MRF is India's largest tyre manufacturer with a 22% market share. It was established in 1946 and initially produced toy balloons before entering tyre manufacturing. Over time, MRF has expanded its product lines, increased production capacity through new plants, and strengthened its distribution network across India and overseas. To compete, MRF sponsors various sports like cricket and differentiates its tyres based on attributes like durability, grip, and mileage. It aims to provide high quality products at affordable prices. MRF has maintained its market leadership through strategic expansions, collaborations, and investments in branding.

1. 1 A Dossier On MRF
A Dossier On
Prepared By: Amarjeet Singh Koushik Rakshit Namita Pandey Roma Agrawal

2. 2 Early history of the brand and its evolution over time MRF
1 Early history of the brand and its evolution over time
1.1 About the Brand MRF MRF is a major player in manufacturing tyres, located in Chennai. The name is abbreviation of "Madras Rubber Factory Limited". Main products of MRF are tyres, toys, Sports goods, Conveyor Belt, paints & Coats. But MRF is mainly involved in making vehicle tyres. It is the largest tyre manufacturing company not only in India but also worldwide. It exports to more than 65 countries. MRF tyres are manufactured in six interdependent manufacturing units which built over 450acres and 15000 dedicated people. MRF holds the highest market share of 22% in terms of sales volume in the tyre industry. Few key attributes of MRF [Courtesy: Wikipedia]:
1.2 History of the brand and its evolution MRF established in 1946 as a small toy balloon manufacturing unit at Tiruvottiyur, Chennai. In 1952 MRF ventured into the manufacture of tread. The quality of the product was so high that by close 1956 MRF had become the market leader with 50% share of the tread-rubber market in India. In 1961, MRF entered into tyre manufacturing in collaboration with the Mansfield Tire & Rubber Company of USA .In 1963 Pandit Nehru cut the ribbon for Rubber Research Centre at Tiruvottiyur. In 1964 India tried to export its tyres to overseas for the first time. The famous logo of MRF muscle man was born at this time only.

3. 3 Initial positioning and subsequent repositioning MRF
By the end of 1964 it becomes the first Indian company which exported the tyre technology to US. In 1973 MRF introduced nylon passenger car tyres commercially. MRF made a turnover of 1 Billion Dollars. Slowly they keep on increasing their factories in different cities of South of India and gaining the control over market. In 1989 they collaborated with Hasbro International USA and launched Funskool India. In 1989 they collaborated with Vapocure polyurethane paint formulations and with Pirelli for MUSCLEFLEX Conveyor & Elevator Belting. In 1989 company first time come in support of cricket by sponsoring tournament for Jawaharlal Nehru trophy. In 1990 won a boxing championship. The logos on jersey of player gave them a huge medium of marketing and popularity. In 1997 MRF entered into F3 car industry. MRF launched ZSLK tyres – the first eco friendly tyre. MRF commissioned its seventh Plant at Ankanpally (A.P) in 2011.It won the JD power award for the 10th time. MRF's Aero Muscle becomes the only Indian tyre to be chosen for the legendary fighter jet - Sukhoi 30 MKI in 2013 and the history continues…

4. 4 Initial positioning and subsequent repositioning MRF
2 Initial positioning and subsequent repositioning
2.1 Product Positioning Positioning is defined as the way by which the marketers attempt to create a distinct impression in the customer's mind. Being a homogenous product there is not much difference in products offered by competing tyre manufacturer. Still MRF has tried to focus on High Quality, High Endurance, Brand Loyalty and Stronghold in the replacement. MRF communicates to the customer its superior endurance and strength. The company sponsors a number of sports such as cricket and rally racing, to position its tyres as high endurance and sporty. It has framed a slogan “Tyres we race, are the tyres you buy” stands testimony to their category membership. Tyre with Muscles Logo 2013 MRF Challenge Cricket Kit Their positioning statement: “Tyre with muscles” 2.2 Positioning Strategy MRF has always tried to differentiate them by doing different kind of experiments. In case of tyres they have tried to maintain some Points of Parity, such as quality, safety; tread design, economy etc. MRF tyres use benefit positioning in which they basically talk about functional benefit of the tyre by stressing upon high quality, stability, long life, replacement. They ensure every customer gets best product (tyres) for their vehicle. MRF believes in providing best to its customers: Core Value: “Delivering high quality products to the customers” Emotional Benefit: “Enjoying safe and comfortable driving” Functional Benefit: “Stability, Long life, High Performance”

