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MRF TYRES                                         Presented by:                                         Swapnil Chaudhari ...
Introduction• The company, MRF Ltd., originally started as a  small manufacturing unit of balloons, latex cast  squeaking ...
Facts• In 1961 the Madras Rubber Factory Private  Limited was converted into a public company.• Additional capital was iss...
Facts• The Company was identified as `Star  Exporter, a status that enables the company to  get priority treatment in seve...
Facts• MRF Tyres has signed an OEM (original  equipment manufacturer) alliance with various  automobile giants.• Funskool,...
Products• Tyres     Muechen International Business School   6
Products• Conveyor belts     Muechen International Business School   7
Products• Pretreads     Muechen International Business School   8
Products• Industrial Paints and Coatings     Muechen International Business School   9
Plant locations in india•   Tiruvottiyur, Chennai•   Kottayam, Kerala•   Usgao, Goa•   Arakkonam, Tamil Nadu•   Medak, And...
INDUSTRIAL MARKETING• Industrial marketing consists of all activities  involved in the marketing of products and  services...
Industrial Demand• The demand for industrial products and  services does not exist by itself. It is derived  from the ulti...
Customers   Muechen International Business School   13
FIVE FORCES MODEL   Muechen International Business School   14
Muechen International Business School   15
KEY COMPETITORS   Muechen International Business School   16
RAW MATERIALS   Muechen International Business School   17
• Number of Suppliers – Low• Availability/ acceptability of raw material  substitutes – Low• Switching costs – High• Threa...
BARGAINING POWER OF BUYERS•   OEM’s                                       High•   In Replacement Market                   ...
THREAT OF POTENTIALENTRANTS• LOW, due to HIGH ENTRY BARRIERS•   Highly capital intensive industry    Rs4bn for radial tyre...
Buyer-Seller Relationship• The most important part of buyer-seller  relationship is the interection between a buyer  and s...
Various types of transactions       based on style and content               Compatible Style                        Incom...
Product Life Cycle          TUBELE          SS                            CROSSFLATLES                     PLYS           ...
Major Sales Segments
Demand Categories
Pricing new product• Skimming strategy .   Selling a product at a high price, sacrificing high sales to gain a high profit...
Distribution Channels• MRF has one of the largest tyre distribution  channel in India. It has divided the indian  subconti...
ADVERTISING•   Various ads in Televisions•   Billboards•   Sponsors to various racing events•   Sport accessories         ...
Muechen International Business School   29
Muechen International Business School   30
Muechen International Business School   31
Muechen International Business School   32
Muechen International Business School   33
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45907503 mrf-tyres

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45907503 mrf-tyres

  1. 1. MRF TYRES Presented by: Swapnil Chaudhari Akshay Kumath Rahul Banwani Muechen International Business School Kushal Rastogi 1
  2. 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 Muechen International Business School 2• It began the manufacturing of tyres in 1961.
  3. 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. Muechen International Business School 3
  4. 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. Muenchen International Business School 4
  5. 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 worlds largest toy company Hasbro Inc., USA. Muechen International Business School 5
  6. 6. Products• Tyres Muechen International Business School 6
  7. 7. Products• Conveyor belts Muechen International Business School 7
  8. 8. Products• Pretreads Muechen International Business School 8
  9. 9. Products• Industrial Paints and Coatings Muechen International Business School 9
  10. 10. Plant locations in india• Tiruvottiyur, Chennai• Kottayam, Kerala• Usgao, Goa• Arakkonam, Tamil Nadu• Medak, Andhra Pradesh• Pondicherry Muechen International Business School 10
  11. 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. Muenchen International Business School 11
  12. 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 Muechen International Business School 12
  13. 13. Customers Muechen International Business School 13
  14. 14. FIVE FORCES MODEL Muechen International Business School 14
  15. 15. Muechen International Business School 15
  16. 16. KEY COMPETITORS Muechen International Business School 16
  17. 17. RAW MATERIALS Muechen International Business School 17
  18. 18. • Number of Suppliers – Low• Availability/ acceptability of raw material substitutes – Low• Switching costs – High• Threat of forward integration – High Muechen International Business School 18
  19. 19. BARGAINING POWER OF BUYERS• OEM’s High• In Replacement Market Moderate• Switching Cost Low• Threats of Backward Integration Low Muechen International Business School 19
  20. 20. THREAT OF POTENTIALENTRANTS• LOW, due to HIGH ENTRY BARRIERS• Highly capital intensive industry Rs4bn for radial tyre plant with a capacity of 1.5mn tyres Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres• High raw material costs Muechen International Business School 20
  21. 21. Buyer-Seller Relationship• The most important part of buyer-seller relationship is the interection between a buyer and sales representative.On the basis of it there are two factors are:1. The content of information – includes product features,prices ,services,as well as individual needs of buyer and seller.2. The style of interaction –includes mannerisms and the format used by buyer and a seller in their communication. Muechen International Business School 21
  22. 22. Various types of transactions based on style and content Compatible Style Incompatible StyleCompatiblecontent Ideal Transaction Inefficient TransactionsIncompatiblecontent Inefficient Transactions No Transactions Muechen International Business School 22
  23. 23. Product Life Cycle TUBELE SS CROSSFLATLES PLYS RADIAL
  24. 24. Major Sales Segments
  25. 25. Demand Categories
  26. 26. 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 customers interest and establishing a foot-hold 26
  27. 27. 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 Muechen International Business School 27
  28. 28. ADVERTISING• Various ads in Televisions• Billboards• Sponsors to various racing events• Sport accessories Muechen International Business School 28
  29. 29. Muechen International Business School 29
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