LOVELY PROFESSIONAL UNIVERSITY

MITTAL SCHOOL OF BUSINESS

MARKETING MANAGEMENT-1
ASSIGNMENT – 2
APOLLO TYRES Ltd.

Date of Allotment: 09/10/2021

Date of Submission: 25/10/2021
SUBMITTED BY: SUBMITTED TO:
VISHVJEET SINGH PANWAR DR. PAVITAR PRAKASH SINGH
SECTION: Q2141 COURSE CODE: MKTM503
ROLL No: RQ2141A83
 APOLLO TYRES Ltd.

Introduction of the Company

Apollo Tyres Limited is India's largest tyre manufacturer. They specialise in the
production of vehicle tyres and tubes. They are the first Indian tyre business to
open dedicated branded outlets for truck tyres, as well as the first to introduce
radial tyres for the farm market. Apollo Tyres now operates four production
plants in India: two in Kerala (including a leased factory) and one each in Gujarat
and Tamil Nadu. The company has manufacturing facilities in the Netherlands and
Hungary, in addition to India. The business was founded on September 28, 1972.
They began producing in 1977 in the Kerala town of Perambra. The company's
second factory, at Limda, Gujarat, was completed in 1991. Premier Tyres in
Kalamassery, Kerala, was purchased in 1995. In 1996, they opened an unique
tubes facility in Ranjangoan, Maharashtra, and in 2000, they opened an exclusive
radial capacity in Limda. On November 17, 2003, the firm formed a strategic
collaboration with Michelin France to form Michelin Apollo Tyres Pvt Ltd, a joint
venture company that will manufacture dual-branded truck and bus radial tyres in
India. They made India's first H-speed rated tubeless passenger car radial tyres in
2004. They also expanded production capacity of Automobile Tyres and
Automobile Tubes by 1283560 and 414000 units, respectively, and boosted
production capacity by 1466432 and 1567200 units the following year. During the
2005-06 fiscal year, the business established Apollo (Mauritius) Holdings Pvt Ltd
as a wholly owned subsidiary in Mauritius, as well as Apollo Automotive Tyres Ltd
and Apollo Radial Tyres Ltd as wholly owned subsidiaries. PTL Enterprises Ltd
ceased to be a subsidiary company in the same year. In addition, the corporation
restructured its connection with Michelin, exiting the joint venture Michelin
Apollo Tyres (P) Ltd. During the 2005-06 fiscal year, the company raised
manufacturing capacity of Automobile Tyres and Automobile Tubes by 1045632
and 1379360 units, respectively, and increased production capacity by 888340
and 218440 units the following year. During the 2007-08 fiscal year, they raised
their automobile tyre production capacity by 836620 units. As a result, the overall
capacity for automobile tyres and tubes has grown to 9659232 units and 6741000
units, respectively.
Dunlop Tyres International (Pty) Ltd South Africa was bought by the firm on April
21, 2006. They raised their Camel Back/Pre Cured Tread Rubber manufacturing
capacity from 217000 to 220000 units in 2006-07, and then to 248040 units the
following year. With effect from July 4, 2007, the business established Apollo
Tyres AG Switzerland as a wholly-owned subsidiary. Also, with effect from
December 21, 2007, two subsidiaries, Apollo Automotive Tyres Ltd and Apollo
Radical Tyres Ltd, were desubsidiarized. In May 2008, the company established
Apollo Trust in Salem, Tamil Nadu, as their first full-service branded commercial
vehicle tyre station. In September 2008, Apollo Tyres introduced the XT-100K, a
cross-ply tyre with unrivalled performance. On the outskirts of Chennai city,
Apollo Tyres formally launched its 9th global tyre manufacturing operation and
the 4th in India on February 10, 2011. At the moment, the Chennai facility
manufactures 7000 passenger car and 1300 commercial vehicle tyres each day. At
full capacity, the terminal will be able to produce 16000 passenger car and 6000
commercial vehicle tyres each day. On May 30, 2011, Apollo Tyres announced the
opening of India's only full-service commercial vehicle store, the Apollo
Commercial Vehicle (CV) Zone, in Sanjay Gandhi Transportnager, on the outskirts
of Delhi. On June 14, 2011, Apollo Tyres announced its entry into the Sri Lankan
market through a partnership with Ideal Motors, the Ideal Group of Companies'
vehicle distribution and marketing arm. Apollo Tyres will initially concentrate on
passenger vehicle, cross-ply truck, and light truck tyres. This will be gradually
expanded over time to incorporate the whole Apollo product range now supplied
in India, including truck, bus, radial agriculture, and off-highway tyres as needed.
Despite difficult circumstances, Apollo Tyres stated on May 10, 2012 that its