5. 5 Advertising, Sales promotion and Segmentation strategy followed MRF
3 Advertising, Sales promotion and Segmentation strategy followed
3.1 Advertising MRF uses advertising world very innovatively. They invests heavily on print, TV and outdoor media, to drive its brand into the minds of the customer. MRF is known for designing some of the most creative ads ever made for an Indian tyre company. Its mascot, the MRF muscleman along with its slogan “Tyres with muscle” was once one of the most recognizable advertising campaigns in advertising history. MRF takes care to promote its tyres as tough, reliable and high endurance by contributing into many sports, rallies and products like cricket bat. To reach to the ground level Indian customers, MRF has chosen most famous sport in India to sponsor. It has chosen below stars as their brand ambassadors: Also, we all know about the MRF pace foundation which is a coaching clinic for training fast bowlers from all over the world. This was created by MRF Limited with the help of former Australian legendary fast bowler Dennis Lillee. [Courtesy: Wikipedia] MRF ZVTS is positioned as the "Most Comfortable Radial". The position has been consistent in the entire 14 year history of the brand. In the initial years, the brand was endorsed by Sachin Tendulkar. The brand used the imagery of a small child enjoying the drive, car floating in the air etc. This imagery has been consistent in the brand's communication and has effectively communicated the positioning clearly to the consumers.

6. 6 Advertising, Sales promotion and Segmentation strategy followed MRF
3.2 Sales Promotion Replacement Strategy: Tyres are responsible for many factors such as dependability, brake handling, safety and mileage of your vehicle. The warranty of MRF tyres is given for 3 years against manufacturing defect and they promise for replacement in this scenario. The replacement strategy helps in attracting more number of customers. MRF introduces festival offers, consumer discounts and other sops through its dealer outlets. These offers to customers are called sell out schemes to give its customers a unique experience while shopping tyres for their vehicles.
3.3 Segmentation In tyre Industry there is not much interaction between the company and the customers. Tyre companies mostly sell to dealers in replacement market and OEM‟s. Therefore market segmentation for the tyre Industry is based on type of vehicle served rather than the individual customer. Below tree shows the division based on type of vehicle:
The major categories for which MRF produces tyres are mentioned below: 1. Heavy duty truck/bus 2. Light truck 3. MUV/RCV/passenger car 4. Motor sports 5. OTR 6. Military service 7. Farm service

7. 7 Analysis of product and generic competition to the brand MRF
8. Fork lift 9. Two/three – wheeler
MRF manufactures tyres for all segment of the tyre market including passenger vehicle, commercial vehicle, Farm vehicle, Industrial vehicle. The complete market coverage of its product has MRF undisputed leader in the overall Indian tyre Industry. Below table shows the target customers and purpose of MRF on a broader level: PRODUCT TARGET PURPOSE Passengers Cars Middle Income Family Durable, Excellent mileage Two Wheelers Low income family, and bikers Sharp Cornering capability, wet traction and better steering Heavy Commercial Vehicle Truck Drivers Better road grip and improved traction Light Commercial Vehicle Cargo Cooler running and wheel fitment Farm Vehicle Farmers Farm and haulage design, Self cleaning property 4 Analysis of product and generic competition to the brand
4.1 Products of MRF MRF produces many types of tyres. Each type has many sub-types as well. All the types and sub-types have unique tread design; they have given for the specific purpose. Some of the popular tyres are and the common feature possess by each type are as follows: 1. Heavy Duty Truck/Bus Tyres:

8. 8 Analysis of product and generic competition to the brand MRF
This tyre is very strong and durable that as this is used in heavy vehicles. This makes vehicle in better road grip and also increases the mileage of the vehicle 2. Light Truck Tyres: This is also very strong and durable. It also helps in increasing mileage. But its extra strong casing (the middle design) makes it provide a better grip on high roads. 3. MUV/RCV/Passenger Car Tyres: This is used by ultra light truck category. Extra strong casing is provided by MRF to these tyres so that driving becomes extra smooth, extra safe. This give a great support to driver on the wet road, it prevents from skidding.

