INTRODUCTION

One of the greatest needs of managers of business is to understand and develop marketing

programs for their products and services. Business success is based on the ability to build a

growing body of satisfies customers. Modern marketing programs are built around the

“marketing concept” which directs managers to focus their efforts on identifying and satisfying

customer needs – at a profit.

In present situations of intense competition, and extreme dynamism, companies all over

the world are turning their focuses on to their customers. “Sellers market” concept has been

replaced and “customer is god “concept is of major prime. Earlier goods and services were in

short supply and this helped the seller to call the shots. But situations changed with the advent of

globalization. Today, marketers are directing the total transformation in the way the customers

being perceived. Today, marketers are directing their efforts in retaining the existing customers

and maintaining the customers’ base rather than acquiring new customers. The focus of

marketers is on integrating three elements –people, service and marketing.

Customers can “make or break” a company in today’s world because of the inherent

value of his/her command in the market. So the responsibility of every organization is to ensure

uniform satisfaction levels among its customers. One single dissatisfied customer will pass on

the message to at least nine others sparking off a chain reaction and a spell doom for the

company. Research has shown that acquiring new customers can cost 5 times more than the cost

involved in satisfying and retaining existing customer.

Concept of taking customers for granted is no longer applicable. The idea of product

safety, quality, service and product appeal has brought over many changes. The “caveat- emptor”

attitude of manufactures has been replaced with “caveat-venditor” attitude. The Government

policies on liberalization globalization and privatization along with a series of defense

mechanisms for customers like the customers’ protection laws, regulation of the government, the

powerful hands of the organization, customers’ courts, switching to substitute or competitors that

offer at competitive prices, etc is the major reason for the changes we perceive in the market.

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INDIAN TYRE INDUSTRY

In the present world, Tyres play an important role in the field of transportation. Tyres are

the workhorses for the mobile society in which we are currently living in. A great deal of public

attention has been provided to this very important commodity. Tyre manufacturers will be

working to bring about much greater uniformity in all aspects if performance.

The Indian tyre industry comprises of 40 companies in the organized and unorganized

sectors and is divided into two tiers:

Tier-I players[top 5 tyre companies] account for over 80% of industry turnover

containing a well diversified product mix and presence in all three major segments, i.e.

replacement market , original equipment manufacturers and exports.

Tier-II companies are small in size, concentrating chiefly on production of small tyres,

tubes and flaps and the replacement market. The industry has negligible market share in

commercial vehicles tyre category and is around 20% in the two wheeler tyre category.

The Rs.20,000 crore Indian Tyre Industry is highly raw material intensive and

predominantly a Cross Ply or Bias tyre manufacturing industry. It produces all categories of tyres

except Snow tyre and Aero Tyre for which there is no demand domestically. While the tyre

industry is mainly dominated by the organized sector, the unorganized sector holds sway in

bicycle tyres. The major players in the organized tyre segment consist of MRF, Apollo Tyres,

CEAT and JK Industries, which account for 63 per cent of the organized tyre market. The other

key players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7

per cent and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited

(TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the

industry. MRF, the largest tyre manufacturer in the country, has strong brand equity. While it

rules supreme in the industry, other players have created niche markets of their own.

Truck and bus tyres account for over 65% of tyre industry turnover in India. Hence

demand for the above two is the true indicators of performance of Indian economy in general and

also the tyre industry in India. Indian Tyre Industry provides direct and indirect employment to

nearly 1 million or more people taking in to account the dealers, retreaders, growers of natural

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rubber, employment in raw material sector etc. The sector is raw-material intensive, with raw

material accounting for 70% of the total costs of production. Total production figures in

tonnage: 11.35 lakh MT & total production of tyres in all categories: 811 lakh (2007-08).

Current level of radialization includes 95% for all passenger car tyres, 12% for light commercial

vehicles and 3% for heavy vehicles (truck and bus. Restrictions were placed on import of used

/retreaded tyres since April 2006. Import of new tyres & tubes is freely allowed, except for radial

tyres in the truck/bus segment which has been placed in the restricted list since November 2008.

Total value of  tyre exports from India is approximately Rs 3000 crore (2007-08) .The major

factors affecting the demand for tyres include the level of industrial activity, availability and cost

of credit, transportation volumes and network of roads, execution of vehicle loading rules,

radialization, retreading and exports.

