MRF Tyres Strategy Analysis
The company, MRF Ltd., originally started as a small manufacturing unit of balloons, latex cast squeaking toys and industrial gloves.
A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).
The company established its first office in 1949 at Chennai
It began the manufacturing of tyres in 1961.
2. Introduction
• The company, MRF Ltd., originally started as a
small manufacturing unit of balloons, latex cast
squeaking toys and industrial gloves.
• A young entrepreneur, K. M. Mammen
Mappillai, opened a small toy balloon
manufacturing unit in a shed at Tiruvottiyur,
Madras (now Chennai).
• The company established its first office in 1949
at Chennai
• It began the manufacturing of tyres in 1961.
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3. Facts
• In 1961 the Madras Rubber Factory Private
Limited was converted into a public company.
• Additional capital was issued in order to start
the manufacture of automobile tyres and tubes
in collaboration with the Mansfield Tire &
Rubber Co., Mansfield, Ohio, U.S.A.
• The Company was given permission to export
tyres having Mansfield trade mark to all world
markets except U.S.A. and Canada.
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4. Facts
• The Company was identified as `Star Exporter',
a status that enables the company to get
priority treatment in several areas concerned
with customs.
• MRF became the first tyre company in India to
cross the INR 10 billion mark in 1993
• The Company has received the Top Export
Award for the year from All India Rubber
Industries Association in 1995 and has been
receiving the same regularly since then.
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5. Facts
• MRF Tyres has signed an OEM (original
equipment manufacturer) alliance with various
automobile giants.
• Funskool, the No. 1 toy company in India, is a
joint venture between MRF tyres and the
world's largest toy company Hasbro Inc., USA.
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10. Plant locations in india
• Tiruvottiyur, Chennai
• Kottayam, Kerala
• Usgao, Goa
• Arakkonam, Tamil Nadu
• Medak, Andhra Pradesh
• Pondicherry
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11. INDUSTRIAL MARKETING
• Industrial marketing consists of all activities
involved in the marketing of products and
services to organizations that use product and
services ,in the production of consumer or
industrial goods and services ,and to facilitate
the operations of their enterprises.
• Eg: MRF markets its tyres to various
automobile giants like Maruti, Tata Motors,
Honda,etc.
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12. Industrial Demand
• The demand for industrial products and
services does not exist by itself. It is derived
from the ultimate demand for consumer goods
and services . Therefore Industrial demand is
also called Derived demand.
• Eg. Net sales of MRF tyres was Rs 3274.37
crores in the year 2008-09
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SWOT Analysis
• Company has remained in no.1 position
in tyre industry
• They have 6 manufacturing facilities in
India (all in south) in proximity of rubber
belt of India
• It enjoys strong brand equity and loyalty
of customers
strengths
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Complete product portfolio with tyres for all types of
vehicles-heavy duty vehicles, SUVs, small & luxury cars
It enjoys strong brand equity and loyalty of customers.
Strong financial position
Weakness
Intense competition due to presence of other global
brands
Volatility in industrial relations. Ex: the labour unrest
19. Opportunity
• Emerging markets and growth of automobile industry
• More tie-ups with Automobile companies as it’s mainly
into B2B market.
• Horizontal and concentric Diversification.
Threats
• 1.Price wars
• 2. Stiff competition from national and
international brands
• 3. Cheaper technologies
20. Pricing new product
• Skimming strategy .
Selling a product at a high price, sacrificing high sales to gain a high
profit, therefore ‘skimming’ the market. Usually employed to
reimburse the cost of investment of the original research into the
product.
• Penetration strategy
The price is deliberately set at low level to gain customer's interest and
establishing a foot-hold in the market.
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21. Distribution Channels
• MRF has one of the largest tyre distribution
channel in India. It has divided the indian
subcontinent into 33 regions and has setup a
Regional office in each region.
• The basic structure comprises of the following:
• Factory
• Divisional Distribution Centers
• Regional Distribution Centers
• Carrying & Forwarding Agents
• Dealers
• Over 2500 sales outlets all over India
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22. MARKETING STRATEGIES
• Publicity campaigns & promotional
methods
• Pioneered the practice of heavy
advertising and promotion in the
tyre industry
• MRF differentiates itself from the
competition, on its two pillars of
High Quality and Endurance.
23. ADVERTISING
• Various ads in Televisions
• Billboards
• Sponsors to various racing events
• Sport accessories
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