TYRE INDUSTRYOVERVIEW MEN’S ARE FROM MARS..TYRES ARE FROM INDIA! THESHOW IS ON ... The heavyweights like MRF, CEAT, JK TYRES & APOLLO etc& midsize like METRO TYRES etc & some regional players oftyre industry cover more than Rs.70 billion of market share inIndian tyre industry.
INTRODUCTION CEAT International was first established in 1924 at Turino in Italy andmanufactured cables for telephones and railways. In 1958, CEAT came to India, and CEAT Tyres of India Ltd wasestablished 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.
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
4P’s of CEAT
PRODUCTCEAT has inner tubes, flaps & the widest range of tyres in all categoriessuch as Passenger Tyres - Cars, Motorcycle & Scooter tyres Auto-rickshawtyres. Farms Tyres - Tractors, Trailers etc Heavy duty tyres - Heavy-duty Trucks and Buses, Light CommercialVehicles, Earthmovers & Forklifts,
PLACE - DISTRIBUTION3 different channel process in its Local & Global marketOEMREPLACEMENT TYRESEXPORTTYRESOEM’s follow theB2B sales processhence they do notrequire anelaboratedistributionnetwork.Tyres that areexported usethe distributionnetwork ofsome othercompanyCEAT has one of the largestdistribution network for tyres inIndia. It has divided the Indiansub continent into 33 regionsand has set up a RegionalOffice for each region
PLACE - DISTRIBUTION3 level distribution structureRDC(Regional Discentres)The tyres, tubesand flaps aretransported tothese fromfactories. The setis formed atRDCs andstrappedCFAs(Carrying &forwdAgents)The CFAspull thegoods fromRDCsaccording todemandDealerFACTORIES(Nasik, Bhandup, Halolguj)
Pricing ReductionAnnouncement In Dec 2011, CEAT announced price cuts to the tune of 3- 4 % on itstruck tyres & that was the 2nd round of price cuts announced by CEATwithin a span of 10 days, the first tyre manufacturer to do so. CEAT believe in giving optimum benefit to its consumers through the sixparameters viz. Quality, Trustworthiness, Credible Image, Value,Innovative & Understanding Consumers, that is why CEAT has beenrated as the Most Trusted Brand by the upper class as well as lowerclass customer
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
PROMOTION While observing ceat marketing strategy we come across varioussegment 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 anemotional touch as showcase of product feature (Grip) as a solution toreal time problem and establish the brand as most relevant tyre brandto the biker. Ceat mainly dealt with seminars, campaign type promotional activities It’s main promotional activities include on-ground consumer meets forcommercial segments, knowledge seminars like CEAT PRO, digitalplatforms focusing on cricket(eg. CEAT Cricket Rating and India RoadTransportation Awards is a big frame for them) & Safety Zone activityfor school kids which teaches safe road habits to school children, &engage with youth through social media & through brand platforms likewww.beidiotsafe.com Post this campaign the sales for CEAT increasedby 40-45% and expecting a similar growth for the next 2-3 quarters.