FUELING

SALES
GROWTH
SUBMITTED BY
TEAM REAL MADRID
 Introduction

• CEAT(Cavi Elettrici e Affini Torino) Sales in India

International was established in 1924, 4
4 MRF
• Manufactured cables for telephones and 4
Apollo
31
railways. 9 JK
CEAT
• Entered Indian market in 1958.
Balkrishna
• RPG Group took over CEAT tires of India in 13 TVS

1982, headquartered in Mumbai. Good Year

Others
• CEAT produces over 15 million tires a year.
14 21
 CEAT in Delhi

• Delhi is the largest car tire market. Current Car tire Sales in Delhi
• It has largest population of cars.
10.8
CEAT
• Accounts for almost 16% of the car tire MRF
30.4
sales in open market. Bridgestone
Apollo
• Currently, CEAT has almost 11% share of JK
30.1
Yokohama
car tire sales in Delhi.
Michelin
• Target is to hit 15% market share by 3 Others
2.5 5.2
March 2020 and 25% by March 2023.
9.2 8.7
 Issues

• Under cutting by the CEAT Shoppe's to the retailer

• This inevitably arose complications for the CEAT as they are unable to expand.
• No tubeless tires for 4 wheelers
• No attention to Eco Friendly Tires
 Introduction of Tubeless Tires in 4-Wheelers

• Tubeless tires are pneumatic tires that do not require a

separate inner tube.
• Its doesn’t puncture easily, thus it is reliable and durable.
• Lower tire pressure gives you better control and a smoother ride.
• It is fuel efficient, provides better safety and cost effective.
• Automotive Tubeless Tire Market was valued at $132 billion in
2016, and is projected to reach $198 billion by 2023, growing
at a CAGR of 6.2% from 2017 to 2023.
• The 4-wheeler segment is expected to grow at a significant
CAGR of 6.4%.
• Introduction of 4-wheelers tubeless tires can easily help in
boosting CEAT market share.
 Price Undercutting

Ways to tackle the problem

• Can introduce a clause against undercutting hinting at serious consequences if not followed by
the CEAT Shoppe
• Advt. regarding the same on social media websites
• Creating an extension on the website for reporting the same.
• Providing an Email, Phone & Chat options for registering a complaint
• Creating awareness & encouraging local retailers to such Wrong doings.

Price undercutting through
sharp discounting reduces profit margins, as would
a price war, and will cause profits to fall.
Stage-1
Offering goods below its costs in order of pricing its
competitors out of the market
Stage-2
[Only arises in case the dominant firm succeeded
with squeezing the competitors out of the market]
Dominant firm charges monopoly prices in the effort
to cover their losses
 Eco friendly tires

• Green Technology is advancing faster than anyone expected it to.

• Latest innovations in green tire technology, their recent designs
focus mainly around sustainability which would, in turn, reduce
waste.
• The green tire’s design is both light and aerodynamic, providing a
great addition to the green vehicles continuously emerging each
year.
• More than 700 million tons of rice is harvested worldwide according
to UN and disposing these rice husks is an environmental challenge
• Husks are burned to generate electricity and reduce the amount of
waste shipped to landfills.
 Eco friendly tires

• Silica is mixed with rubber in tire treads to increase the rubber’s strength and help reduce rolling
resistance.
• Can have a positive impact on a tire’s traction on wet surfaces
• Improves fuel economy up to 10%.
 Additional Methods

OFFER FINANCING
• what about the people who can’t afford the product? You can still sell to customers who are down on
OPTIONS TO
CUSTOMERS their luck by starting your very own no-credit financing program

• Customers can find tires in any number of stores, but you want yours to be the most memorable and
MAKE YOUR
BUSINESS EVENTFUL
exciting. Host customer-attracting events periodically
AND NEWSWORTHY

• Making Rishabh Pant, International cricketer from New Delhi as the brand ambassador of CEAT will lead
Brand Ambassador
to increase in sale of tires in Delhi. .

• According to Consumer’s Report, customers are much more likely to buy tires in sets of two and four.
REGULARLY ADVERTISE Make the extra push to discount sets of four tires and rigorously market your special prices
SALES AND
DISCOUNTED SETS
 Increasing Market Share to 13%

Dealers selling CEAT tires Old sale Estimated Revised Sale

Ravi tires (CEAT Shoppe) 1464 1538 ESTIMATIONS
tires Emporium 620
Hina tires 620 • By employing these Methods the
Savera tires 620
Krish tires 620 Estimated sale of the Old Tire sales
Bhadra tires 86 91
Rama tires Mart (CEAT Shoppe) 2605 2735 would Rise by Approximately 5%
Central Automobile 410 430
Mahesh tires 10 11 • These new Methods would Ensure the
Tabhi tires (CEAT Shoppe) 1866 1959
Times tires 620 entry of at few new sellers (5 sellers who
Ravi tires (CEAT Shoppe) 1681 1765
Quality tires 33 35
sold most number tires for MRF) and
Amarjeet tires (CEAT Shoppe) 1380 1449
Gudi tires
Nehru tires Shop
29
134
32
140
would sell at least half of the old mean
Best tires (CEAT Shoppe)
All other CEAT Shoppe: No of dealers
1038
1905
1088
2000
sale. (Approximately 620)
All other CEAT dealers: No of Tires potential 4726 4962
Total Sale 17367 21335
 Increasing Market Share to 13%

Total CEAT Old sale

Total CEAT Estimated
Revised Sale
Total tires sold in Delhi
(all companies) Potential Estimated Car Tire Sales
17367 21335 160409 in Delhi
Potential Estimated Total Market Share (in
Old Market Share (in %) Market Share (in %) %)
13.3 CEAT
10.83 13.30 100% MRF
30.4 Bridgestone
Under
cutting Apollo
solution
JK
Yokohama
28.7
Michelin
Will lead to
increase in Others
Tubeless
tires
Market
Additional
Methods
3
share to 13
%
2.5 5.2
9.2 7.7
Eco-
Friendly
tires
Thank You