consolidated revenue reached US$ 2.5 billion in the 2011-12 fiscal year. Apollo
Tyres announced the launch of its global R&D centre in Enschede, the
Netherlands, on January 14, 2013. This cutting-edge facility will act as a focus for
the development and testing of car and van tyres for all of the company's product
brands, including Apollo Vredestein and Dunlop (32 African nations). Apollo Tyres
opened its sales office in Bangkok on May 2, 2013, to serve the entire ASEAN
area, with Thailand as the operational hub. The ASEAN region has steadily grown
into one of Apollo's most important export markets outside of India, accounting
for more than 40% of the company's revenue. Apollo Tyres and Cooper Tire &
Rubber Company (NYSE: CTB) announced the completion of a final merger
agreement on June 12, 2013, under which Apollo's wholly-owned subsidiary will
acquire Cooper in an all-cash transaction valued at over Rs 14500 crore. Cooper
stockholders will get $35 per share in cash under the terms of the agreement,
which has been unanimously authorised by the boards of directors of both
businesses. Cooper's 30-day volume-weighted average price was 40 percent
higher at the time of the transaction. Cooper The world's 11th-largest tyre firm by
sales, Cooper Mastercraft Starfire Chengshan Roadmaster, and Avon, was formed
in 1914 and provides premium and mid-tier tyres globally through renowned
brands including Cooper Mastercraft Starfire Chengshan Roadmaster and Avon.
The combined firm will be the world's seventh largest tyre manufacturer, with a
significant presence in high-growth end markets on four continents. The
combined firm will have a broad variety of brands and a higher ability to fulfil
client needs globally, with total revenues of $6.6 billion in 2012. The transaction is
likely to boost Apollo's earnings immediately. Apollo Tyres announced the
completion of a transaction with Sumitomo Rubber Industries (SRI) on December
2, 2013, in which SRI purchased Apollo Tyres South Africa (ATSA), including the
Ladysmith passenger car tyre plant and the Dunlop brand rights that Apollo had in
32 African countries, for US$ 60 million. The Durban facility, which produces Truck
& Bus Radial (TBR) and Off Highway tyres (OHT) for the mining and construction
industries, is still owned by Apollo. Apollo Tyres will continue to market Apollo
Vredestein and Regal branded tyres throughout Africa following the completion
of this deal, while also focusing on expanding and enhancing its sales and
distribution network across the continent. Apollo Tyres announced the launch of
its premium European brand Vredestein in India on December 5, 2013. Multi-
branded stores, including existing Apollo Zones, would sell these premium tyres.
Apollo Tyres announced its entry into the expanding Qatar market in the Middle
East area on February 26, 2014. A product presentation to Qatar's Business
Partners was included in the entry.
1. For the selected product from your allocated company, the segmentation
basis used by the company. Critically evaluate about whether the company has
been able to accurately segment its market for the said respective product or
not ? Justify your answer/opinion.
- The Endurance LD is a Tyre manufactured by Apollo Tyres Ltd. In terms of
important categories, demand for Medium & Heavy Commercial Vehicle
(M&HCV) tyres fell by 12%, despite a phenomenal 16 percent growth in FY19. PV,
the other major segment, saw a 3% year-over-year decline.
- As a result, they want to grow their business while also guaranteeing that the
customers who buy it get the best possible product. As a result, they want to
grow their business while also guaranteeing that the customers who buy it get the
best possible product. Apollo Tyres Ltd's price is low enough that a wider number
of people can afford it than its competitors. People also purchase it because of
the company's brand name and reputation in the country. Apollo Tyres Dealer
Showrooms in India.
- Apollo Tyre Ltd has four manufacturing units in India, two in South Africa and
two in Zimbabwe. Apollo Tyre has a network of around 4,500 dealerships in India,
of which over 3,000 are exclusive outlets and nearly 230 multi-brand Dunlop
Accredited Dealers in South Africa and Zimbabwe.
- Apollo Tyre product line includes brands like -Passenger Car - Radial, Crossply
and SUV, Acelere Wheelz, Light Truck - Radial and Crossply, Truck and Bus -
Radila, Crossply and Kaizen, Farm, Speciality, DureTread, Dure Tyre.

