This document analyzes the Indian tyre industry and Apollo Tyres' environmental scanning efforts. It discusses key factors like economic growth, transportation needs, and major players that influence tyre demand. Original equipment and replacement segments are major sources of demand. The analysis informs Apollo's marketing strategy to ensure sufficient production during economic booms and geographic diversification in recessions. Future directions suggested include targeting the new rural market and increasing sales through consumer education programs tailored for farmers.

1. APOLLO TYRES
LEARNING FROM ENVIRONMENTAL
SCANNING

2. PURPOSE OF CASE STUDY
• To track & identify
opportunities & threats in
the macro-environment.
• To assess the importance
of demographic, economic,
political & technological
factors.
• To get an idea of sustaining
& growing in changing
business scenario.

3. THE INDIAN TYRE INDUSTRY
*TYRE INDUSTRY SIZE - Rs 13,000 CRORE
*THE FORTUNE DEPENDS ON –
1. Agricultural and industrial performance
2. Transportation needs
3. The production of vehicles

4. MAJOR KEY PLAYERS
• MRF
• APOLLO TYRES
• CEAT
• JK RUBBER
• MODI RUBBER
• KESORAM INDUSTRIES
• GOODYEAR INDIA
• DUNLOP
• FALCON
• TCIL
• METRO TYRES

5. SEGMENT-WISE TYRE DEMAND
Three segments of tyre demand-
1. ORIGINAL EQUIPMENT MAKERS(OE)-
* MAJOR SOURCE OF DEMAND in passenger car
market, two wheeler and tractor segments.
*60% of the total demand formed by OE segment in
passenger car market.
*50% contribution of OE in two wheeler and tractor
segments.

6. 2. REPLACEMENT-
*PRIMARY driver of demand.
*Demand hinges on the automobile output in
recent past.
3. EXPORTS-
*Accounts for less than 10 percent of total demand.

7. ECONOMY AND TYRE DEMAND
RELATION
• ECONOMIC GROWTH- INCREASE IN GOODS TRANSPORT
AND MORE MOBILITY resulting in increasing public
transport.
• Transport is A MAJOR CONTRIBUTOR TO THE ECONOMY in
its own right.
• Good transportation- vital to the movement of goods &
services, direct impact on economic growth & productivity.
• CONCLUSION: THE ECONOMIC GROWTH INCREASES
TRANSPORT REQUIREMENT WHICH ULTIMATELY IMPACTS
AND INCREASES THE DEMAND OF TYRES

8. EFFECT OF MACRO ECONOMIC
ANALYSIS ON MARKETING STRATEGY
• Economic growth has a cascading effect on macro environment & impacts
consumers resulting in increased disposable income, purchasing power &
other cultural changes.
• Development of ECONOMETRIC MODEL to determine the demand of tyres
based on the changes in macro & economic environment.
• Tyres generally have low elasticity of demand.
• During BOOM PERIOD the Company has to ensure the production is
enough to keep in pace with demand in OE segment.
• In RECESSION PERIOD the company has to ensure that it diversify into
other geographical areas as export account only for 10% of demand.

9. TWEAK & ADJUSTMENT STRATEGY
• IMPORTS FROM FOREIGN
COUNTRIES- Lower costs
for the tyre industry as
export import policy allows
free import of all types of
new tyres & tubes.
• TIE UP’S WITH SUPPLIER :
Since raw material costs
accounts for 70% of price of
product, company can
engage into long term
contacts with natural
rubber traders.

10. • VERTICAL INTEGRATION: Further
company can also vertically
integrate by buying rubber
plantation. This would help
companies to reduce cost of
production which can be passed
onto consumer and therefore be
beneficial for company to tap
price sensitive replacement tyre
market.
• FORWARD INTEGRATION:
Companies can tie up with car
manufacturers, by offering them
trade discounts to make Apollo
Tyres preferred supplier.

11. FUTURE DIRECTION FOR APOLLO TYRE
• Regarding future direction, taking initiative in NEW RURAL MARKET would
be a good option.
• Presence of rivals like JK TYRES would encourage healthy competition and
better value delivery .
• Tractor & two wheeler segment contributes to 50% of the total demand.
• Increase in agricultural production would lead to more demand of
tractors.
• May introduce colored tyres – green or tornado green to gain
differentiation.
• Increment in sales could be achieved by consumer education program –
*To Spread awareness about need for care & maintenance to receive
maximum returns from tractor tyres.
* Adhering to the customer centric approach, informing & educating the
new rural segment, given the kind of soil & weather , so that they can
arrive at the right choice of tyres.

13. MADE BY
• AMREEN SHAHID
• RAMA SANGAL
• MEGHA MAHESHWARI
• POOJA CHOUDHARY
• NEHA JINDAL
• YAMINI SONI