9. 9 Analysis of product and generic competition to the brand MRF
4. Tyre for Motor Sports: These are designed with asymmetric pattern (both ends of tyres on circumference will be different) and reinforced side walls makes it puncture resistant. Large gaps in casing provides extra grip in wet mud and on hard dry gravelly land. 5. Farm Services: These have knife action type‟s lugs which help them in better penetration and cleanability. These are very rigid, cut free and have very long lasting life. MRF produces different types of front and rear tyres of this variety named as Shakti Front and Shakti Rear with unique specification.

10. 10 Analysis of product and generic competition to the brand MRF
6. Military services: These are designed as per their usage. They have high voids so that they can easily run on soft and sandy terrain. They are high weather resistant. One of this category named as “sand master” have almost plain design to make them run on plain surface. 7. Fork Lift: These have aggressive pattern which provides optimum ride comfort, grip and life-comfort balance. They are just maintenance free.

11. 11 Analysis of product and generic competition to the brand MRF
8. Two/three wheeler: This type has variety of features. The common features possess by all sub-types are good and wet traction, better steering, provide good mileage and better grip. 9. Off the road/earth Movers:
These have excellent pulling power in both the directions (forward and backward), have strong and bruise resistant, heat has no effect on this type. This type is measure of strength.

12. 12 Analysis of product and generic competition to the brand MRF
4.2 Competitors MRF is giving tough competition to its peer brands. Below table clearly shows that, MRF is much ahead of all of them. [Courtesy: Money Control (data collected based on share price on 24/07/2014)]

13. 13 Analysis of product and generic competition to the brand MRF
4.3 Market Comparison among few Competitors
Below is the pie chart showing the net profit of MRF and its other competitors for last 1 year.

14. 14 Analysis of product and generic competition to the brand MRF
MRF Continues to rule the Indian Tyre Market clearly shown by above data [Courtesy: Money Control (data collected based on share price on 26/07/2014)] The global tyre market is expected to reach $187 billion in the next five years; an expected compounded annual growth rate (CAGR) of 4%. The Indian tyre industry, which accounts for about 5% of demand

15. 15 Strategies adopted over time by the brand to tackle competition or prime market expansion MRF
worldwide, is dominated by key players, such as MRF, Apollo, CEAT, JK, Goodyear, Bridgestone, TVS etc 4.4 Basis of Competition Tyre is something which is very homogeneous, there might be very slight difference based on brands. Below are some of the points that consumers follows while selecting a tyre and that forms the basis of competition: 1. Tyres for sports vehicles 2. Which brand affects the mileage of the vehicle 3. Price is the one that matter with the quality of the product 4. Durability of the tyres. 5. Grip during the rainy and monsoon seasons.
5 Strategies adopted over time by the brand to tackle competition or prime market expansion
MRF undoubtedly has made an appreciable global presence and to keep the presence intact they have constantly moved with the time to deliver their best. Being an Indian company they understand the value of money from the perspective of an Indian mindset. They adopted some strategies over the time in order to tackle competition from peers like Bridgestone, Apollo, CEAT, TVS etc.  Unlike Bridgestone and Apollo who focuses only on four-wheelers, MRF has paid attention to the needs of two-wheelers, heavy-duty trucks which helped them to gain customers‟ confidence. When customers of this category were getting quality tires from MRF at an affordable price, other competitors in these categories were absent at that time. This made people brand loyal to MRF.
 In the year 1989, MRF grew in recognition by means of collaboration. As a result it offered the customer a great new experience by opening “MRF Tiredrome”, India‟s first Tire Company owned wheel care complex at Madras.
 The next strategy they adopted was the opening of T&S (Tires and Sales) store in the country. Designed like a modern store with all creature comforts, T&S stocks the entire range of MRF tires and employ company trained technicians to provide the entire gamut of tire and wheel related services that the owners of modern cars require.
 Their participation in the ARPC rallies in 2001-05 and victories in the same, made them more visible.