Evolutionary Phases of Tyre manufacturing in India

Phase Period Characteristics Policy regime

Phase I 1920-35

No domestic production. Demand

met through imports. Key players

included Dunlop , Firestone and

Goodyear

Liberal imports

Phase II

1936-60

Domestic production begins by

erstwhile trading companies:

Dunlop, Firestone, Goodyear and

India Tyre & Rubber Company

Imposition of tariff & non-tariff

barriers on imports

Phase III 1961-74

Indian companies-MRF, Premier &

Incheck- enter manufacturing sector

with foreign technology; licensing of

additional production capacity

Regulation on capacity

expansion and repatriation of 

profits of foreign companies;

enforcement of export obligation

on MNC; protection from

external competition

Phase IV 1975-91

Entry of large Indian business

houses like Singhania & Modi &

technical collaborations with MNCs,

De-licensing of production,

placing of imports under OGL

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introduction of radial tyres, vertical

integration and exponential growth

in tyre production & exports

with tariff & non-tariff barriers

Phase V 1992 onwards

External trade liberalization &

reduction in import duty; re-entry of

MNCs either independently or in

collaboration with Indian capital

Progressive reduction in import

duty; liberalized imports

COMPANY PROFILE – APOLLO TYRES

Apollo Tyres straddles the Indian tyre industry much like the Greek Sun God Apollo's

four horse-drawn chariot races across the vast expanse of the sky, symbolizing the creation of

light, hence knowledge and truth. And like the Greek charioteer, Apollo Tyres has stood the test

of time on the four pillars of vision, integrity, quality and sheer determination.

The history of Apollo Tyres dates back to 1974 when it was incorporated as a company in

Cochin, Kerala through the purchase of a license from the Ruby Rubber Works. Cochin by Mr.

Mathew T. Marattukalam, Jacob Thomas and his associates. In 1976, the company was taken

over by Dr. Raunaq Singh. Apollo's first manufacturing facility (often referred to as the 'mother

plant') is in Perambra, Cochin where production commenced in 1977 with an installed capacity

of 420,000 each of tyres and tubes.

The first 20 years of the company's existence were not easy. Those were times when

licenses and quotas ruled the world of manufacturing in a market dominated by multinational

companies with access to technology and machinery and deep pockets.

Therefore, soon after its inception, due to the huge investments required, Apollo wiped

out its net worth and became a BIFR (Board of Industrial and Financial Construction) company

during the Emergency years. However, Apollo Tyres was returned to its owners during the

Janata Government.

Apollo then used to make the entire gamut of tyres required for scooters, bicycles, trucks

and cars. However, the then core team, led by Onkar Singh Kanwar, realized that to make an

impact in the market and become financially viable it had to become a dominant player in the

commercial vehicles segment. At the time, Modi Tyres had an overwhelming market share and

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reputation. Extensive on-ground research by the team allowed it to understand the areas in which

Apollo could make an impact.

The philosophy then was 'one product fits all', where regardless of the kind of usage, the

tyres truckers fitted on their vehicles were the same. Team Apollo decided to known as the

'overload' segment and produce tyres which could withstand the extra load the vehicles were

made to carry, while providing drivers with the crucial safety net. It was a tyre called the

Hercules which was the first of its kind. Later, products like Amar, Loadstar and XT-7, XT-9 and

XT-9 Gold were introduced, products still enjoy consumer validation. In fact, XT-9 is the only

tyre in India to have sold more than one crore units, providing the superiority of the product.

In later years, there have been many such first in Apollo's cap. Apart from enjoying the

distinction of being the first tyre company to segment the market on the basis of load and

mileage requirements, it has been the first to introduce packaging for car tyres and tubes and also

the very first Indian company to introduce farm radial tyres. Among other innovative moves,

Apollo is the first tyre company to run customer loyalty and awareness programmes to enable

them to derive optimal benefits from their Apollo farm tyres, and also the first to launch

exclusive rural retail stores 'Apollo Tyre World' for truck tyres. Apollo tyres Ltd. has another

first to its credit being the first Tyre Manufacturing Company Worldwide to be certified for

B7799 given for information security of IT systems.

Another landmark has been the successful implementation of SAP across the

organization for better results and productivity.

