MRF Ltd. started as a small toy balloon manufacturing unit in 1949 and began manufacturing tires in 1961. It is now a major tire manufacturer in India with multiple plant locations. MRF produces tires, conveyor belts, pretreads, and industrial paints and coatings. It has key OEM customers like Maruti, Tata Motors, and Honda. MRF faces competition from other major Indian tire manufacturers like CEAT and Apollo. It has established a large distribution network across India to market its industrial and automotive products.

1. MRF TYRES
Presented by:
Swapnil Chaudhari
Akshay Kumath
Rahul Banwani
Muechen International Business School Kushal Rastogi 1

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
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• It began the manufacturing of tyres in 1961.

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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6. Products
• Tyres
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7. Products
• Conveyor belts
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8. Products
• Pretreads
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9. Products
• Industrial Paints and Coatings
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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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13. Customers
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14. FIVE FORCES MODEL
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16. KEY COMPETITORS
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17. RAW MATERIALS
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18. • Number of Suppliers – Low
• Availability/ acceptability of raw material
substitutes – Low
• Switching costs – High
• Threat of forward integration – High
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19. BARGAINING POWER OF BUYERS
• OEM’s High
• In Replacement Market Moderate
• Switching Cost Low
• Threats of Backward Integration Low
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20. THREAT OF POTENTIAL
ENTRANTS
• 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
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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.
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22. Various types of transactions
based on style and content
Compatible Style Incompatible Style
Compatible
content Ideal Transaction Inefficient Transactions
Incompatible
content Inefficient Transactions No Transactions
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23. Product Life Cycle
TUBELE
SS
CROSS
FLATLES PLY
S RADIAL

24. Major Sales Segments

25. Demand Categories

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
customer's interest and establishing a foot-hold 26

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
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28. ADVERTISING
• Various ads in Televisions
• Billboards
• Sponsors to various racing events
• Sport accessories
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