000000
0000000000000000000000000000000000000
0000000000000000000000000000000000000
000000000000000 0116370727400000150000000336465736300
0001840000006c77747074000001f00000001
4626b707400000204000000147258595a0000
0218000000146758595a0000022c000000146
258595a0000024000000014646d6e64000002
5400000070646d6464000002c400000088767
565640000034c0000008676696577000003d4
000000246c756d69000003f8000000146d656
1730000040c00000024746563680000043000
00000c725452430000043c0000080c6754524
30000043c0000080c625452430000043c0000
080c7465787400000000436f7079726967687
4202863292031393938204865776c6574742d
5061636b61726420436f6d70616e790000646
5736300000000000000127352474220494543
36313936362d322e310000000000000000000
00012735247422049454336313936362d322e
3100000000000000000000000000000000000
0000000000000000000MHCV: Meedium
heavy commmercial vehicle, HCV: Heavy
Commmercial Vehicle mmercial Vehiclee,
OTR: Off The RRoad
e, LCV:vehicle
Light
Co
2. SELECTING THE T ARGET SEGMENT:

Once the market has been divided into segments, Tyre manufacturers need to decide the
segments they are going to service. This requires a deep analysis of each segment and
matching the manufacturer’s capabilities (finances, core-competency, brand image, labor,
etc) with the demands of these segment(s).

2.1Bridgestone: The Market Specialization


Approach
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Bridgestone India currently concentrates exclusively on the Passenger Car Radial Tyre
segment. Within this segment, it offers a wide range of tyres to suit the needs of the
entire segment of car tyre buyers. Bridgestone is the Market leader in this segment, with
a market share of over 30%.
One major reason why Bridgesotne has stuck to the Passenger Car segment is because
it offers only Radial tyres. While the Passenger Car segment is 98% Radialised, other
segments in the tyre industry are yet to
Brand Strategy Analysis
2.2MRF: The Complete Market Coverage Approach
Customers have come to associate Bridgestone tyres with the exacting performance
standards required in F1 racing.
ffd8ffe000104a46494600010201005700570000ffe20c584943435f50524f
3.1.2 MRF – Tyres with
46494c4500010100000c484c696e6f021000006d6e74725247422058595a
Muscle
2007ce00020009000600310000616373704d53465400000000494543207
35247420000000000000000000000000000f6d6000100000000d32d4850
The MRF mascot, the MRF muscleman, clearly states the category membership MRF
20200000000000000000000000000000000000000000000000000000000
subscribes to. MRF communicates to the customer its superior endurance and strength.
00000000000000000000000000000000000000011637072740000015000
The company sponsors a number of sports such as cricket and rally racing, to position its
00003364657363000001840000006c77747074000001f000000014626b70
tyres as high endurance and sporty. Its slogan “Tyres we race, are the tyres you buy”
7400000204000000147258595a00000218000000146758595a0000022c0
stands testimony to their category membership.
00000146258595a0000024000000014646d6e640000025400000070646d
6464000002c400000088767565640000034c0000008676696577000003d
4000000246c756d69000003f8000000146d6561730000040c00000024746
3.2Points of Parity (POP):
56368000004300000000c725452430000043c0000080c67545243000004
3c0000080c625452430000043c0000080c7465787400000000436f707972
POP refers to associations that are not necessarily unique to the brand, but may in fact be
69676874202863292031393938204865776c6574742d5061636b6172642
shared by other brands. For a product to achieve POP on a particular attribute, a sufficient
0436f6d70616e7900006465736300000000000000127352474220494543
number of customers must think that the brand is “good enough” on that dimension.
36313936362d322e3100000000000000000000001273524742204945433
6313936362d322e31000000000000000000000000000000000000000000
Put simply, POPs are the minimum parameters a product must possess to be considered a good
000000000000
enough to compete within its membership category.
MRF holds a diversified portfolio of products that span across the entire tyre market. It
manufactures tyres for all segments of the tyre market including Passenger Vehicles,
Commercial Vehicles, Farm Vehicles ad Off-The-Road and Industrial Vehicles. This
Some important
complete marketparameters
coverage that consumers
of its productslook
hasfor, in every
made MRF tyre brand,
the and which
undisputed therefore
leader in the
overall Indian tyre industry.
form the basis of POP in the tyre industry are: 1) Quality: Material quality of the tyre must be

3. DIFFERENTIATION AND P
very good. 2) Safety: The tyre must meet national/international safety standards under high
OSITIONING STRATEGIES:
stress conditions. 3) Durability: The tyre must survive wear and tear for a decent period of
Being a homogenous product, there is not much difference in products offered by competing tyre
life. 4) Mileage:
manufacturers. The tyre
However, must offer
companies improved
do try mileage (especially
to differentiate themselves true for Radialone
by outdoing tyres). 5) in
another
some Points of Parity, such as quality, safety, tread design, economy, etc.
Grip: The tyre grips the road firmly under all weather conditions. 6) Cornering and braking:

The tyre must perform well while cutting corners and braking at high speeds. 7) Ride comfort:
3.1Establishing Category
The tyre must offer a smooth and quite riding experience.
Membership
Category Membership refers to the set of products that a brand competes with. It defines the
market that the brand is in.

3.1.1 Bridgestone – High Performance with Value


for Money
Bridgestone communicates its category membership as a top quality, high performance
tyre, with an international pedigree. In order to ride home this message, it has associated
itself with F1 racing events and widely publicizes its success on the F1 racetrack.
39 |Page
3.3 Points of Difference
(POD):
PODs attributes that consumers strongly associate with a brand, positively evaluate it, and
believe that they could not find it to the same extent in other competing brands.

Simply put, PODs are those attributes that make a product stand out from the competition. It
is the winning proposition.

Though tyres are a highly homogenous products, and differentiation is very difficult, tyre
manufacturers have come up with innovative ways to demonstrate their superiority in certain
parameters such as quality, endurance, value for money, and additional services.

3.3.1 Bridgestone – Quality and Value for


Money
Bridgestone prides itself for manufacturing some of the highest quality tyres on the
globe. Customers perceive the brand to be associated with F1 quality and performance.

1) Value for Money:


Bridgestone customers perceive their tyres as a good buy, despite their premium
pricing. This is because Bridgestone is known for high quality, long lasting tyres
that give the customers value for their money in the long run.

2) Perfectly balanced wheels:


Another major benefit that customers associate with Bridgestone tyres is the
perfectly balanced tyres that they get fitted on purchase. Bridgestone makes this
possible by making it mandatory that its dealers possess computerized wheel
balancing equipment. Every customer who walks out of a dealer store with a
Bridgestone tyre is thus assured of an additional service: perfectly balanced wheels.

3) International quality and high performance:


Most Bridgestone customers are aware of the international quality and the
impeccable pedigree that Bridgestone enjoys worldwide. International Quality and
high performance are the major reasons why most automobile OEMs prefer to
partner with Bridgestone.

3.3.2 MRF – High endurance


tyres
MRF has for log concentrated on the high performance its tyres offer in trying conditions.
To further this image, it has partnered with many sports events and created a mascot that
reflects the toughness it claims in it tyres: the MRF muscleman.
1) High endurance
tyres:
Tyre consumers, especially heavy truck and bus owners, consider MRF tyres to be one
the toughest in the market. This explains why MRF is amongst the top market leaders
and in the heavy commercial vehicles category (second only to Apollo tyres).

2) High performance
tyres:
MRF is the clear leader in the Two Wheeler tyre market. This is because of its image
as a high endurance and high performance tyre, in the minds of Two Wheeler owners.
Brand recognition and recall has also played an important role in its emergence as the
market leader.

3.4Value proposition:

Value propositions are a set of benefits that companies offer to satisfy customer needs. It
answers the customer’s question, “what is in it for me?”

3.4.1 Bridgestone – Quality and Value for


money:
Bridgestone’s main value proposition is its international quality and value for money.
Every Bridgestone customer is assured of a tyre that is of international standards and will
give him trouble-free service for a long time, thus giving him value for his money.

3.4.2 MRF – Endurance


guaranteed:
MRF prides itself in making tyres that go into some of the most trying conditions on
Indian roads: onto Heavy Vehicles on rough Indian roads. Consequently, MRF offers a
compelling value proposition to heavy vehicle owners as well as passenger car and two
ffd8ffe000104a46494600010201004600460000ffe2
wheeler owners: Quality tyres that endure in the worst of conditions. It drives home this
0c584943435f50524f46494c4500010100000c484c6
macho message through its mascot, the MRF muscleman.
96e6f021000006d6e74725247422058595a2007ce00
020009000600310000616373704d53465400000000
3.5Positioning statements:
494543207352474200000000000000000000000000
00f6d6000100000000d32d485020200000000000000
3.5.1 Bridgestone - passion for
000000000000000000000000000000000000000000
excellence: 000000000000000000000000000000000000000116
370727400000150000000336465736300000184000
0006c77747074000001f000000014626b7074000002
04000000147258595a00000218000000146758595a
0000022c000000146258595a000002400000001464
6d6e640000025400000070646d6464000002c40000
0088767565640000034c0000008676696577000003
d4000000246c756d69000003f8000000146d6561730
000040c0000002474656368000004300000000c725
452430000043c0000080c675452430000043c00000
80c625452430000043c0000080c746578740000000
0436f70797269676874202863292031393938204865
776c6574742d5061636b61726420436f6d70616e790
000646573630000000000000012735247422049454
336313936362d322e3100000000000000000000001
2735247422049454336313936362d322e310000000
000000000000000000000000000000000000000000
00000
Brand Strategy Analysis
3.5.2
MRF – Tyres with muscle:
ANALYZING THE MARKETING
MIX
THE4P ANALYSI
S