1975 Inception

1975 Registered as a company

1977 First plant commissioned in Perambra (Cochin, Kerala)

1991 Second plant commissioned in Limda (Baroda, Gujarat )

1995 Acquired Premier Tyres in Kalamassery (Cochin, Kerala)

1996 Exclusive tubes plant commissioned in Ranjangaon (Pune, Maharashtra)

2000 Exclusive radial capacity established in Limda

2000 Established Apollo Tyres Health Care Clinic for HIV-AIDS awareness and

prevention in Sanjay Gandhi Transport Nagar, Delhi

2003 Expansion of passenger car radial capacity to 6,600 tyres/day

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2004 Production of India 's first H-speed rated tubeless passenger car radial tyres

2004 Support in setting up India 's first Emergency Medical Service in Baroda ,

Gujarat

2005 Apollo Tyres Health Care Clinics in Udaipur in Rajasthan and Kanpur in

Uttar Pradesh

2006 Expansion of passenger car radial capacity to 10,000 tyres/day

2006 Expansion of passenger car range to include 4x4 and all-terrain tyres

2006 Acquired Dunlop Tyres International in South Africa and Zimbabwe

2006 Opening of Apollo Tyres Health Care Clinic in Ukkadam, Tamil Nadu

2006 Launch of DuraTread, treading material and solutions

2006 Launch of India's first range of ultra-high performance V and W-speed rated

tyres

2007 Launch of Regal truck and bus radial tyres

2007 Launch of DuraTyre, retreaded tyres from Apollo

2007 Launch of the Apollo Tennis Initiative and Mission 2018

2007 Apollo diversifies into transport and logistics

2008 Awarded the Gold Certificate for its manufacturing units at India

Manufacturing excellence awards

2008, the company opened their first full-services branded commercial vehicle

tyre outlet called Apollo Trust in Salem, Tamilnadu

2008 Established a plant in Hungary

2008 First ever ultra size Off-The-Road [OTR] tyre from Limda Plant

2009 Acquisition of 100% shareholding control of Vredestein Banden B.V.,

Netherlands

2009 commisioning of Chennai green field manufacturing facility

2010 Launch of habitat apollo

VISION

“To be a significant player in the global tyre industry and a brand of choice, providing

customer delight and continuously enhancing stakeholder value.”

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VALUES

Care for customer

Respect for associates

Excellence through teamwork

Always learning

Trust mutually

Ethical practices

“PASSION IN MOTION “ is apollo’s journey towards excellence.It revolves around 3 key

pillars of people quality and technology using th rigour of six sigma methodology across all

functions

GROWTH PROSPECTIVE IN INDIA

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CRITICAL STRATEGIES ADOPTED BY APOLLO TYRES

Various strategies adopted by Apollo tyres include:

New Product Development Strategy

New Product development have eight steps, Idea Generation, Idea Screening ,Concept

Development and Testing, Business Analysis , Beta Testing and Market Testing , Technical

Implementation, Commercialization & New Product Pricing. Apollo is the first Indian Tyre

Company to produce H, V and W-speed rated tubeless tyres and also to introduce radial tyres

for the farm category.

Strategic Brand Management

"Strategic brand management involves the design and implementation of marketing

programs and activities to build, measure, and manage brand equity." These concepts and

techniques are to improve the long-term profitability of your brand strategies.

The four steps involved are,

Identifying and establishing brand positioning and values.

Planning and implementing brand marketing programs.

Measuring and interpreting brand performance.

Growing and sustaining brand equity.

Apollo is the first company to launched new scheme of solving the claim within 2 days.

This strategy provided Apollo a great advantage over its competitors.

GLOBAL MANUFACTURING LOCATIONS

Bulawayo, Zimbabwe

Chennai, India

Durban, South Africa

Enschede, Netherlands

Harare, Zimbabwe

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Kalamassery, India

Kundli, India

Ladysmith, South Africa

Limda, India

Perambra, India

RAW MATERIAL PROCUREMENT

Raw materials are procured by indigenous procurement and imports. Indigenous

procurement of synthetic rubber from Gujarat, Carbon from Ambalamukal, Andhra Pradesh,

Beads from Tata Steel, etc. is done. Imports of raw materials are nylon from Taiwan, Bangkok,

China, synthetic rubber from Hongkong, Korea, Brazil, rubber and chemicals from Germany,

etc. Chemicals like retarders, accelerators, sulphur, zinc oxide. Payments of raw material are

made using letter of credit

APOLLO SALES

Apollo Tyres make their sales through their dealers. In Apollo 75% of the tyres are sold

out by way of depo sales, 20% through Orginal Equipment Manufacturers and 8 – 10% by way

of exports.