- The most crucial factor to consider when purchasing a tyre is the rubber
substance utilised in its construction. It is in charge of the tyre's traction and
treadwear characteristics. If you get a tyre constructed of high-quality materials,
the tyre's traction and speed rating will be excellent. It also aids in gaining a firm
grip on your vehicle. The B2B corporate marketing platform might be directed at
marketing managers who want to increase productivity and show their superiors
how valuable they are. Anyone considering acquiring Apollo Tyres should think
about the quality of the tyre. High-quality items are now preferred over data-
driven products.
 2. For the selected product, identify the Target market strategy being used by
the company. Clearly give justification of your answer.

- Apollo tyres main segmentation is automobile and industry equipment

manufacturers/ OEMs. Their current focus is on Radial and Tubeless types of tyres
for passenger cars and vehicle segments.

- The target is towards passenger cars, LCV, HCV, SUVs, Agricultural and off the
road vehicle manufacturers as well as users and service providers.

- Apollo tyres provide a wide range of tyres that caters to various needs for
passenger and commercial vehicles. It also provides high performance, high
quality, durability and safety. The consumer’s state Apollo Tyres as Value for
money because of its high level of technology employed in the products. Apollo
tyres use Benefit positioning, which emphasizes the functional benefits of the
tyres and stresses the communication more on long life, stability and how good
their service is, which also ensures the customer gets the best from their tyres.
Apollo's major goal is to grow tyre sales as well as other Apollo goods like flaps
and tubeless tyres. They use the following marketing methods to achieve this:
• The traditional method of marketing i.e. Newspaper, tv ads and billboards.
• Pricing the products less than the competitors.
• For increasing awareness and contributing towards social as well as
environmental issues of the world, they build a foundation to carry out CSR
activities.
• By adapting the modern method of marketing, they started using unique hashtags
for each of their campaigns.
• They also promote safety measures to take while driving in their ad campaigns.

- They recently partnered with Sachin Tendulkar for a television commercial,

with music by A.R. Rehman. Sachin and the Ganga river were depicted in the
campaign as a spirit that propels India ahead. This was linked to their brand
essence of "go-to-distance."

- They also use a very inventive cinematic approach to market their new product
launches in order to entice clients to buy it. There are a lot of adverts like this. If
you want to see the commercials, go to the Apollo Tyres channel on YouTube.
3. For the selected product, what is the positioning strategy used by the
company i.e. what are the POP’s and POD’s of your identified product? Clearly
give justification of your answer.

Define POP’s and POD’s for your identified product

Brand leadership, image, value, and trust, as well as brand innovation and
equity, have all been maintained by Apollo Tyres Ltd. In the market, it has
assumed a premium position. Their product is available in a variety of shapes
and sizes. They provide high-quality raw materials and can bear extremely big
loads while also adding beauty to the product thanks to their smooth profile and
shape. Their designs are one-of-a-kind yet intelligent and innovative, and they
last a long time. People want this brand because of the quality, affordability, and
ability of its products, which have earned millions of people's trust.