ffd8ffe000104a46494600010201004200420000ffe20c58

1. THE P 4943435f50524f46494c4500010100000c484c696e6f0210
RODUCT:
00006d6e74725247422058595a2007ce000200090006003
10000616373704d5346540000000049454320735247420
000000000000000000000000000f6d6000100000000d32d
The basic definition of a product is anything that can be offered to a market to satisfy a want or
need. 4850202000000000000000000000000000000000000000
0000000000000000000000000000000000000000000000
Tyre companies0000000000116370727400000150000000336465736300
in India have been fulfilling this need for over half a century now, through tyres
that endure on 0001840000006c77747074000001f000000014626b70740
rough Indian roads. The entry of Multinationals like Bridgestone and Goodyear has
ffd8ffe000104a464946000102010
added two more0000204000000147258595a00000218000000146758595
flavors to this mix: 0c800c80000ffe20c584943435f50
Quality and ride comfort. Today, Indian tyre manufacturers are
racing against a0000022c000000146258595a0000024000000014646d6e
each other to introduce tyres that assure impeccable quality, endurance and ride
524f46494c4500010100000c484c6
comfort. 640000025400000070646d6464000002c40000008876756
96e6f021000006d6e74725247422
5640000034c0000008676696577000003d4000000246c75
058595a2007ce000200090006003
6d69000003f8000000146d6561730000040c00000024746
10000616373704d5346540000000
1.1Product56368000004300000000c725452430000043c0000080c67
levels –The customer value
0494543207352474200000000000
hierarchy: 5452430000043c0000080c625452430000043c0000080c7
While devising
00000000000000000f6d60001000
465787400000000436f7079726967687420286329203139
market offerings, marketers address five product levels:
00000d32d4850202000000000000
3938204865776c6574742d5061636b61726420436f6d706
0000000000000000000000000000
16e7900006465736300000000000000127352474220494
54336313936362d322e310000000000000000000000127
0000000000000000000000000000
35247422049454336313936362d322e310000000000000
0000000000000000000000000001
00000000000000000000000000000000000000000
1637072740000015000000033646
ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f
57363000001840000006c7774707
46494c4500010100000c484c696e6f021000006d6e74725247422058595a2
4000001f000000014626b7074000
007ce00020009000600310000616373704d5346540000000049454320735
247420000000000000000000000000000f6d6000100000000d32d4850202
00204000000147258595a0000021 Expected
000000000000000000000000000000000000000000000000000000000000
8000000146758595a0000022c000
000000000000000000000000000000000001163707274000001500000003
Product
000146258595a000002400000001 Augment
364657363000001840000006c77747074000001f000000014626b70740000
4646d6e640000025400000070646
0204000000147258595a00000218000000146758595a0000022c00000014ed
d6464000002c4000000887675656
6258595a0000024000000014646d6e640000025400000070646d64640000Product
40000034c0000008676696577000
02c400000088767565640000034c0000008676696577000003d400000024
Potential Product
6c756d69000003f8000000146d6561730000040c000000247465636800000
003d4000000246c756d69000003f
4300000000c725452430000043c0000080c675452430000043c0000080c62
8000000146d6561730000040c000
5452430000043c0000080c7465787400000000436f7079726967687420286
0002474656368000004300000000
3292031393938204865776c6574742d5061636b61726420436f6d70616e79
c725452430000043c0000080c675
0000646573630000000000000012735247422049454336313936362d322e
452430000043c0000080c6254524
31000000000000000000000012735247422049454336313936362d322e31
30000043c0000080c74657874000
000000000000000000000000000000000000000000000000000000 Basic
Product 00000436f7079726967687420286
3292031393938204865776c65747
42d5061636b61726420436f6d706
16e7900006465736300000000000
0001273524742204945433631393
6362d322e3100000000000000000
0000012735247422049454336313
936362d322e31000000000000000
0000000000000000000000000000
00000000000 CORE BENEFIT
1.1.1 Core
Benefit:
This is the service or benefit the customer is customer is really buying. In the tyre
industry, the core benefit that a customer is looking for is a tyre that his vehicle can run
on.

1.1.2 The Basic


product:
The basic product that all tyre manufacturers offer, is a tyre that fits the customer’s
vehicle

1.1.3 The Expected


product:

The expected product defines the basic features that a buyer assumes in the product

offering. In a way, this is the POP for the product in its membership category. In the

tyre industry, the basic product would be a tyre that meets the following criteria: 1)

Quality: Material quality of the tyre must be very good. 2) Safety: The tyre must

meet national/international safety standards under high stress conditions. 3)

Durability: The tyre must survive wear and tear for a decent period of life. 4)

Mileage: The tyre must offer improved mileage (especially true for Radial tyres). 5)

Grip: The tyre grips the road firmly under all weather conditions. 6) Cornering and

braking: The tyre must perform well while cutting corners and braking at high

speeds. 7) Ride comfort: The tyre must offer a smooth and quite riding experience.

1.1.4 The Augmented


product:
Augmented products exceed customer expectations. They offer a value proposition that
the customer may not have thought about, or was not expecting.

The Augmented product stage is where the competition begins in the tyre industry. This
is where tyre manufacturers try to differentiate themselves from the competition
1) Bridgestone: Quality, Comfort, Value for
Money
Bridgestone differentiates itself from the competition, by offering tyres that exceed
the customer’s quality requirements, ride comfort and value for money. Bridgestone
ensures that its tires meet international quality standards, last much longer (thus
giving more value for money), and performs smoothly and quietly (ride comfort).
These are the three pillars that Bridgestone differentiates itself on.

2) MRF: Quality,
Endurance
MRF differentiates itself from the competition, on its two pillars of Quality and high
endurance. Given the fact that a major portion of its sales come from Heavy truck and
bus categories, it stresses on the durability of its tyres on rough Indian roads.
2. THE P LACE:

Once the product has been decided upon and the market segmented, targeted and the product
positioned, it is time to decide how and where the marketer can deliver the value (product) to the
customer. This is done through marketing channels that make the product available for consumption
to the customer.

2.1Push and Pull strategies in channel


marketing:
In a Push strategy, the manufacturer uses his sales force, trade promotion, money or other
means to induce intermediaries to carry promote and sell its products to end users.

Ina Pull strategy, the manufacturer uses advertising, promotion and other forms of
communication to persuade the customer to demand the product from intermediaries, thus
inducing the intermediaries to order it.
1) Bridgestone: Pursuing a Push
strategy
Bridgestone pursues a strong push strategy in its channel marketing. The advertising layout
for Bridgestone India is minimal. Bridgestone spends very little on advertising and
promotion. Instead, they concentrate on incentivizing the dealer to stock, promote and sell
their products. As a result, Bridgestone regularly introduces sell-in schemes (promotional
schemes for dealers), gold vouchers, international holiday vouchers, OE camps, etc.

2) MRF: Masters at Pull


strategy
MRF follows exactly the opposite strategy. MRF has mastered the art of Pull strategy. It
pioneered the practice of heavy advertising and promotion in the tyre industry. So much so,
that today, MRF commands top-of-mind recall and top brand recognition amongst all tyre
manufacturers in India. There is hardly any tyre customer who hasn’t heard of the MRF
brand. MRF achieved this remarkable feat by adopting a multi-pronged marketing strategy
that involved endorsements by sports celebrities like Sachin Tendulkar, Brian Lara and
Steve Waugh, promoting popular sports like cricket and car rally races, and even
introducing its own mascot: the MRF muscleman, that reflected the tough image it
projected for its tyres.