Original Equipment Manufacturers can be classified based on different types of

vehicle

1.Heavy and Light Commercial Vehicles

Tata Motors, Ashok Leyland, Eicher, Tatra Udyog, SML Isuzu, Force Motors,

Swaraj Mazda, Mahindra Navistar, Asia Motors, Kamaz-Vectra, MAN Force Trucks,

Volvo Eicher

2.Sports Utility Vehicles

Mahindra & Mahindra, Mitsubishi Motors, Tata Motors

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3.Farm Vehicles / Agriculture

Mahindra & Mahindra, TAFE, New Holland Agriculture, Punjab Tractors,

International Tractors, John Deere, Escorts

4.Passenger Vehicles

Maruti Suzuki, Tata Motors, Mahindra, General Motors, Hyundai Motors, Skoda

Auto, International Cars & Motors, Volkswagen, Fiat India, Ford India.

5.Speciality Vehicles

JCB

MARKETING STRATEGIES

Over two decades, Apollo worked on a portfolio of products, tuned to customer needs

and an array of innovative marketing initiatives to establish itself as a leader in its home market.

Some of these include segmenting customers by their load and mileage requirements, running

tyre loyalty programmes, establishing customer contact programmes which resulted in better

health and driving habits, introducing India’s first farm radials and India’s first range of high-

speed tubeless passenger car tyres. Strategic thinking is a key to the evolution of successful

marketing strategies of APOLLO tyre. This involves the following analyses:

(a) Understanding markets:

Research & Development department helps in identifying the tyre requirements of

consumers according to road conditions. Supported by a series of highly sophisticated

equipment, which help the research scientists develop products as per customers' specific

requirements. Better perspective of the market requires skilful analysis of the trend and how

they affect the market size and demand for the firm’s product. Exploring unchartered areas of

research in the field of Tyre Technology that will provide Apollo Tyres the edge in today's

ultra competitive global market scenario. They are always updating their strategies in order to

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hold their market share. Currently Apollo is facing severe threat from foreign firms like

Good Year, Bridgestone.

(b) Finding market niches:

Price, service, convenience and technology are some of the major considerations in

Indian market. Researches have revealed that any customer is oriented towards the low

priced edition of the tyre with a better quality and mileage. Not only Apollo is concerned

about the product but also the availability and the services associated with it, is a major

concern. In case of Apollo, studies are conducted on latest technology involvements in

various levels of operations in the company. They have the facilities and expertise for

Development of compounds for improved performance, raw material development, analytical

research reverse engineering, advanced design using CAD, FEA modeling of tyres,

simulation testing of the designed product, product validity & reliability studies.

(c) Product and service planning:

Analysis of the customer’s promotion of the brand, both of the firm and competitors,

besides an analysis of the situation in which the customer uses the product. Research and

development department which develops new products as per the demand of the market tries

to improvise this products or services they collect information from the research person about

their competitor’s products.

(d) Distribution:

Structural changes in inventory management, factors are affecting distribution by

road and sea are some of the key factors that are going to affect the distribution process in the

Indian market. Apollo's products are sold through a combination of outlets ranging from

exclusive dealerships to multi-brand and branded retail outlets.

(e) Managing for result:

With pressure on costs, prices, and margins, marketers will have to make effective

utilization of every rupee spent in marketing. The continuous up gradation of dealer

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knowledge is in Apollo's interest and therefore their training is undertaken by the company.

With dedicated field sales, technical and commercial force, they are best positioned to meet

the customer specific needs. There is a synergistic blend of knowledge; experience and hard

work, this multidisciplinary team of scientists are devoted to lead the organisation towards an

outstanding level of success.

(f) Complaint Redressal

One of the effective strategy followed by Apollo tyres is ‘Claim Samadhan’ in which

the complaints registered to the company is redressed within one hour.

MARKETING MIX

PRODUCT

Product Specifications

Apollo Tyres Ltd follow strict quality control measurement to enhance customer delight.

Apollo tyre follow BIS standards. It gives much emphasis to retain the quality of the products.

The company’s quality policy also concentrates on each state of the tyre manufacturing process

and on all the activities related to production.

