Market Analysis
COMPANY PROFILE
ABOUT COMPANY
● World’s 7th biggest manufacture
● Incorporated in 1972. Its first plant was commissioned in
Perambra, Thrissur, Kerala, India.
● Currently having 4 manufacturing units in India, 1 in Netherlands,
1 in Hungary.
NAME Apollo Tyres Ltd.
Category Tyre Industry
Sector Automobiles
Founded 1972
Headquarters Gurgaon, Haryana, India
Key People Onkar Singh Kanwar (Chairman) & Neeraj Kumar
Revenue ₹ 12,353.77 cr.
Employees 16,000
Tagline Go The Distance
HISTORY
● 1976 Apollo Tyres was registered.
● 1977 1st plant established at Perambra, Kerala, India.
● 1991 2nd plant at Limda, Gujarat, India.
● 1994 Started selling tyres for 2-wheelers.
● 1995 3rd plant at Kalamassery, Kerala, India.
● 2006 Expanded operations outside India by acquiring Dunlop's
Africa operations.
● 2008 new plant at Chennai, Tamil Nadu, India.
● 2009 acquired the Netherlands-based tyre maker Vredestein
Banden B.V. (VBBV)
● 2013 started its Global R&D Centre, Europe in Enschede, the
Netherlands
● 2015 Apollo Tyres bought Germany's Reifencom
● 2015 opened a Global R&D Centre, Asia in Chennai, India
● 2018 the Chief Minister of Andhra Pradesh, N Chandrababu Naidu
laid the foundation stone for Apollo Tyres' ₹1,800-crore tyre
factory in Andhra Pradesh
● 2019 Apollo Tyres opens Thailand’s first Truck Tyre Centre
SWOT ANALYSIS
THREATSSTRENGTH WEAKNESS OPPORTUNITIES
➔Strong brand
image
➔Strong
Financial
performance
➔Emphasis on
research and
development
➔ Weaker
profitability and
margins compared
to the market
leader.
➔ Heavy
dependence on
Indian market
➔Growing Four
Wheeler Industry
in India
➔Expansion in
Two Wheeler
segment
➔Global
Expansion
➔economic
slump in
automobile sector
➔Strong
competition
➔cheaper tyres
in China
➔Rubber growers
coming up with
facilities
➔Volatility in
rubber production
PORTER’S FIVE
FORCES MODEL
PORTER’S
FIVE
FORCES
MODEL
Bargaining
power of
suppliers
Bargaining
power of
buyers
Threat of new
entrants
Competitors
Threat of
substitutes
PORTER’S
FIVE
FORCES
MODEL
➔ Oem’s –Volkswagen Polo,
FORD, Seat Ibiza
➔ Replacement market
➔ Rubber industry - Giugiaro,
Montell
➔ Other petrochemical based
material-Strukrez 9505q, Philip
Carbon black ltd.
➔ JK tyres, MRF,
bridgestone.
➔Integrated rubber in Kerala
Farmer Producer company’
( IRFPC) to manufacture tyres.
➔ Established players like CEAT, JK,
MRF and BRIDGESTONE,
Continental, Goodyear, Delphi,
Bosch, Toyo tire, LLC.
SEGMENTATION
TARGETING
POSITIONING
POSITIONING STRATEGY
● Positioning statement-
Go The Distance
● Advertisement campaign-
Ganga: the river of
people campaign
4 P’s - Product, Price,
Place, Promotion
● PRODUCT ● PRICE
● PLACE ● PROMOTION
4 P’s
● Passenger car tyres include: Radial, Crossply
and SUV
● Light Truck: Radial and Crossply
● Truck and Buses: Radial, Crossply and Kaizen
● Tractors: Dura Tread and Dura Tyre
● Sedan 4300-4500
● Trucks 17000-172000
● 4500 distributors in India including 1200
exclusive Apollo tyre distributors
● 19 state offices across India
● 160 sales and service offices
● 3700 outlets in Europe
● Can deliver anywhere within 24 hours.
● Sachin tendulkar as brand ambassador
● Symbolism of ganga
● Bad Road Buddies
4 P’s
MARKETING
STRATEGIES
ANALYSIS
Marketing Strategies
● Previously the tyre company segmented the market on the basis of load and mileage requirements.
They introduced packaging for two-wheeler tubes and tyres.
● In 2005 Apollo tyres health care clinics in Udaipur and Kanpur was established.
● In 2006 Apollo tyres health care clinic was opened in Ukkadam, Tamil Nadu
● In 2007 Apollo Tennis Initiative and mission 2018 was launched.
Future Marketing Strategies
● Introducing of two new products in the second half of 2019 in North America.
● Apollo Vredestein recently launched its first all weather tire designed for ultra-high-performance
segment, Quatrac Pro.
● The company is investing in another greenfield plant in Andhra Pradesh to strengthen its market share In
India.
● With 6 plants in India and abroad Apollo tyres is set to launch its seventh facility by year end.
MARKET RESEARCH
ANALYSIS
RECOMMENDATION
AND
CONCLUSION
● Penetrate deeper into two wheeler segment as there is a huge market size
for two wheelers in India.
● Apollo should utilize its current brand image and the present market
opportunities to become a global brand and improve its brand perception on
similar lines.
● The company should plan for more promotional programs . they need to be
more aggressive in their product promotion.
● Apollo tyres should capitalize more on tie-up with OEMs and help themselves
achieve a more wider market share.