While MRF has pulled out all stops in advertising and promoting its products, it gives very
little attention to incentivizing its channel partners. This is clear from the very low margins
it offers its dealers and the complete absence of other dealer incentives. Yet, dealers look
forward to stock MRF tyres because customers demand it.
Brand Strategy Analysis
2.2 Channel Design:
2) Indirect
channels:
ffd8ffe000104a46494600010201006b006b0000ffe20c5849
To decideIndirect channelsdesign,
on the channel consistthe
of marketer
one or more
mustintermediaries between the manufacturer and
43435f50524f46494c4500010100000c484c696e6f02100000
first scan the
thefinal customer.
target customer base. Different types
6d6e74725247422058595a2007ce000200090006003100006
of customer segments may require different types
ffd8ffe000104a4649460001
The Replacement market segment of the
of channels.
16373704d534654000000004945432073524742000000000
tyre industry caters to individual customers.
0000000000000000000f6d6000100000000d32d4850202000
It therefore requires 020100c800c80000ffe20c584
wide reach and deep market penetration. The distribution channel
000000000000000000000000000000000000000000000000
for replacement
The following figure shows 943435f50524f46494c45000
market comprisesofofcar
the break-up the manufacturer, warehouses/ C&F (carry &
000000000000000000000000000000000000000000001163
forward) agents, and10100000c484c696e6f02100
the dealers.
tyre sales according to customer segments: The Tyre is finally sold to the customer by the dealer.
707274000001500000003364657363000001840000006c777
0006d6e7472524742205859
47074000001f000000014626b707400000204000000147258
As the figure shows, there5a2007ce000200090006003
are three main595a00000218000000146758595a0000022c0000001462585
customer segments in the car tyre market: 95a0000024000000014646d6e640000025400000070646d64
10000616373704d53465400
64000002c400000088767565640000034c000000867669657
00000049454320735247420
1) Original Equipment Manufacturers (OEMs) 2)7000003d4000000246c756d69000003f8000000146d656173
The Replacement Market
00000000000000000000000
(replacement of old, worn CHANNEL 0000040c0000002474656368000004300000000c725452430
out or defective tyres) 3) Exports
INDIRECT 0000f6d6000100000000d32d (FOR THE
000043c0000080c675452430000043c0000080c6254524300
48502020000000000000000
00043c0000080c7465787400000000436f707972696768742
TYRE REPLACEMENT SEGMENT)
00000000000000000000000
02863292031393938204865776c6574742d5061636b617264
20436f6d70616e79000064657363000000000000001273524
00000000000000000000000
2.2.1 Direct and Indirect 7422049454336313936362d322e3100000000000000000000
channels:
00000000000000000000000
0012735247422049454336313936362d322e3100000000000
1) Direct 00000000001163707274000 0000000000000000000000000000000000000000000
channels: 00150000000336465736300
0001840000006c777470740
Direct channels consist of a marketer selling directly to the final customer.
00001f000000014626b70740
Of the three types 0000204000000147258595a
of customer segments in the Passenger Car Tyre market, two
00000218000000146758595
customer segments call for a direct channel:
a0000022c00000014625859
a) 5a0000024000000014646d6
OEMs : the huge quantities required and the Just In Time logistics employed, OEMs
Given
e640000025400000070646d
source their tyre supplies directly from manufacturers. Tyre manufacturers
6464000002c400000088767
therefore most set up exclusive distribution channels to service these OEMs.
565640000034c0000008676
696577000003d4000000246
b) c756d69000003f8000000146
Exports: d6561730000040c00000024
To minimize logistical complexities and supply delays, Tyre exports are handled
directly by the 74656368000004300000000
manufacturers. Tyre manufacturers set up direct distribution
channels that supply tires directly to export destinations
c725452430000043c0000080
c675452430000043c0000080
Note: tyre manufacturers sometimes employ Carry & Forward agents to transport
c625452430000043c0000080
their tyres from the factory to OEM sites or export destinations. However this
c7465787400000000436f707
varies from company to company.
97269676874202863292031
393938204865776c6574742
d5061636b61726420436f6d7
0616e790000646573630000
00000000001273524742204
9454336313936362d322e31
00000000000000000000001
27352474220494543363139
36362d322e3100000000000
00000000000000000000000
00000000000000000000
ffd8ffe000104a
4649460001020
100c800c80000f
fe20c584943435
f50524f46494c4
500010100000c
484c696e6f0210
00006d6e74725
2.2.2 Single and
247422058595a
multiple channels:
2007ce0002000
Most organizations today employ multichannel marketing i.e. selling to different consumer
9000600310000
segments through different channels. The tyre industry too follows this method. There are three
616373704d534
different channels dedicated to handle the three different kinds of consumers:
6540000000049
4543207352474
2000000000000
ffd8ffe000104a464946000
OEMs 0000000000000
1020100c800c80000ffe20c5
Direct
000f6d60001000
84943435f50524f46494c45
Exports
00000d32d4850
00010100000c484c696e6f0
Direct
2020000000000
21000006d6e747252474220
Replacement
0000000000000
58595a2007ce00020009000
Indirect
600310000616373704d5346
0000000000000
54000000004945432073524
0000000000000
74200000000000000000000
0000000000000
00000000f6d600010000000
0000000000000
0d32d485020200000000000
0000000000000
00000000000000000000000
0000000116370
00000000000000000000000
7274000001500
00000000000000000000000
0000033646573
00000000000000011637072
6300000184000
74000001500000003364657
0006c77747074
363000001840000006c7774
000001f0000000
7074000001f000000014626
14626b7074000
b7074000002040000001472
0020400000014
58595a00000218000000146
7258595a00000
758595a0000022c00000014
2180000001467
6258595a000002400000001
58595a0000022
4646d6e6400000254000000
c000000146258
70646d6464000002c400000
088767565640000034c0000
595a000002400
008676696577000003d4000
0000014646d6e
000246c756d69000003f800
6400000254000
0000146d6561730000040c0
00070646d6464
00000247465636800000430
000002c400000
0000000c725452430000043
0887675656400
c0000080c67545243000004
00034c0000008
3c0000080c6254524300000
6766965770000
43c0000080c746578740000
03d4000000246
0000436f707972696768742
c756d69000003f
02863292031393938204865
8000000146d65
776c6574742d5061636b617
61730000040c0
26420436f6d70616e790000
0000024746563
64657363000000000000001
6800000430000
27352474220494543363139
0000c72545243
36362d322e3100000000000
0000043c00000
00000000000127352474220
80c6754524300
49454336313936362d322e3
00043c0000080
10000000000000000000000
00000000000000000000000
c625452430000
000000000 043c0000080c7
4657874000000
00436f70797269
6768742028632
9203139393820
4865776c65747
ffd8ffe000104a4
64946000102010
0c800c80000ffe20
c584943435f5052
4f46494c4500010
100000c484c696e
6f021000006d6e7
47252474220585
c) Exclusive dealers Vs Multi-brand Dealers: Though Bridgestone sells its
95a2007ce000200
tyres through both exclusive and multi-brand dealers, it gives very little attention to
09000600310000
building exclusive dealer strength. Instead, it only requires that Multi-brand dealers
616373704d5346
offer Bridgestone an 80% share in stocking space.
54000000004945
43207352474200
d) Mandatory Tyre changing equipment: One major dealer criterion that is
00000000000000
exclusive to Bridgestone is its insistence that all dealers must possess automatic tyre
000000000000f6d
changing and wheel balancing equipments. This severely restricts the number of
6000100000000d
dealers who can apply for Bridgestone’s dealership. But it also increases the overall
32d48502020000
buying experience of a Bridgestone customer.
00000000000000
00000000000000
ffd8ffe000104a46494600000000000000000
2)
2.2.3 MRF:
Channel 1020100c800c80000ffe20c5 00000000000000
length: a) 84943435f50524f46494c45 00000000000000
Credit history: The dealer should have a clean credit history with a good
Channel refers00010100000c484c696e6f0
lengthrecord. 00000000000000
to the number of channel intermediaries between the manufacturer
repayment
and the end user. In21000006d6e747252474220 00000001163707
the tyre industry, based on the target customer, the channel length
differs 58595a2007ce00020009000 27400000150000
b) as follows:
Experience: The dealer should
600310000616373704d5346 have relevant experience of a few years in
00033646573630
the field of stocking and selling tyres. 00001840000006
54000000004945432073524
74200000000000000000000 c7774707400000
c) Exclusive dealers Vs Multi-brand
00000000f6d600010000000 Dealers: Though MRF also sells its
1f000000014626b
tyres through both exclusive and multi-brand dealers, it gives a lot of attention to
0d32d485020200000000000
OEMs 0 (Direct) 70740000020400
Exports
setting exclusive 00000000000000000000000
showrooms for its tyres. It also mandates a very high stocking share
0000147258595a
0 (Direct) Replacement 2
from multi-brand00000000000000000000000
dealers. 00000218000000
level
00000000000000000000000 146758595a0000
00000000000000011637072
022c0000001462
74000001500000003364657
2.3Channel Management 58595a00000240
2.3.2 Training and motivating 363000001840000006c7774
channel00000014646d6e
practices:
members: 7074000001f000000014626
Once the manufacturer has selected a channel
b7074000002040000001472 64000002540000
system, it must select, train, motivate and
1) Training and
evaluate the individual intermediaries 0070646d646400
for each channel. This is a multi step process.
motivation: 58595a00000218000000146
758595a0000022c00000014 0002c400000088
Both Bridgestone and MRF undertake regular dealer trainings for their exclusive
76756564000003
6258595a000002400000001
dealers.
2.3.1 Selecting These trainings
channel include
4646d6e6400000254000000modules that teach the dealers how to identify
4c000000867669
customer needs and respond to them.6577000003d400
70646d6464000002c400000 While Bridgestone regularly introduces dealer
members:schemes, holiday
1) Bridgestone:
Bridgestone selects packages, gold vouchers,
088767565640000034c0000
channel partners a etc
0000246c756d69
after to motivate
careful its and
evaluation dealers, MRF focuses
analysis.
exclusively on brand
Bridgestone selects promotion at the
008676696577000003d4000
dealers based on the customer level.
000003f80000001
following criteria:
000246c756d69000003f800 46d65617300000
a) 0000146d6561730000040c0
Credit history: 40c00000024746
The dealer should have a clean credit history with a
2) goodChannel 00000247465636800000430
repayment record. 56368000004300
Power: 0000000c725452430000043 000000c7254524
Channel
b) c0000080c67545243000004
power refers
Experience: to thedealer
The kind of power Manufacturers
30000043c00000
should have hold over
relevant experience of channel partners.
a few years
It is the ability of3c0000080c6254524300000
the manufacturer
in the field of stocking and selling tyres.to alter the behavior
80c67545243000 of a channel member.
43c0000080c746578740000 0043c0000080c62
0000436f707972696768742
5452430000043c
02863292031393938204865
0000080c746578
776c6574742d5061636b617
26420436f6d70616e790000 7400000000436f7
64657363000000000000001 07972696768742
27352474220494543363139 02863292031393
36362d322e3100000000000 938204865776c6
00000000000127352474220 574742d5061636
49454336313936362d322e3 b61726420436f6d
10000000000000000000000 70616e79000064
00000000000000000000000 65736300000000
000000000 00000012735247
Bridgestone follows reward power with its dealers. The company offers additional
incentives such as discounts, free gifts, gold vouchers, holiday trips, etc and
encourages them to stock, promote and sell their tyres.

MRF on the other hand, pays very little attention to channel power. They focus
exclusively on a Pull strategy by heavily advertising its products and capturing topof-
mind recall and brand recognition amongst customers. This automatically results in
demand for its tyres from customers, which in turn incentivizes the dealer to stock
MRF tyres. In that way, we can say that MRF influences referent power over its
dealers. Dealers like to be associated with MRF because it is the most sought after
brand by consumers.

2.3.3 Efficient Consumer Response (ECR)


practices:
Many companies, including Bridgestone, have adopted ECR practices to streamline their
supply chain and logistics and also to cut overhead costs.

ECR requires close coordination between the manufacturer and the dealer in three areas:

1) Demand Side
management:
Demand side management deals with collaborative practices between the manufacturer
and its dealers to stimulate consumer demand by joint marketing and sales activities.
As a part of these activities, Bridgestone offers free sops to customers through its
dealer outlets such as:

a) Free Provogue T-shirts b) Free tyre and battery check-ups every 4-6 months for
Bridgestone customers c) 50% discount on alignment and balancing d) Free F1
racing trip tickets

All these are done at the dealer store, where the customer interaction happens.
Therefore the dealer’s cooperation is crucial.
2) Supply Side
management:
Supply Side Management deals with collaborative practices between manufacturer and
its dealers to optimize supply. Both Bridgestone and MRF practice joint logistics and
Supply Chain Management methods to ensure adequate stocking of its tyres at dealer
outlets. The manufacturers do this by closely working with dealers to track their shelf
spaces and replenish stocks on time.
3) Enablers and Integrators: Enabler and integrators are collaborative IT and process
improvement tools to support joint activities that reduce operational problems and allow
greater standardization. Though Bridgestone uses IT based SCM tools to track its
inventory internationally, it is yet to introduce these practices in its Indian operations. In
fact in 2005, Satyam was chosen to implement IT solutions for Bridgestone, at its
headquarters in Japan. This included consulting, implementation and operations for SAP
and Siebel CRM, Cognos business intelligence and content management.
3. P RICING STRATEGIES:

Pricing a product is a function of many factors. A number of factors affect the pricing of a
product directly. Some among them are brand value, competition, input costs, quality,
government policies, macroeconomic developments, etc.