16. 16 Strategies adopted over time by the brand to tackle competition or prime market expansion MRF
 They not only pleased humans but mother nature as well by making Eco-friendly tires: ZSLK tires in the year 2007.
 MRF‟s strategies were not limited only to the grounds, because MRF‟s Aero Muscle became the only Indian tire that was chosen for the fighter jet SUKHOI 30MKI.
 MRF‟s strong presence in the replacement tire market has allowed it to cope better than rivals with the slowdown in the Indian automotive industry.
 In MRF Pretreads System, to ensure high quality MRF pre-cured the tread rubber first in MRF‟s factory then uses them. Today, MRF have expertise for this and are emerged as Mileage leader.

17. 17 Distribution strategy followed by the brand MRF
 MRF has a strong brand loyalty in the replacement market and it gets three-fourth of its revenue from the replacement market that is more profitable.
 MRF also puts a lot of stress when it comes to advertising. During the last fiscal year ending September 2012, MRF spend Rs 120 crore on advertisements whereas in case of Apollo tires it shrunk from Rs 154 crore in FY09 to Rs 95 crore in FY13.
 Advertising through the medium of sports specially cricket is another effective way to reach the mass. Some of the sports person who was a part of this idea is Sachin Tendulkar, Brian Lara, Virat Kohli, Shikhar Dhawan etc.
By adopting all these strategies, MRF managed to be one of the bullish shares in last 5 years. [Courtesy: Money control]
6 Distribution strategy followed by the brand
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 in the market. Distribution Strategy: MRF has one of the largest tyre distribution channels in India. It has divided the Indian subcontinent into 33 regions and has setup a Regional office in each region. MRF has three level distribution structures.

18. 18 Distribution strategy followed by the brand MRF
The basic structure comprises of the following:
1. Factory: The factory supplies goods to the RDCs (Regional Distribution Centers) and from these RDCs the goods are transferred to CFAs (Carrying and Forwarding Agents).MRF has manufacturing units at following locations:
1) Tiruvottiyur, Chennai 2) Kottayam, Kerala 3) Usgao, Goa 4) Arakkonam , Tamil Nadu 5) Medak , Andhra Pradesh 6) Pondicherry
2. Divisional Distribution Centers: The DDC (Divisional Distribution Centre) is used for Storage and Assembly of tyres, Tubes and Flaps from the plant.
3. Regional Distribution Centers: MRF has divided Indian subcontinent into 33 regions and set up a Regional Office for each region.

19. 19 Summary regarding the future directions for the brand MRF
4. Carrying & Forwarding Agents: These acts as depots/warehouses for distribution to the dealers. Carrying and forwarding agents (C&FAs) are attached to them. Often the larger regions have 2 or3 or more C&FA‟s to cover the region properly.
5. Dealers
6. Over 2500 sales outlets all over India
7. Over millions of customers in India as well as in foreign.
6.1 Export to Overseas
It was a very challenging year for MRF with the global markets showing very clear signs of a slowdown resulting in over supply and prices going on a downward spiral. MRF had overall supply issues more in terms of strategically servicing the continuing domestic after-market demand and deciding to maintain the excess volumes in the line with the previous years. In spite of these factors, export revenues posted a nominal growth of 1% over the previous year. MRF was awarded the “Highest Export Award [Auto Tyre Sector]” by All India Rubber Industries Association yet another time during the period under review.
7 Summary regarding the future directions for the brand
MRF already has a huge customer base worldwide. It should ensure customers by guaranteeing them that their products and services (Tyres, Funskool and pace foundation) are designed to fight with Indian weathers and roads. However, MRF‟s promotional strategy should focus more on the need of the Heavy duty truck and bus driver. This is mainly because a majority of its sales comes from Heavy and Light Commercial Vehicles. The Indian driver measures this value for money in many ways:
 through improved mileage,
 lower maintenance cost,
 improved safety,
 higher average life,
 and improved drive comfort
They have to make changes in their promotion platform. That is the kind of strategizing that keeps a brand alive in today‟s competitive.

20. 20 References MRF
8 References
Data and Information Collected from following references:
1. http://en.wikipedia.org/wiki/MRF_Limited
2. http://www.mrftyres.com
3. http://www.moneycontrol.com/competition/mrf/comparison/MRF
4. http://www.thehindu.com/sport/cricket/gambhir-named-mrfs-brand-ambassador/article15135.ece
5. www.scribd.com/