● Developing future expansion strategies that will aim for low cost production
strategies to help overcome the increasing competition from less expensive
products.
QUESTION
AND ANSWER
SESSION

Apollo Tyres - GO The Distance

  • 1.
  • 2.
  • 3.
    ABOUT COMPANY ● World’s7th biggest manufacture ● Incorporated in 1972. Its first plant was commissioned in Perambra, Thrissur, Kerala, India. ● Currently having 4 manufacturing units in India, 1 in Netherlands, 1 in Hungary.
  • 4.
    NAME Apollo TyresLtd. Category Tyre Industry Sector Automobiles Founded 1972 Headquarters Gurgaon, Haryana, India Key People Onkar Singh Kanwar (Chairman) & Neeraj Kumar Revenue ₹ 12,353.77 cr. Employees 16,000 Tagline Go The Distance
  • 5.
    HISTORY ● 1976 ApolloTyres was registered. ● 1977 1st plant established at Perambra, Kerala, India. ● 1991 2nd plant at Limda, Gujarat, India. ● 1994 Started selling tyres for 2-wheelers. ● 1995 3rd plant at Kalamassery, Kerala, India. ● 2006 Expanded operations outside India by acquiring Dunlop's Africa operations. ● 2008 new plant at Chennai, Tamil Nadu, India.
  • 6.
    ● 2009 acquiredthe Netherlands-based tyre maker Vredestein Banden B.V. (VBBV) ● 2013 started its Global R&D Centre, Europe in Enschede, the Netherlands ● 2015 Apollo Tyres bought Germany's Reifencom ● 2015 opened a Global R&D Centre, Asia in Chennai, India ● 2018 the Chief Minister of Andhra Pradesh, N Chandrababu Naidu laid the foundation stone for Apollo Tyres' ₹1,800-crore tyre factory in Andhra Pradesh ● 2019 Apollo Tyres opens Thailand’s first Truck Tyre Centre
  • 7.
  • 8.
    THREATSSTRENGTH WEAKNESS OPPORTUNITIES ➔Strongbrand image ➔Strong Financial performance ➔Emphasis on research and development ➔ Weaker profitability and margins compared to the market leader. ➔ Heavy dependence on Indian market ➔Growing Four Wheeler Industry in India ➔Expansion in Two Wheeler segment ➔Global Expansion ➔economic slump in automobile sector ➔Strong competition ➔cheaper tyres in China ➔Rubber growers coming up with facilities ➔Volatility in rubber production
  • 11.
  • 12.
  • 13.
    PORTER’S FIVE FORCES MODEL ➔ Oem’s –VolkswagenPolo, FORD, Seat Ibiza ➔ Replacement market ➔ Rubber industry - Giugiaro, Montell ➔ Other petrochemical based material-Strukrez 9505q, Philip Carbon black ltd. ➔ JK tyres, MRF, bridgestone. ➔Integrated rubber in Kerala Farmer Producer company’ ( IRFPC) to manufacture tyres. ➔ Established players like CEAT, JK, MRF and BRIDGESTONE, Continental, Goodyear, Delphi, Bosch, Toyo tire, LLC.
  • 14.
  • 17.
    POSITIONING STRATEGY ● Positioningstatement- Go The Distance ● Advertisement campaign- Ganga: the river of people campaign
  • 18.
    4 P’s -Product, Price, Place, Promotion
  • 19.
    ● PRODUCT ●PRICE ● PLACE ● PROMOTION 4 P’s
  • 20.
    ● Passenger cartyres include: Radial, Crossply and SUV ● Light Truck: Radial and Crossply ● Truck and Buses: Radial, Crossply and Kaizen ● Tractors: Dura Tread and Dura Tyre ● Sedan 4300-4500 ● Trucks 17000-172000 ● 4500 distributors in India including 1200 exclusive Apollo tyre distributors ● 19 state offices across India ● 160 sales and service offices ● 3700 outlets in Europe ● Can deliver anywhere within 24 hours. ● Sachin tendulkar as brand ambassador ● Symbolism of ganga ● Bad Road Buddies 4 P’s
  • 21.
  • 22.
    Marketing Strategies ● Previouslythe tyre company segmented the market on the basis of load and mileage requirements. They introduced packaging for two-wheeler tubes and tyres. ● In 2005 Apollo tyres health care clinics in Udaipur and Kanpur was established. ● In 2006 Apollo tyres health care clinic was opened in Ukkadam, Tamil Nadu ● In 2007 Apollo Tennis Initiative and mission 2018 was launched. Future Marketing Strategies ● Introducing of two new products in the second half of 2019 in North America. ● Apollo Vredestein recently launched its first all weather tire designed for ultra-high-performance segment, Quatrac Pro. ● The company is investing in another greenfield plant in Andhra Pradesh to strengthen its market share In India. ● With 6 plants in India and abroad Apollo tyres is set to launch its seventh facility by year end.
  • 23.
  • 29.
  • 30.
    ● Penetrate deeperinto two wheeler segment as there is a huge market size for two wheelers in India. ● Apollo should utilize its current brand image and the present market opportunities to become a global brand and improve its brand perception on similar lines. ● The company should plan for more promotional programs . they need to be more aggressive in their product promotion. ● Apollo tyres should capitalize more on tie-up with OEMs and help themselves achieve a more wider market share. ● Developing future expansion strategies that will aim for low cost production strategies to help overcome the increasing competition from less expensive products.
  • 31.