3.1 Basic pricing strategies in the tyre


industry:
The tyre market is not very price sensitive. Consumers are more concerned about the tyres
functionality, than its price. Besides, being a homogenous product, most tyre companies price
their tyres at more or less the same levels. International players such as Bridgestone price their
tyres slightly higher than the rest of the market. This is partially to demonstrate its superior
quality and pedigree.

Bridgestone and MRF: Price


leaders
Bridgestone and MRF have long been leaders in the Passenger Car tyre segment. By virtue of
their market share, they have traditionally been price makers. The rest of the tyre industry has
followed the pricing cues set by these leaders.

Bridgestone- Using Price-Quality inference to its


advantage:
Many consumers use price as an indicator of quality. Bridgestone understands this subtle
connection very well. Being world leaders in quality and reliability, Bridgestone actively tries to
remind the superior quality factor to its customers by pricing its tyres a little higher than the
competition. Consumers are ready to pay this price because they perceive Bridgestone tyres to
be value-for-money. The high prices in turn reaffirm the perception of quality product in the
consumer’s mind. Thus, higher prices induce a continuous cycle of quality reaffirmation.

Bridgestone: Low Total Cost of


ownership
Another reason why Bridgestone is able to price its products higher is the value-for-money that
consumers associate with it. Bridgestone tyres last longer and perform better over the long run.
Thus the Total cost of ownership over the long term is very low. There is hardly any
maintenance, repair or replacement cost for a long time after purchase.

Bridgestone and MRF-using the Markup


pricing
The tyre method
industry being a very raw material intensive industry, the input costs mainly decides
the price of tyres. In fact, 90% of a tyres cost comprises of its raw material costs. Markup
pricing is the common pricing method followed across the tyre industry. This involves adding a
standard markup to the tyre’s production cost.
3.2Dealer discounts and
allowances:
While MRF (in keeping with its Pull strategy of concentrating on end consumers), does not
indulge the dealer with too many discounts and allowances, Bridgestone has mastered the art of
incentivizing the dealers with heavy discounts and allowances.

Some of the dealer discount schemes used by Bridgestone include: 1) Credit


discounts for quick credit repayments 2) Quantity discounts on large volumes (based
on discount slabs) 3) Seasonal discounts in the form of sell-in schemes for the dealers
during festivals.
4. PRODUCT P ROMOTION:

Marketing communications help a firm to inform, persuade and remind customers about its
products, directly or indirectly.

While Bridgestone India has traditionally followed a subdued promotion strategy to let its tyre’s
reputation for quality do the talking, MRF has gone all out to woo the consumer to its tyres. MRF
continually looks to improve its Brand Equity by maximum mediums of brand contact (consumer’s
exposure to the brand name). Today, MRF command top-of-mind recall excellent brand
recognition in all categories of vehicles in the tyre market.

4.1The Marketing Communication


mix:
Communication mix refers to the major mediums that companies use to promote their products.
There are eight major modes of market communication: Advertising, Sales Promotion, Events and
Experiences, Public Relations, Direct Marketing, Word-of-Mouth marketing, and Personal selling.

1) MRF: Gods of
Advertising
MRF uses advertising as the primary medium to reach out to its customers. The company
invests heavily on print, TV and outdoor media, to drive its brand into the minds of the
customer. MRF is credit with devising some of the most creative ads ever made for an
Indian tyre company. It allots a huge budget outlay for advertisements and other
promotional activities. Its mascot, the MRF muscleman along with its slogan “Tyres with
muscle” was once one of the most recognizable advertising campaign in Indian advertising
history. It was specially devised at Lintas by its CEO, Alyque Padamsee himself. Allyque
and his team painstakingly surveyed scores of truck drivers at road side dhabas to
understand their needs and wants.

MRF takes care to promote its tyres as tough, reliable and high endurance. This is because
its main share of customers comes from the Light and Heavy Commercial Vehicles
segment. Truck and bus owners in this segment consider strength and endurance as the No.1
factor desirable in a tyre. For the passenger and two-wheeler segment, MRF promotes itself
as a high quality and high performance tyre manufacturer.

2) Bridgestone: Driving Sales Promotions through


its dealers
Sales promotions are used more by Bridgestone than MRF. Bridgestone regularly introduces
festival offers, consumer discounts and other sops through its dealer outlets. These offers to
customers are called sell out schemes.
ffd8ffe000104a464946
Some recent offers and incentives that Bridgestone has provided its potential customers
0001020100530053000
include:
0ffe20c584943435f505
24f46494c4500010100
a) Free Provogue T-shirts worth Rs. 1,200/- for every car tyre purchase b) Free tyre
000c484c696e6f021000
and battery check-ups every 4-6 months exclusively for Bridgestone customers c) 50%
006d6e7472524742205
discount on alignment and balancing exclusively for Bridgestone customers d) Free F1
8595a2007ce00020009
racing trip tickets through lucky draw
0006003100006163737
04d5346540000000049
4543207352474200000
0000000000000000000
Bridgestone constantly works with its dealers, to give its customers a unique experience
0000f6d600010000000
while shopping for its tyres. As a part of achieving this enhanced experience, Bridgestone
0d32d48502020000000
has made it mandatory that only dealers with automatic wheel alignment and balancing
0000000000000000000
equipment can apply for its tyre dealerships. This ensures that when customers buy a
0000000000000000000
Bridgestone tyre, they also get an added benefit of perfectly aligned wheel fitting.
0000000000000000000
0000000000000000000
0000000000001163707
2740000015000000033
3) MRF: spin doctors of publicity
6465736300000184000 ffd8ffe000104a4649460001010100630
campaigns
0006c77747074000001 0630000ffe20c584943435f50524f46494
Over the years, MRF has perfected the art of publicizing
f000000014626b70740 c4500010100000c484c696e6f02100000
its brand through highly visible events and celebrity
0000204000000147258 6d6e74725247422058595a2007ce00020
endorsements.
595a000002180000001MRF has consciously aligned itself with a 009000600310000616373704d53465400
number of sporting events in India. Its most memorable
46758595a0000022c00 000000494543207352474200000000000
association with sports and celebrity endorsements was the 00000000000000000f6d6000100000000
0000146258595a00000
MRF label that adorned Sachin Tendulkar’s bat for many d32d48502020000000000000000000000
24000000014646d6e64
years. MRF is also well known for founding the MRF
0000025400000070646 000000000000000000000000000000000
Pace Foundation, which is today one of the
d6464000002c4000000 000000000000000000000000000000000
88767565640000034c0 premier training institute for India’s000000011637072740000015000000033
budding pace bowlers. Though
64657363000001840000006c777470740
cricket, given its cult like status, gave MRF a lot of publicity, it was
0000086766965770000
00001f000000014626b70740000020400
03d4000000246c756d6 its sponsorship of auto-racing projected its slogan, “Tyres with
0000147258595a0000021800000014675
9000003f8000000146d Muscle” and outlined the quality of its tyres and allied products .
8595a0000022c000000146258595a0000
6561730000040c00000 024000000014646d6e640000025400000
0247465636800000430 070646d6464000002c400000088767565
0000000c72545243000 640000034c0000008676696577000003d
0043c0000080c675452 4000000246c756d69000003f800000014
430000043c0000080c6 6d6561730000040c00000024746563680
4) 25452430000043c0000
Bridgestone: Riding the wave of Word-of-Mouth 00004300000000c725452430000043c00
marketing
080c746578740000000 00080c675452430000043c0000080c625
The biggest asset in Bridgestone’s marketing arsenal is452430000043c0000080c746578740000
0436f70797269676874 the goodwill it has created
for itself amongst
2028632920313939382 its thousands of satisfied customers and OEMs. Bridgestone tyres
0000436f7079726967687420286329203
are known for
04865776c6574742d50 their international quality, ride comfort and durability. OEMs prefer
1393938204865776c6574742d5061636b
Bridgestone over other manufacturers for its reliability and
61636b61726420436f6 quality. Similarly,
61726420436f6d70616e7900006465736
Bridgstone
d70616e790000646573 300000000000000127352474220494543
6300000000000000127 36313936362d322e31000000000000000
3524742204945433631 000000012735247422049454336313936
362d322e3100000000000000000000000
3936362d322e3100000
0000000000000000000000000000000
0000000000000000012
7352474220494543363
13936362d322e310000
0000000000000000000
0000000000000000000
000000000000
customers have had little reason for complaining about their tyre and have always
perceived it to b a value for money buy. This trust and user satisfaction seems to
have generated a large following of customers who strongly recommend
Bridgestone tyres. Most new Bridgestone customers purchase the tyre because
their close relatives, mechanics, or friends recommended it.

5) Bridgestone: Banking on Below-The-Line (BTL)


promotional activities
“Below The Line" promotion refers to forms of communication that do not include the
media. Below the line sales promotions are short-term incentives, largely aimed at
consumers. Put simply, BTL promotions are a very good way to achieve communication
objectives more efficiently when the budget is limited. BTL is especially suitable for
products whose target groups are limited and specific.

Bridgestone uses BTL in a big way. It indulges in sales promotion activities such as
encouraging dealers to promotion their tyres, and regularly introduces festival offers,
consumer discounts and other sops through its dealer outlets. These offers to customers are
called sell out schemes.

Some recent offers and incentives that Bridgestone has provided its potential customers
include:

a) Free Provogue T-shirts worth Rs. 1,200/- for every car tyre purchase b) Free tyre
and battery check-ups every 4-6 months exclusively for Bridgestone customers c) 50%
discount on alignment and balancing exclusively for Bridgestone customers d) Free F1
racing trip tickets through lucky draw

6)MRF: Banking on Above-The-Line (ATL) promotional


activities
Above-The-Line is a type of advertising that uses the media to promote a brand. This type
of communication is conventional and impersonal in nature. MRF invests heavily on print,
TV and outdoor media, to drive its brand into the minds of the customer. MRF is credited
with devising some of the most creative ads ever made for an Indian tyre company. It allots
a huge budget outlay for advertisements and other promotional activities. Its mascot, the
MRF muscleman along with its slogan “Tyres with muscle” was once one of the most
recognizable advertising campaigns in Indian advertising history.
4.2: Developing Effective
communications
4.2.1 Identifying the target
audience:
The first step to designing an effective communication strategy is identifying the target
audience. As the figure below shows, there are three main customer segments in the car
tyre market:

Original Equipment Manufacturers (OEMs)


The Replacement Market (replacement of old, worn out or defective tyres)
Exports
Brand Purchase Intention: Self-instructions to purchase a brand or to take purchase
related action.

