Automobile Tyre Ppt 01

8/9/2019 Automobile Tyre Ppt 01

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Revival strategyfor

Automobiletyre


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Overview

The Indian Tyre industry: 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 manufacturers account for over 95%

of the total tonnage production of 11.35 lakh M.T. It

produces all categories of tyres, except Snow Tyresand Aero Tyre for which there is no demand

domestically.


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Indian tyre Industry

Indian tyre

industry

Passenger

vehicles

Commercial

vehiclesOthers

MHCV HCV LCV Farm

VehicleOTR

Industrial

vehicle

CarsMotor

Cyclesscooters


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Introduction ToughTires

Though Tyres, Ltd. engages in the manufacture and marketing

of various bias ply tyres and now with Silica radial tyres . It

offers products for two and three wheelers, passenger cars,

Jeep , light commercial vehicles , and farm vehicles. Thecompany was Incorporated in 1990 and is based in Kerala,

India. As Tough Tyres Ltd Get the toughest out of it.

Wherever you are if you are looking for tyres we are never far

away.


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Vision ission ofTough

VISION-TO BE AMONGST THE MOST ADMIRED COMPANIES IN INDIA AND

WORLD WIDE COMMITED TO EXCELLENCE.

MISSION-BE A CUSTOMER OBSESSED COMPANY

NO. 1 TYRE BRAND IN INDIA

MOTIVATED AND COMMITED TEAM

DEV

LOPMENT FOR HIGH PERFORMANCE ORGANISATION


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Our Goals

At Tough, we are committed to protecting and

respecting the environment.

Leading vehicle manufacturers use our tyres as original

equipment because they trust and respect our quality,development techniques and innovation.

However, this alone is not enough. We must also meet

the demands of the environment by adopting

sustainable practices and using our resources more

efficiently.We practice the latest manufacturing and management

techniques and work only to the highest standards as

outlined in international standards.


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Reasons for downturn


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Manufacturing Process


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Material Used In Tyres

Materials used:

Rubber (Natural and synthetic) 38%

Fillers (Carbon black, silica, carbon chalk) 30%

Reinforcing materials (steel, rayon, nylon) 16%Plasticizers (oils and resins) 10%

Chemicals for vulcanization(sulphur, zinc

oxide, various chemicals) 4%

Chemicals as antioxidants to counter ozone

effect and material fatigue 1%Miscellaneous 1%


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Bias Construction V/SRadial

Construction of tires


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Advantages

Longerlife

Better steering control

Lowerrolling resistance

Better gripat higher speeds

Radial tyres

Flexibility in the tire

Smoothride on rough surface

Bias Tyres


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For 3 Wheelers & 2 Wheelers

LCV


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Products manufactured For

carsAcelere H/V speed rated

Excellent handling at high speeds

Optimum wet and dry performance

Low external and in-cabin noise levels

for a comfortable ride

Acelere sportz

V/W speed rated with superb wet and dry performance and exceptional driving pleas

Innovative asymmetric tread pattern for maximum performance

Special silica tread compound for better fuel economy and wet performance

Rim protector

W/Y speed rated with a quick steering response

for a sporty performance

Unidirectional V-shaped tread design resists aquaplaning

Execellent handling at high speeds

Special silica tread compound for better fuel

Amazer xl/T speed rated

Reinforced tyre construction for long life

Visual alignment indicator for detecting

Especially designed for low noise


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Products forTractors


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Demand Cycle


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Major Players and Market

Share


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Enviorment AnalysisSocio Cultural

Environment

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.

Higher car density per familyThe 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 Brand Strategy Analysis 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.

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.


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Swot AnalysisStrengths Right products, quality and

reliability.

Superior product performance vs.

competitors.

Brand Image

Products have required

accreditations.

High degree of customer

satisfaction.

Weakness Not very popular in the

international market

Delivery-staff need training.

Customer service staff need

training.

Processes and systems, etc

Management cover insufficient.

Opportunities Profit margins will be good.

Could extend to overseas.