Under applicable securities laws and regulations, Apollo Tyres Ltd.'s performance
could be regarded "forward-looking statements." The actual outcomes, however,
may differ greatly. Economic conditions, price conditions, demand or supply in
both domestic and foreign markets, as well as environmental changes,
government regulations, laws statutes, incidental variables, and court
pronouncements are all essential aspects that might affect the company's
operations.

4. Identify a company that you feel / understand is the biggest competitor to

your allocated company for the type of products identified by you. Critically
analyse how this competing company is fairing against your company in terms
of STP (Segmentation, Targeting and Positioning?

- Apollo Tyres' biggest competition, in my opinion, is MRF Tyres, because both

companies believe in providing the greatest quality product to their clients. Both
companies have the same target demographic and are well-positioned in the
market, according to the STP. Apollo Tyres employees rated their Work-life
balance 1.3 higher than MRF Tyres employees rated theirs. Apollo Tyres
employees rated their Senior Management 0.8 higher than MRF Tyres
employees rated theirs. Apollo Tyres employees rated their Culture & Values 1.0
higher than MRF Tyres employees rated theirs.
 - Apollo aims to surpass MRF as India's largest tyre manufacturer by 2021. MRF
made Rs 15,837 crore in income in 2018-19, while Apollo tyres made Rs 12,354
crore. Apollo, on the other hand, has exceeded the local tyre industry in terms of
growth, with a CAGR of 12.6 percent over the last three years.

- In India's Rs 63,000 crore ($9 billion) domestic tyre sector, a fight for
domination is building. Apollo Tyres, situated in Gurugram, has thrown down the
gauntlet to long-time market leader MRF Tyres Ltd, aiming to overtake it and
become India's largest tyre manufacturer by March 2021.

- "We are already market leaders in the CV segment, which is India's most
profitable tyre segment." Satish Sharma, President, Asia Pacific Middle East and
Africa at Apollo Tyres, says, "We also have a lead in the passenger vehicle OE
segment." "MRF is the market leader in the aftermarket segment. They're also
the market leaders in the two-wheeler segment, which we entered a few years
ago.

- Apollo Tyres Ltd.- "In a like-for-like comparison, we are still ahead. MRF makes
between Rs 4,500 and Rs 5,000 crore from their two-wheeler sector, whilst we
only make a few hundred crores. If you take that out of the equation, we're
already ahead of them "Added he.

5. Looking at evolving customer needs identify a market segment which is not

being catered to by your company or by the competitors but if served can prove
to be a profitable? Identify a new product opportunity keeping in mind the
existing business category of your company? Give reasons regarding to why
your company should venture into serving the new identified segment?
- I believe this will be profitable for the company since they will be able to reach a
bigger number of customers, both low- and high-income, and everyone should
have access to high-quality products. It will also provide a fantastic opportunity
for the company to expand, as well as enabling customers to use high-quality
products.
- In terms of volume, the corporation holds a near 30 percent share of the OE
passenger vehicle segment in the country, and a 16 percent share of the much
larger aftermarket category. In India, this replacement industry accounts for
roughly 70% of the passenger car tyre business. Over the following two years,
Apollo hopes to raise its market share to 20%. It has a roughly 20% market share
in the passenger car tyre sector.
- With the implementation of BS VI emission standards on April 1, 2020, the tyre
maker believes it will be able to further strengthen its leadership position in that
category. BS VI will direct manufacturers' attention away from classic bias tyres
and toward more efficient radial tyres.
- "We've been in the forefront of the country's radialization of this section. The BS
VI emission standards will help this even more, which will be beneficial to us
"Sharma stated his opinion. "MRF is lagging behind in this area and is attempting
to catch up. Radial tyres currently account for 70% of the OEM industry and 50%
of the aftermarket sector. When the BS VI standards are implemented, the OEM
segment will become entirely radialized. That will be beneficial to us."
- So, based on my research, the points I've given below will prove to be incredibly
profitable, as they will reach out to new and diverse customers in a variety of
geographic regions, while taking into account market segmentation and customer
income.