1) MRFcreating Brand Awareness:

MRF has mastered the art of creating lasting impressions in the mind of the consumer.
It pioneered the practice of heavy advertising and promotion in the tyre industry. So
much so, that today, MRF commands top-of-mind recall and top brand recognition
amongst all tyre manufacturers in India. There is hardly any tyre customer who hasn’t
heard of the MRF brand. MRF achieved this remarkable feat by adopting a multi-
pronged marketing strategy that involved endorsements by sports celebrities like
ffd8ffe000104a46494600010201006b006b0000ffe20c5849
Sachin Tendulkar, Brian Lara and Steve Waugh, promoting popular sports like cricket
43435f50524f46494c4500010100000c484c696e6f02100000
and car rally races, and even introducing its own mascot: the MRF muscleman, that
6d6e74725247422058595a2007ce000200090006003100006
reflected the tough image it projected for its tyres. Today, dealers look forward to
16373704d5346540000000049454320735247420000000000
stock MRF tyres because customers demand it.
000000000000000000f6d6000100000000d32d48502020000
0000000000000000000000000000000000000000000000000
2) Bridgestoneshaping Purchase Intention through Sellout
0000000000000000000000000000000000000000001163707
schemes
274000001500000003364657363000001840000006c777470
Sell out schemes refer to the promotional offers and discounts that companies offer to
74000001f000000014626b707400000204000000147258595
positively impact the buyer’s purchase decision. Bridgestone, in collaboration with its
a00000218000000146758595a0000022c000000146258595a
dealers, offers a variety of discounts, special deals and compliments to influence the
0000024000000014646d6e640000025400000070646d64640
customer into buying its tyres.
00002c400000088767565640000034c000000867669657700
0003d4000000246c756d69000003f8000000146d656173000
Some recent offers and incentives that Bridgestone has provided its potential
0040c0000002474656368000004300000000c725452430000
For each ofinclude:
customers these segments a appropriate communication strategy
043c0000080c675452430000043c0000080c6254524300000
needs to be developed.
43c0000080c7465787400000000436f707972696768742028
a) Free Provogue T-shirts worth Rs. 1,200/- for every car tyre
63292031393938204865776c6574742d5061636b617264204
purchase b) Free tyre and battery check-ups every 4-6 months
36f6d70616e79000064657363000000000000001273524742
4.2.2 2049454336313936362d322e3100000000000000000000001
exclusively
Determining for Bridgestone
the customers c) 50% discount on alignment
Communication
2735247422049454336313936362d322e3100000000000000
and balancing exclusively for Bridgestone customers d) Free F1
Objectives
0000000000000000000000000000000000000000
racing
There trip
are four tickets
possible through lucky
communication drawfor a company:
objectives

Category Need: Establishing a product or service as belonging to a particular category


of products. Especially used for new-to-the-world products.

Brand Awareness:
4.2.3 Designing Building brand recognition and Brand Recall through promotional
the communication
activities. Brand Awareness forms the foundation for building Brand Equity.
To design a communication strategy that achieves the desired response, the marketer
needs to solve three problems: what to say? (message strategy), How to say it? (creative
Brand and
strategy) Attitude: Evaluating
who should say it? a(message
brand with respect to its perceived ability to meet a
source)
relevant need.
Since Bridgestone India does not advertise its tyres much but instead depend on Push
strategies at the dealer level and reputation at the OEM level to gain sales, let us instead
look at how MRF has designed its communication strtategy.

MRF – Using Sports and Muscle as Message


Strategies
The MRF mascot, the MRF muscleman, clearly states the category membership MRF
subscribes to. MRF communicates to the customer its superior endurance and strength
through its advertisments. The company sponsors a number of sports such as cricket and
rally racing, to position its tyres as high endurance and sporty. Its slogan, “Tyres we race
are the tyres you buy” stands testimony to their category membership. MRF takes care to
promote its tyres as tough, reliable and high endurance. This is because its main share of
customers comes from the Light and Heavy Commercial Vehicles segment. Truck and bus
owners in this segment consider strength and endurance as the No.1 factor desirable in a
tyre.

MRF – Implementing Creative Strategy through informational


appeal
The creative strategy (How to say it?) for a communication channel can be realized
through Informational Appeals.

Informational Appeals elaborate on a product’s attributes and benefits. MRF


communicates its brand value to the customer by emphasizing on the toughness and
durability of its tyres. The benefit it offers the consumer is increased endurance and
performance under the most testing condition.

MRF – Using celebrities as Message Sources MRF has mastered the art
of effectively using sports celebrities to endorse its products. The list of celebrities who
have endorsed the MRF brand is formidable. The list includes sporting greats such as
Sachi Tendulkar, Brian Lara, Steve Waugh and Gautam Gambhir. One of the most
enduring images of MRF brand is the MRF logo that adorned Sachin Tendulkar’s bat over
a decade.
MARKET FEEDBACK AND CONTROL MECHA
NISMS
A PRIMARY DATA ANALY
SIS

As a part of our primary data exercise, we visited 10 tyre dealers in Coimbatore who stocked
MRF and Bridgestone brand of tyres. We prepared a closed-ended questionnaire for them and
took their feedback on various parameters involving the tyres they sell. The results provided us
with a deep insight into a typical dealer’s mind.

A Marketing Survey of Tyre Dealers (2009-2010)


Questionnaire

1. Details of the firm and proprietor.


ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f46494c4500010100000c48
4c696e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d534654000
0000049454320735247420000000000000000000000000000f6d6000100000000d32d4850202000000
0000000000000000000000000000000000000000000000000000000000000000000000000000000000
00000001163707274000001500000003364657363000001840000006c77747074000001f0000000146
26b707400000204000000147258595a00000218000000146758595a0000022c000000146258595a000
0024000000014646d6e640000025400000070646d6464000002c400000088767565640000034c00000
08676696577000003d4000000246c756d69000003f8000000146d6561730000040c000000247465636
8000004300000000c725452430000043c0000080c675452430000043c0000080c625452430000043c0
000080c7465787400000000436f70797269676874202863292031393938204865776c6574742d50616
36b61726420436f6d70616e790000646573630000000000000012735247422049454336313936362d3
22e31000000000000000000000012735247422049454336313936362d322e310000000000000000000
2. 00000000000000000000000000000000000
Facilities available in your shop.
Wheel Alignment
Wheel Balancing
Tyre Changing
Nitrogen Gas
Alloys
MRF
3. Dealer For Others
Apollo
Ceat
JK
Bridgestone
Birla
Goodyear
MRF
4. Which Brand is more profitable? Michelin
Apollo
Others
Ceat
JK
Bridgestone
Birla
Goodyear
Michelin
Others
MRF
Brand Strategy Analysis
5. JK Tyres
Best selling pattern and size.
Goodyear

Apollo

Bridgestone

Michelin

Ceat MRF
Apollo
6. Which brand is more preferred byCeat
Birla Tyres
customers? JK
Bridgestone
Others
Birla
Goodyear
Michelin
7. Price of different brand Others
products?
ffd8ffe000104a4649460001020100c800c80000ffe20c584943435f50524f46494c450001
0100000c484c696e6f021000006d6e74725247422058595a2007ce000200090006003100
00616373704d5346540000000049454320735247420000000000000000000000000000f
6d6000100000000d32d4850202000000000000000000000000000000000000000000000
00000000000000000000000000000000000000000000000000116370727400000150000
MRF
8. Which company is providing better after
0003364657363000001840000006c77747074000001f000000014626b70740000020400
Apollo
sales service?
0000147258595a00000218000000146758595a0000022c000000146258595a000002400
Ceat
0000014646d6e640000025400000070646d6464000002c400000088767565640000034c
JK
0000008676696577000003d4000000246c756d69000003f8000000146d6561730000040c
Bridgestone
0000002474656368000004300000000c725452430000043c0000080c675452430000043
Birla
Dealer Number
c0000080c625452430000043c0000080c7465787400000000436f7079726967687420286
Goodyear
MRFMRF
9. Which companies sell out scheme isMichelin
more
3292031393938204865776c6574742d5061636b61726420436f6d70616e790000646573
Apollo
Apollo
effective? Others
630000000000000012735247422049454336313936362d322e310000000000000000000
Ceat
Ceat
00012735247422049454336313936362d322e3100000000000000000000000000000000
JKJK
0000000000000000000000 Bridgestone
GDY
Birla
BS
Goodyear
Michelin
Michelin
Birla
Others
MRF
10. Which companies sell out scheme isOthers
effectively reached
Apollo
1
to customers? Ceat
Y
JK
Bridgestone
Y
Birla
Goodyear
Michelin
Others

Y
3
Y

Brand Strategy Analysis


1. Dealer For
Y
4
Y
Y
Y
Y
Y
Y

Y
Y
5

Y
Y
Y

Y
6
Y

Dealer Number
MRF
Apollo
Ceat
Brands JK
Total GDY
MRF 7
BS
6 Y
Michelin
Apollo Y
Birla
6 Y
Others
Ceat 1
4 Y
JK
4
Goodyear
Y
3
Y
Bridgestone
8
3
Michelin
1 Y
Birla
5 2
Others Y
5 Y