Could seek better supplier deals. An applied research centre to create

opportunities for developing

techniques to provide added-value

services

ThreatsVulnerable to reactive attack by

major competitors. Lack of infrastructure in rural areas

could constrain investment.

High volume/low cost market is

intensely competitive.


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Sales Policy

Sales advance scheme

Credit Terms

Prompt payment discountCash discount

Quarterly Turnover discount


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NewStrategy

We at tough are using silica instead of carbon black

because it will improve the

durability of tyres.

Tough has worked on repelenishment of the stock.

We have also brought in promotions with offers such

as wheel-pe-deal.


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PromotionalStrategies

The company will be heavily investing on print, TV and outdoor

media, to drive its brand into the minds of the customer.

Regularly introducing festival offers, consumer discounts and other

sops through its dealer outlets. These offers to customers are called

sell out schemes

Freebies with every tyre purchase worth Rs.1000 for car, bike,

tractors or autorickshaws, LCV.

Free Tyre and battery check ups every 3-4 months

Publicizing through highly visible events such as Motor Sports . And

endoresements through common man.

Recommendation through word of mouth by garages and mechanics

Providing mobile garage for just company tyre owners at evry 30

kms

Display through automobile expos


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ProductCore 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.

The Basic product:

The basic product that all tyre manufacturers offer, is a tyre that fits the customers

VehicleThe 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.


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Product

Contd..

As per the customer wants we at tough offer all the following

Tough differentiates itself from the competition, by offering tyres

that exceed the customers quality requirements, ride comfort and

value for money. We ensure that our tires meet international qualitystandards, last much longer (thus giving more value for money),

and performs smoothly and quietly (ride comfort). it stresses on the

durability of its tyres on rough Indian roads.These are the three

pillars that Tough differentiates itself on.


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Pricing strategy

Penetration

Pricing

We have set a low price to increase sales and marketshare.

CostRecovery

Where in atleast the cost incurred is recovered


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Pricing strategy

Using the Markup pricing method

The tyre industry being a very raw material

intensive industry, the input costs mainly decides

the price of tyres. In fact, 90% of a tyres costcomprises 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 tyres production cost.

Following the leaders pricing initially


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Placing strategyOnce 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.

We will be using push as well as pull strategy

Direct and Indirect Channels of Distribution

Direct channels:

Direct channels consist of a marketer selling directly to the final customer.

Of the three types of customer segments in the Passenger Car Tyre market, two

customer segments call for a direct channel:

a) OEMs :

Given the huge quantities required and the Just In Time logistics employed,OEMs source their tyre supplies directly from manufacturers. Tyre

manufacturers therefore most set up exclusive distribution channels to service

these OEMs.

b) Exports:

To minimize logistical complexities and supply delays, Tyre exports are

handled directly by the manufacturers. Tyre manufacturers set up direct

distribution channels that supply tires directly to export destinations


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Placing StrategyIndirect channels:

Indirect channels consist of one or more intermediaries between the manufacturer and the final customer.

The Replacement market segment of the tyre industry caters to individual customers. It therefore

requires wide reach and deep market penetration. The distribution channel for replacement market

comprises of the manufacturer, warehouses/ C&F (carry & forward) agents, and the dealers. The Tyre is

finally sold to the customer by the dealer.

INDIRECT CHANNEL

(FOR THE TYRE REPLACEMENT

SEGMENT)

Manufacturer

Warehouse/ C & F

agent

Dealer

Consumer


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Placing Strategy

E-commerce

Through automobile company websites

will be placing our product in the market

Though service station websites will bedisplaying our product


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THE GOLDEN RULES FOR TYRE SELECTION

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

of passenger.

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

vehicle.

3. Use the lowest ply rating-this does not apply in the case of

steel cord Radial Truck tyres.

4. Recommend the correct Tyre Pressure for the Tyre size Ply

rating, Load and operating

condition.

5. This pressure should ideally be as low as possible, without

under inflating the tyres.


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DishaDhanesha

Deepali PardeshiRajesh Kurmi

Shrikant Yadav

Chandan

Nagar Priyanka Vartak

Shehzad ButtRohit

Pipalwa

Documents

Automobile Tyre Ppt 01