2. TYRE INDUSTRY
OVERVIEW
MEN’S ARE FROM MARS..TYRES ARE FROM INDIA! THE
SHOW IS ON ...
The heavyweights like MRF, CEAT, JK TYRES & APOLLO etc
& midsize like METRO TYRES etc & some regional players of
tyre industry cover more than Rs.70 billion of market share in
Indian tyre industry.
3. INTRODUCTION
CEAT International was first established in 1924 at Turino in Italy and
manufactured cables for telephones and railways.
In 1958, CEAT came to India, and CEAT Tyres of India Ltd was
established in collaboration with the TATA Group.
In 1982, the RPG Group took over CEAT Tyres of India, and
In 1990, renamed the company CEAT Ltd.
4. CURRENT SCENARIO
Manufactures over 10 million tyres every year.
Enjoys 55% of the local market for light truck and truck tyres.
Operates from plants in Mumbai and Nasik.
Exports to USA, Africa and other parts of Asia
8. PLACE - DISTRIBUTION
3 different channel process in its Local & Global market
OEM
REPLACEMEN
T TYRES
EXPOR
T
TYRES
OEM’s follow the
B2B sales process
hence they do not
require an
elaborate
distribution
network.
Tyres that are
exported use
the distribution
network of
some other
company
CEAT has one of the largest
distribution network for tyres in
India. It has divided the Indian
sub continent into 33 regions
and has set up a Regional
Office for each region
9. PLACE - DISTRIBUTION
3 level distribution structure
RDC
(Regional Dis
centres)
The tyres, tubes
and flaps are
transported to
these from
factories. The set
is formed at
RDCs and
strapped
CFAs
(Carrying &
forwd
Agents)
The CFAs
pull the
goods from
RDCs
according to
demand
Dealer
FACTORIE
S
(Nasik, Bha
ndup, Halol
guj)
11. Pricing Reduction
Announcement
In Dec 2011, CEAT announced price cuts to the tune of 3- 4 % on its
truck tyres & that was the 2nd round of price cuts announced by CEAT
within a span of 10 days, the first tyre manufacturer to do so.
CEAT believe in giving optimum benefit to its consumers through the six
parameters viz. Quality, Trustworthiness, Credible Image, Value,
Innovative & Understanding Consumers, that is why CEAT has been
rated as the Most Trusted Brand by the upper class as well as lower
class customer
12. PROMOTION
CEAT spends Rs 40-50 crores in a year on various
ATL
BTL
From 1958 CEAT Tyres has successfully held its own.
Tagline ‘Born Tough’ particularly because the rhino logo.
Focus on heavy weight vehicles
13.
14. PROMOTION
While observing ceat marketing strategy we come across various
segment which connect with the latent needs of consumers.
Later ceat come up with new logo focusing youth of country &
passenger segment of market like car owner’s & biker’s with an
emotional touch as showcase of product feature (Grip) as a solution to
real time problem and establish the brand as most relevant tyre brand
to the biker.
Ceat mainly dealt with seminars, campaign type promotional activities
It’s main promotional activities include on-ground consumer meets for
commercial segments, knowledge seminars like CEAT PRO, digital
platforms focusing on cricket(eg. CEAT Cricket Rating and India Road
Transportation Awards is a big frame for them) & Safety Zone activity
for school kids which teaches safe road habits to school children, &
engage with youth through social media & through brand platforms like
www.beidiotsafe.com Post this campaign the sales for CEAT increased
by 40-45% and expecting a similar growth for the next 2-3 quarters.
Heavy pressure being applied by the ever rising input costs & increasing competition
4ps’ plays a vital role in all industry… even main 4ps i.e. product, price, place, promotion are the success gorw of the CEAT
Replacement Tyres : Most challenging Sales and Distribution network is developed for the Replacement Market
Replacement Tyres : Most challenging Sales and Distribution network is developed for the Replacement Market
In actual high competition & new arrival of car… facing difficulties to improve on B2B
1) ATL - (above the line eg. Tv ads (motion types adv)) 2) BTL (below the line (non motion adv) activities.3) From 1958 CEAT Tyres has successfully held its own. Having established itself in the consumers’ minds with its tagline ‘Born Tough’ particularly because the rhino logo. Considering the deteriorating state of Indian roads, the original position of ‘Born Tough’,4) focus on heavy weight vehicles which use for commercial transportation.