Y
Y

Y
3
Y
Y

10
Y
Y
Y

Y
Brand
4 Strategy Analysis
Y profitable?
2. Which brand is more
Y
Y
Y
Y
Y
Y

Y
5
Y
ffd8ffe000104a4649460001020100c8
00c80000ffe20c584943435f50524f464
94c4500010100000c484c696e6f02100
0006d6e74725247422058595a2007ce
00020009000600310000616373704d5
3465400000000494543207352474200
6
00000000000000000000000000f6d60
Y
00100000000d32d4850202000000000
Y
Brands
0000000000000000000000000000000
Total
Y
Percentage 0000000000000000000000000000000
MRF
0000000000000000000000001163707
6
28.57 % Dealer Number
2740000015000000033646573630000
Apollo MRF
01840000006c77747074000001f0000
Apollo
3
14.28 % Ceat Dealer for
00014626b7074000002040000001472
7
Ceat JK
Y
58595a00000218000000146758595a0
1 GDY
4.76 % BS MRF
000022c000000146258595a00000240
Michelin Apollo
JK 00000014646d6e64000002540000007
Birla Ceat JK
2 Goodye
9.52 % Others
0646d6464000002c400000088767565
1 ar
Goodyear Y
640000034c000000867669657700000
Y
4
1 3d4000000246c756d69000003f80000
19.04 %
Bridgestone 00146d6561730000040c00000024746
2 8
9.52 % 56368000004300000000c7254524300
Michelin 00043c0000080c675452430000043c0
Y
0
0.00 % 000080c625452430000043c0000080c
Birla 7465787400000000436f70797269676
1 Y
4.76 % 874202863292031393938204865776c
2
Others 6574742d5061636b61726420436f6d7
2
9.52% 0616e79000064657363000000000000
Total Y
0012735247422049454336313936362
9
21 Y
100 % d322e31000000000000000000000012
Y
735247422049454336313936362d322
e310000000000000000000000000000
00000000000000000000000000Bridge
3
stone Michelin
Y Birla Others
10

Y
4
3. Which Brand is more preferred by customers?
Y

Y
Y

Y
5
Y
Y

ffd8ffe000104a4649460001
6 020100c800c80000ffe20c584
943435f50524f46494c45000
Y 10100000c484c696e6f02100
0006d6e7472524742205859
5a2007ce000200090006003
Brands 10000616373704d53465400
Total 00000049454320735247420
Percentage Y 00000000000000000000000
MRF
Dealer Number
Which brand is
0000f6d6000100000000d32d
6 48502020000000000000000
25 % MRF most
00000000000000000000000
Apollo
00000000000000000000000
Apollo 7
Ceat
profitable?
00000000000000000000000
3
12.5 % JK00000000001163707274000MRF
Ceat GDY 00150000000336465736300
Y 0001840000006c777470740Apollo
BS
1
00001f000000014626b70740
Michelin Ceat JK
4.16 %
0000204000000147258595a
Birla
JK 00000218000000146758595Goodyear
2 Others
1 a0000022c00000014625859Bridgesto
8.33 % Y
Goodyear L 5a0000024000000014646d6
ne
1 H e640000025400000070646d
6464000002c400000088767
4.16 % Michelin
8 565640000034c0000008676
Bridgestone MY 696577000003d4000000246Birla
7 c756d69000003f8000000146
29.16 % M d6561730000040c00000024Others
Michelin 74656368000004300000000
1 c725452430000043c000008
4.16 % 0c675452430000043c00000
Birla Y 80c625452430000043c0000
2 080c7465787400000000436f
1 M 70797269676874202863292
4.16 % Y
Others 031393938204865776c6574
2 9 742d5061636b61726420436f
6d70616e790000646573630
8.33 %
Total M 00000000000001273524742
2049454336313936362d322
24
e3100000000000000000000
100 % H 00127352474220494543363
Y 13936362d322e3100000000
L
Y 00000000000000000000000
3 00000000000000000000000
M

10
Y
H

M
Brand Strategy Analysis
Y
4. Price of different brand
4 products
M

Y
L
M

L
5
L
M

H
Brands
High L
Moderate 6
Low M
MRF
? ffd8ffe000104a46494600010201
M
5 00c800c80000ffe20c584943435f5
3 0524f46494c4500010100000c484
L
Apollo c696e6f021000006d6e747252474
1 22058595a2007ce0002000900060
4 0310000616373704d5346540000
- 000049454320735247420000000
Which
M brand is
Ceat 000000000000000000000f6d6000
? 7
100000000d32d48502020000000
2 most
000000000000000000000000000
1 preferred by
M
000000000000000000000000000
JK 000000000000000000000000000
? customers?
000000011637072740000015000
M
4 000033646573630000018400000
1 06c77747074000001f0000000146
H
Goodyear26b707400000204000000147258
? 595a00000218000000146758595a
L
3 0000022c000000146258595a0000
1 024000000014646d6e640000025
Bridgestone 8
400000070646d6464000002c4000
3 M
00088767565640000034c0000008
2 676696577000003d4000000246c7
- M
56d69000003f8000000146d65617
L Goodyear
Michelin 30000040c0000002474656368000
4 004300000000c725452430000043
? M
c0000080c675452430000043c000
- H
0080c625452430000043c0000080
Birla c7465787400000000436f7079726
? L
967687420286329203139393820
1 9
4865776c6574742d5061636b6172
1 L
6420436f6d70616e790000646573
Others 630000000000000012735247422
? 049454336313936362d322e3100
1 000000000000000000001273524
M
5 7422049454336313936362d322e
M
310000000000000000000000000
000000000000000000000000000
00
10
M
M

H
H
High Priced
L

ffd8ffe000104a46494600010
20100c800c80000ffe20c5849
43435f50524f46494c4500010
100000c484c696e6f02100000
6d6e74725247422058595a20 Apollo
07ce00020009000600310000 Bridgesto
616373704d53465400000000
ne
494543207352474200000000
00000000000000000000f6d6 Michelin
000100000000d32d48502020
000000000000000000000000
000000000000000000000000
ffd8ffe000104a4649460001
000000000000000000000000
Moderately Priced
020100c800c80000ffe20c58
000000000000000000000011
4943435f50524f46494c4500
637072740000015000000033
010100000c484c696e6f0210
64657363000001840000006c
ffd8ffe000104a464946000102
00006d6e747252474220585 MRF
77747074000001f000000014
0100c800c80000ffe20c5849434
95a2007ce00020009000600
35f50524f46494c45000101000
310000616373704d5346540
626b70740000020400000014 Apollo
00c484c696e6f021000006d6e7
00000004945432073524742
7258595a0000021800000014 Ceat JK
4725247422058595a2007ce000
00000000000000000000000
6758595a0000022c00000014 Goodyear
2000900060031000061637370
00000f6d6000100000000d3
6258595a0000024000000014
4d53465400000000494543207
2d485020200000000000000
646d6e640000025400000070 Bridgesto
Dealer Number
3524742000000000000000000
00000000000000000000000
646d6464000002c400000088
MRF
0000000000f6d6000100000000
00000000000000000000000 ne
767565640000034c00000086
Apollo
d32d485020200000000000000
00000000000000000000000
Ceat Michelin
0000000000000000000000000
00000000000011637072740
76696577000003d400000024
JK
0000000000000000000000000
00001500000003364657363
6c756d69000003f800000014 Birla
GDY
0000000000000000000000000
000001840000006c7774707
6d6561730000040c00000024
BS
0000001163707274000001500
4000001f000000014626b70
74656368000004300000000c
Low Priced Michelin
0000033646573630000018400
74000002040000001472585
725452430000043c0000080c
Birla
00006c77747074000001f00000
95a00000218000000146758
675452430000043c0000080c
Others
0014626b70740000020400000
595a0000022c00000014625
625452430000043c0000080c
1
0147258595a00000218000000
8595a000002400000001464 MRF
Y
146758595a0000022c00000014
6d6e6400000254000000706
7465787400000000436f7079
6258595a00000240000000146
46d6464000002c400000088 Apollo
726967687420286329203139
46d6e64000002540000007064
767565640000034c0000008 Ceat JK
3938204865776c6574742d50
6d6464000002c400000088767
676696577000003d4000000
61636b61726420436f6d7061
565640000034c000000867669
246c756d69000003f800000 Goodyear
6e7900006465736300000000
6577000003d4000000246c756
0146d6561730000040c0000 Bridgesto
Y
000000127352474220494543
d69000003f8000000146d65617
00247465636800000430000
36313936362d322e31000000
30000040c0000002474656368
0000c725452430000043c00 ne
000004300000000c725452430
00080c675452430000043c0
000000000000000012735247 Michelin
Y
000043c0000080c67545243000
000080c625452430000043c
422049454336313936362d32
2
0043c0000080c6254524300000
0000080c746578740000000
2e3100000000000000000000
43c0000080c746578740000000
0436f707972696768742028
000000000000000000000000
Y
0436f707972696768742028632
63292031393938204865776
0000000000
92031393938204865776c6574
c6574742d5061636b617264
742d5061636b61726420436f6d
20436f6d70616e790000646
Y
70616e7900006465736300000
57363000000000000001273
Y
0000000001273524742204945
52474220494543363139363
4336313936362d322e3100000
62d322e3100000000000000
0000000000000000012735247
00000000127352474220494
422049454336313936362d322
54336313936362d322e3100
e310000000000000000000000
00000000000000000000000
3
0000000000000000000000000
00000000000000000000000
0000000
000000
1.

4
5. Which company provides better after sales
Y service?
Y

5
ffd8ffe000104a46494600
01020100c800c80000ffe20
c584943435f50524f46494c
4500010100000c484c696e
6f021000006d6e74725247 Y
422058595a2007ce000200 Y
0900060031000061637370
4d53465400000000494543
2073524742000000000000
0000000000000000f6d600 6
0100000000d32d48502020
0000000000000000000000
0000000000000000000000
0000000000000000000000 Brands
0000000000000000000000 Total
0000001163707274000001 Percentage
Dealer Number MRF
5000000033646573630000
MRF 4
01840000006c7774707400
Which company provides 19.05 %
0001f000000014626b7074 Apollo
better after sales service? Y Apollo
0000020400000014725859 Ceat
7
JK 3
5a00000218000000146758 Y 14.28 %
GDY
595a0000022c0000001462
1 Apollo Ceat JK Goodyear
Y
BS Ceat
58595a0000024000000014 Michelin 1
646d6e6400000254000000 Birla 4.76 %
70646d6464000002c40000 Others JK
0088767565640000034c00 1 2
00008676696577000003d4 Y 9.52 %
1 Y Goodyear
000000246c756d69000003 Bridgesto 2
f8000000146d6561730000 ne 9.52 %
040c000000247465636800 Bridgestone
8
0004300000000c72545243 Y 4
0000043c0000080c675452 Y 19.05 %
430000043c0000080c6254 Michelin
52430000043c0000080c74 2
Y 9.52 %
65787400000000436f7079
7269676874202863292031 2 Birla
Y 1
393938204865776c657474
4.76 %
2d5061636b61726420436f Y
Others
6d70616e79000064657363
2
0000000000000012735247 Y
9 9.52 %
422049454336313936362d Total
322e310000000000000000 21
0000001273524742204945 100 %
4336313936362d322e3100
0000000000000000000000 Y
0000000000000000000000 3
00000000MRF
10
Y
Y

4
Which company’s sell out YYscheme is most effective?
Y
Y
Y

Y
Brands
Total
Y Percentage
MRF
Dealer Number 4
MRF 17.39 %
Apollo Apollo
Ceat 3
Which JK
7 13.04 %
GDY Ceat
company's Y
BS 2
sellout Michelin 8.69 %
Birla JK
schemes are Others 4
more 1
Y
17.39 %
MRF Y Goodyear
effective? 2
8.69 %
Apoll Bridgestone
8 6
o 26.08 %
Y Michelin
1
Ceat Y 4.34 %
Birla
2 0
Y 0.00 %
Y Others 69 |Page
1
4.34 %
9 Total
Y 23
Y 100 %

Y
3
Y
Y
ffd8ffe000104a46
49460001020100c8 10
00c80000ffe20c584
943435f50524f464
94c4500010100000 Y
c484c696e6f02100 Y
0006d6e747252474
4
22058595a2007ce0
Which company’s sell out schemesYeffectively reach the customer?
0020009000600310
000616373704d534
6540000000049454
3207352474200000 Y
0000000000000000
ffd8ffe000104a46494 Y
60001020100c800c80
0000000f6d600010
000ffe20c584943435f
0000000d32d48502
50524f46494c450001
0200000000000000
0100000c484c696e6f0
0000000000000000
21000006d6e7472524 5
0000000000000000
7422058595a2007ce0
0000000000000000
002000900060031000 Y
0000000000000000
0616373704d5346540
000000049454320735
0000000000000000
247420000000000000
0116370727400000
000000000000000f6d Y
1500000003364657
6000100000000d32d4
3630000018400000
850202000000000000
06c7774707400000
000000000000000000
1f000000014626b7
000000000000000000
6
0740000020400000
000000000000000000
000000000000000000 Y
0147258595a00000 Y
000000000001163707
2180000001467585
274000001500000003 Brands
95a0000022c00000
364657363000001840 Total
0146258595a00000
000006c77747074000 Percentage
24000000014646d6
001f000000014626b7 MRF
e640000025400000
074000002040000001 5
070646d646400000
47258595a000002180
Which company's 23.81 %
00000146758595a000
2c40000008876756 Apollo
sellout schemes
0022c0000001462585
5640000034c00000 7 3
effectivley reach
95a000002400000001
0867669657700000 14.28 %
4646d6e64000002540
the customer? Ceat
3d4000000246c756
0000070646d6464000 1
d69000003f800000
002c40000008876756
MRF 4.76 %
0146d65617300000
5640000034c0000008 Y JK
40c0000002474656
676696577000003d40 3
00000246c756d69000
3680000043000000 Apoll Y 14.28 %
003f8000000146d656
00c7254524300000 Goodyear
1730000040c0000002 1
43c0000080c67545 o Name
474656368000004300 4.76 %
2430000043c00000
000000c72545243000 Pattern
11 8 Bridgestone
80c6254524300000
0043c0000080c67545 Size
Ceat Y Tyres 7
43c0000080c74657
2430000043c0000080 MRF
33.33 %
87400000000436f7
c625452430000043c0 All passenger car segments.
175/80 R13 Michelin
000080c74657874000
0797269676874202 0
00000436f707972696
8632920313939382 0.00 %
768742028632920313 ZCL
04865776c6574742 145/70 R12 Birla
93938204865776c657 Y 0
d5061636b6172642
4742d5061636b61726 0.00 %
0436f6d70616e790
420436f6d70616e790 ZUL
145/80 R12 Others
0006465736300000
000646573630000000 1
0000000001273524
000000012735247422 4.76 %
049454336313936362
ZUTS 9
7422049454336313 235/75 R15 Total
d322e3100000000000
936362d322e31000 21
000000000001273524 100 %
0000000000000000 ZCT
742204945433631393 165/65 R13
0001273524742204
6362d322e310000000 Y
9454336313936362
000000000000000000
All T & B tyre models.
d322e31000000000
000000000000000000 175/70 R13
0000000000000000
00000000000
900/20
10
Y
1000/20

Y
1100/20
ApolloY Tyres
Best selling
Amezerpattern
XL and size.
145/70 R12

Aspire
145/80 R12

Sigma Steel (All Models)


165/65 R13

Amargold (T&B)
900/20

All T & B tyre models.


1000/20

1100/20
Ceat Tyres
All truck & bus tyre.
900/20 1000/20 1100/20
JK Tyres
All rally models.
145/70 R12

JK Ultima-XP
145/80 R12

Elanzo Crusero
165/65 R13

Ultima-NXT
165/60 R13

Brute
235/70 R16

Tornado
155/65 R13
Goodyear
Maruti (All Models)
145/70 R12

G28
145/80 R12

GPS2
165/65 R13

T & B Models
195/70 R14

72 |Page
175/70 R14

155/70 R13

900/20

1000/20
1100/20
Bridgestone
S322 & B350
145/70 R12

S248
145/80 R12

S322 & B250


145/70 R13

B390
MXTE 155/65 R13
165/65 R13
Birla car
All passenger Tyres
segments.
All T & B tyre models. 205/80 R13
900/20 1000/20 1100/20
Other Tyres
Nexen SB802 92H N5000 SB652 N7000 CP661 Falken
155/80 R14
255/70/16 165/65 R13 155/70 R13 145/80 R12 P205/65 R15 175/70 R12 145/80 R13 235/70 R16

165/80 R14
Michelin Tyres
XM (Models)
175/75 R12

Energy
195/70 R12
CHAPTER
3

MARKETING STRATEGIES:A REL


ATIVE ANALYSIS
ANALYZING THE MARKET STRATE
GIES
A RELATIVE ANALYS
IS

1.
ANALYSIS OFTHE OVERALL MARKETING STRATEGIES
:

1.1Marketing Strategy
Analysis

1) Bridgestone: Pursuing a Push strategy, reputation, and BTL (Below


the line ) promotion strategies

Bridgestone pursues a strong push strategy in its channel marketing. The advertising layout
for Bridgestone India is minimal. Bridgestone spends very little on advertising and
promotion. Instead, they concentrate on incentivizing the dealer to stock, promote and sell
their products. As a result, Bridgestone regularly introduces sell-in schemes (promotional
schemes for dealers), gold vouchers, international holiday vouchers, OE camps, etc.

Bridgestone uses BTL promotional activities in a big way. It indulges in sales promotion
activities such as encouraging dealers to promotion their tyres, and regularly introduces
festival offers, consumer discounts and other sops through its dealer outlets. These offers to
customers are called sell out schemes.

Some recent offers and incentives that Bridgestone has provided its potential customers
include:

a) Free Provogue T-shirts worth Rs. 1,200/- for every car tyre purchase b) Free tyre
and battery check-ups every 4-6 months exclusively for Bridgestone customers c) 50%
discount on alignment and balancing exclusively for Bridgestone customers d) Free F1
racing trip tickets through lucky draw

The biggest asset in Bridgestone’s marketing arsenal is the goodwill it has created for itself
amongst its thousands of satisfied customers and OEMs. Bridgestone tyres are known for
their international quality, ride comfort and durability. OEMs prefer Bridgestone over other
manufacturers for its reliability and quality. Similarly, Bridgestone customers have had little
reason for complaining about their tyre and have always perceived it to b a value for money
buy. This trust and user satisfaction seems to have generated a large following of customers
who strongly recommend Bridgestone tyres. Most new Bridgestone customers purchase the
tyre because their close relatives, mechanics, or friends recommended it.
75 |Page
Analysis:

Though Bridgestone has succeeded in almost completely wooing the OEM market with its
focus on quality, reliability and international pedigree, the Replacement market still seems
to give it sleepless nights. The Push channel strategy adopted by Bridgestone might have
made it popular with the dealers (who receive numerous incentives from Bridgestone), but
the end customer still considers MRF as the natural choice, thanks to its high visibility
campaigns. Bridgestone needs to take a leaf out of MRF’s aggressive ATL promotional
campaigns and start targeting the customer directly. With its international reputation, parent
company’s brand equity and strong financial outlay, Bridgestone has all it takes to launch a
strong promotional campaign to increase its brand equity in the minds of the consumer.

2) MRF: Masters at Pull strategy, Publicity campaigns and ATL


promotional methods
MRF follows exactly the opposite strategy. MRF has mastered the art of Pull strategy. It
pioneered the practice of heavy advertising and promotion in the tyre industry. So much so,
that today, MRF commands top-of-mind recall and top brand recognition amongst all tyre
manufacturers in India. There is hardly any tyre customer who hasn’t heard of the MRF
brand. MRF achieved this remarkable feat by adopting a multi-pronged marketing strategy
that involved endorsements by sports celebrities like Sachin Tendulkar, Brian Lara and
Steve Waugh, promoting popular sports like cricket and car rally races, and even
introducing its own mascot: the MRF muscleman, that reflected the tough image it
projected for its tyres.

Over the years, MRF has perfected the art of publicizing its brand through highly visible
events and celebrity endorsements. MRF has consciously aligned itself with a number of
sporting events in India. Its most memorable association with sports and celebrity
endorsements was the MRF label that adorned Sachin Tendulkar’s bat for many years. MRF
is also well known for founding the MRF Pace Foundation, which is today one of the
premier training institute for India’s budding pace bowlers. Though cricket, given its cult
like status, gave MRF a lot of publicity, it was its sponsorship of auto-racing projected its
slogan, “Tyres with Muscle” and outlined the quality of its tyres and allied products

Analysis

MRF has been immensely successful in creating a brand that has become a household name
today. Its marketing campaign has been one of the most innovative ever in the history of
Indian advertising, thus wooing the customer completely. However, MRF Achilles heel
seems to be its dealer relations. MRF so heavily concentrates on its
customer promotion activities, that it hardly pays any attention to incentivizing the dealers.
This is reflected in the very low margins it offers its dealers and the almost complete
absence of promotional activates such as discounts, gifts, compliments, etc for the dealers
(called Sell in schemes). Dealers stock MRF tyres simply because customers demand them.
They do not seem to be very keen on promoting the product, since the company does not
incentivize them to do so. A better incentive scheme for the dealers could change this
situation in MRF’s favor.

1.2Porter’s Generic Strategy


Analysis
Michael Porter proposes three generic strategies that form the foundation for strategic
thinking:

ffd8ffe000104a46494600010101008600910000ffe20c584943435f50524f46494c4500010100000
c484c696e6f021000006d6e74725247422058595a2007ce00020009000600310000616373704d534
6540000000049454320735247420000000000000000000000000000f6d6000100000000d32d4850
2020000000000000000000000000000000000000000000000000000000000000000000000000000
00000000000000000001163707274000001500000003364657363000001840000006c7774707400
0001f000000014626b707400000204000000147258595a00000218000000146758595a0000022c00
0000146258595a0000024000000014646d6e640000025400000070646d6464000002c4000000887
67565640000034c0000008676696577000003d4000000246c756d69000003f8000000146d656173
0000040c0000002474656368000004300000000c725452430000043c0000080c675452430000043
c0000080c625452430000043c0000080c7465787400000000436f707972696768742028632920313
93938204865776c6574742d5061636b61726420436f6d70616e7900006465736300000000000000
12735247422049454336313936362d322e310000000000000000000000127352474220494543363
13936362d322e31000000000000000000000000000000000000000000000000000000

1) Overall Cost Leadership strategy: Achieving lowest production and


distribution costs so that they can price lower than the competitor.

This strategy does not work in the tyre industry for the simple reason that tyres are a
highly raw material-intensive industry. More than 90% of the total cost of
production stems from raw material costs. Given this fact, it becomes extremely
difficult to produce tyres at costs that are significantly lower than that of the
competitors, since raw materials cost the same to all industry players.

2) Differentiation strategy: The business concentrates exclusively on achieving a


superior performance in an important customer benefit area.
Bridgestone -Quality and Value for Money
Bridgestone has achieved a high degree of differentiation in the market by
positioning its tyres as international quality with value for money. The success of this
positioning is amply clear from the fact that Bridgestone is the preferred tyre supplier
to a majority of Automobile OEMs. OEMs generally select suppliers based on the
products quality and reliability. Bridgestone’s main value proposition is its
international quality and value for money. Every Bridgestone customer is assured of
a tyre that is of international standards and will give him trouble-free service for a
long time, thus giving him value for his money.

MRF-Tyres with Muscles


MRF has for log concentrated on the high performance its tyres offer in trying
conditions. To further this image, it has partnered with many sports events and
created a mascot that reflects the toughness it claims in it tyres: the MRF
muscleman.

MRF prides itself in making tyres that go into some of the most trying conditions on
Indian roads: onto Heavy Vehicles on rough Indian roads. Consequently, MRF
offers a compelling value proposition to heavy vehicle owners as well as passenger
car and two wheeler owners: Quality tyres that endure in the worst of conditions. It
drives home this macho message through its mascot, the MRF muscleman.

3) Focus strategy: In a focus strategy the business focuses on one or more narrow
market segments

Bridgestone India- Leaders in the Passenger Car Tyre market


Bridgestone India has for the past one decade, focused exclusively on the Passenger
Car Tyre segment. One major reason for restricting itself to this segment was that
Bridgestone manufactures only radial tyres. While the rest of the Indan tyre market
still runs mostly on non-radial tyres, the Passenger Car market has almost
completely been radialised. This gave Bridgestone an opportunity to capture market
share with its international quality and value for money proposition. Today,
Bridgestone is the market leader in this category with a share of 31% of the Indian
passenger car tyre market.

MRF- Focusing on heavy duty vehicles


Unlike Bridgestone, MRF has a product portfolio that covers the entire tyre industry.
However, MRF’s promotional strategy focuses moreon the need of the Heavy duty
truck and bus driver. This is mainly because a majority i=of its sales happe in the
Heavy and Light Commercial Vehicles market. In order to tap this market further,
MRF positions its tyres as “tyres with muscle”, to highlight its high endurance and
strength.
1.3 Creating
Value:
1.3.1 Bridgestone – Quality and Value for
money:
Bridgestone’s main value proposition is its international quality and value for money.
Bridgestone prides itself for making tyres that incorporate the international standards that
people world over have come to associate with it.

Bridgestone delivers this value by ensuring that every customer is assured of a tyre that is
of international standards and will give him trouble-free service for a long time, thus
giving him value for his money.

1.3.2 MRF – Endurance


guaranteed:
MRF prides itself in making tyres that go into some of the most trying conditions on
Indian roads: onto Heavy Vehicles on rough Indian roads. Consequently, MRF offers a
compelling value proposition to heavy vehicle owners as well as passenger car and two
wheeler owners: Quality tyres that endure in the worst of conditions. It drives home this
macho message through its mascot, the MRF muscleman.

MRF delivers this value to the customers by guaranteeing that their tyres are designed to
endure in the most trying of Indian weathers and roads. To achieve this MRF regularly
tests its tyres in cross-country rallies and other extreme conditions.

1.4Communicating the
Value:
MRF takes care to promote its tyres as tough, reliable and high endurance. MRF has mastered
the art of creating lasting impressions in the mind of the consumer. It pioneered the practice of
heavy advertising and promotion in the tyre industry. So much so, that today, MRF commands
top-of-mind recall and top brand recognition amongst all tyre manufacturers in India. There is
hardly any tyre customer who hasn’t heard of the MRF brand. MRF achieved this remarkable
feat by adopting a multi-pronged marketing strategy that involved endorsements by sports
celebrities like Sachin Tendulkar, Brian Lara and Steve Waugh, promoting popular sports like
cricket and car rally races, and even introducing its own mascot: the MRF muscleman, that
reflected the tough image it projected for its tyres. Today, dealers look forward to stock MRF
tyres because customers demand it.

Bridgestone on the other hand banks more on its ability to incentivize dealers and also on
Word-of-Mouth marketing from its thousands of satisfied customers to promote its tyres.
OEMs prefer Bridgestone over other manufacturers because of their positive experience with
Bridgestone tyres. Its international links with F1 racing also adds a halo of pedigree around the
brand.
1.5Capturing the Value – pricing
philosophies:
The tyre market is not a very price sensitive market. Consumers are more concerned about
the tyres functionality, than its price. Besides, being a homogenous product, most tyre
companies price their tyres at more or less the same levels. International players such as
Bridgestone price their tyres slightly higher than the rest of the market. This is partially to
demonstrate its superior quality and pedigree.

Bridgestone and MRF: Price


leaders
Bridgestone and MRF have long been leaders in the Passenger Car tyre segment. By virtue of
their market share, they have traditionally been price makers. The rest of the tyre industry has
followed the pricing cues set by these leaders.

Bridgestone- Using Price-Quality inference to its


advantage:
Many consumers use price as an indicator of quality. Bridgestone understands this subtle
connection very well. Being world leaders in quality and reliability, Bridgestone actively tries to
remind the superior quality factor to its customers by pricing its tyres a little higher than the
competition. Consumers are ready to pay this price because they perceive Bridgestone tyres to
be value-for-money. The high prices in turn reaffirm the perception of quality product in the
consumer’s mind. Thus, higher prices induce a continuous cycle of quality reaffirmation.

1.6Sustaining the Value – Building


relationships:
While MRF banks on its aggressive advertising campaigns to attract customers to its tyres,
Bridgestone pays more attention to the customer’s experience while buying its tyres.
Bridgestone ensures that its potential customer encounters a positive experience at every touch
point (point of contact between the customer and its product).

To ensure this Bridgestone even goes to the extent of insisting that its its dealers must
compulsorily posses automatic wheel alignment and balancing equipments. This ensures that its
customers walk away not only with a good quality tyre, but also a set of perfectly aligned
wheels.

Bridgestone regularly holds camps for its dealers, where the dealers are trained in identifying
customer needs and catering to them.

Bridgestone also introduces special schemes and services for its customers regularly, such as
free car checkups, gifts and complements, and special discounts on services susch as alignment
and balancing.

\
1.7Rating the Marketing Strategies of Bridgestone
and MRF:
This exhaustive study of the marketing strategies of Bridgestone and MRF has made it very
clear that the two companies follow a very different approach to marketing its products. While
Bridgestone appears to prefer the subdued BTL form of promotions, MRF has gone all out on
its aggressive ATL promotion tactics.

Both the strategies seem to be working, though in very different fundamental ways. While
MRF’s aggressive advertising, celebrity endorsements and event sponsorships seem to have
earned it top-of-mind recall and high brand recognition amongst individual customers,
Bridgestone’s focus on quality and dealer incentives seem to have made it extremely popular
with the other two customer segments in the car tyre market: The OEMs and the replacement
dealer’s market.

Both companies can learn a lot from each other’s marketing strategies. While MRF can
improve its dealer incentive programs and also focus on communicating its tyre’s endurance
and strength to OEMs, Bridgestone needs to adapt aggressive ATL promotional methods to
improve its brand recall and brand equity in the minds of individual customers.
REFERENCES

o “Bridgestone tyres: value for money“ (2009). Retrieved


Janhttp://www.bridgestonemotorsport.com/Bridgestone/en-
2, 2010 from
gb/About+Us/
http://www.livemint.com/2009/11/13142836/Bridgestone‐bullish‐on‐
o “Tyre input costs soar“(2009). Retrieved Jan
India.html
2, 2010 from

o “Tyre-Industry“ (2009). Retrieved Jan


2, 2010 from
http://www.scribd.com/doc/6739519/Tyre-Industry

http://www.articlesnatch.com/Article/Overview‐Of‐Indian‐Tyre‐
o “Overview of the tyre Industry “ (2009). Retrieved
Industry/866789
Jan 2, 2010 from

o SBI capital Markets Limited, ”Indian Tyre Industry: An overview”, (2007)


o “Bridgestone Has Helped In Faster Radialisation Of Indian Market””, (2007).
Retrieved Dec 3, 2010 from http://www.financialexpress.com
o CRISIL ratings, “MRF financials” ,(2008)
o “Indian tyre industry: An overview“ (2009). Retrieved Jan 2, 2010 from

Interesses relacionados