Product variations

Product variations are made based on the customer’s specific requirements based on road

conditions. Various types of modifications done are

Excellent traction in both wet and dry conditions

Mileage delivery

Based on load application

Excellent traction for both on/off-road applications

Good traction on highway terrain

More tread rubber

Dual beads for heavy-load applications

Stronger casing for high loads and multiple retreads

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Good cornering and braking

Material provides longer life and wear-resistance

Extra power and resistance to cuts and cracks

Strong carcass for multiple retreads

Noise free

Less heat build up

Tubeless tyres

Product Innovation

Product innovations are made by constant Research and Development wing at Baroda on

the customer requirements, seasonal requirements and road conditions of a particular market

segments. Comparison on customer’s preference of Apollo tyre and their competitors are done.

By analysing the innovative features adopted by competitors, estimating market share and

demand and new ideas of R&D department gives rise to a new product. Mega trials and tests like

Carcass test, Pluncher test are done in laboratories, Endurance test and test trials are done before

the product is launched into the market. In R&D department, there are facilities and expertise

for:

Development of compounds for improved performance

Raw material development

Analytical research

Reverse engineering

Advanced design using CAD

FEA modeling of tyres

Simulation testing of the designed product

Product validity & reliability studies

PRICE

The growth of the tyre industry is dependent on economic growth, infrastructure

development and also growth in the automobile industry which is cyclical in nature. Most of the

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raw materials are petroleum based and their prices are linked to the movement in crude oil

prices. Natural rubber which is one of the major components of the total raw material cost is an

agricultural product and is subject to price and production. Price of tyres are fixed based on the

cost of these raw materials which is highly fluctuating. Initially when the firm started 1kg natural

rubber cost only Rs. 20 which presently cost Rs. 220 / kg. Apollo Tyres always follow a

competitive price. There will be a price fixed by Automotive Tyre Manufacturers Association

(ATMA) below which any tyre manufacturer could not price their product. Export price of tyres

is less when compared to domestic market.

PLACE

Apollo tyre reaches customers through dealers. Products are transmitted to the dealers by

way of road with national permit and sea. Apollo has enabled itself and its business partners to

forge ahead of the competition by launching the first 'TRUST' outlet in Salem, Tamil Nadu. The

first of its kind in India, the Apollo TRUST is a fully automated service outlet providing wheel

alignment, wheel balancing and radial repair services to the discerning truck/bus radial customer.

Another first from Apollo is the specialist farm tyre network "Apollo Pragati Kender" has helped

company to consolidate its position in the market.

PROMOTION

Promotion represents all of the communications that a marketer may use in the

marketplace. Brand building for tyres has to be a judicious mix of conventional advertising as

well as other techniques like customer contact programmes, direct mailing, the Internet,

specialist media and PR.

Broadly defined, optimizing the marketing mix is the primary responsibility of

marketing. By offering the product with the right combination of the four Ps marketers can

improve their results and marketing effectiveness. Making small changes in the marketing mix is

typically considered to be a tactical change. Making large changes in any of the four Ps can be

considered strategic.

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Word of mouth is any apparently informal communication about the product by ordinary

individuals, satisfied customers or people specifically engaged to create word of mouth

momentum. Mouth to mouth communication is also practised through their dealers which is a

major promotional tool on which they concentrate. So these dealers are carefully selected and

trained in such a way that they could give adequate information to the customers regarding the

different products available in the market and their features.

Another promotion strategy followed was :

On purchase of 4 Apollo Tubeless Tyres, the consumer got a Van Heusen gift

voucher worth Rs 1000. A countrywide advertising exposure was created for the

customers of Aspire, Acelere Sportz, Acelere & Hawkz Tyres.

'The Mall Drive' a unique outreach programme to change the perception of tyres

from a commodity to a high-end consumer durable.

At the Auto Car Performance Show which is the single biggest definitive event in

India's automotive calendar Apollo got the perfect opportunity to showcase its new

identity.

Apollo also hosted the 'Design Your Tyre' contest which continues to be very well

received over the years. Apollo participated in the 2009 Mumbai International Motor

Show which also saw participation from all the other leading Indian and multinational

automotive brands like Volkswagen, Honda, Toyota, Fiat, Mitsubishi, Fiat and Mahindra

and Mahindra.

Branding initiatives like 'Unstoppable Indians' with NDTV Profit and 'Highway On

My Plate' with NDTV Goodtimes have both provided an excellent platform for the

Apollo brand.

EXPORTS

Exports out of the key manufacturing locations reach over 70 destinations across the

world, with key comprising Europe, Africa, the Middle East and South-East Asia.

The international markets have been severely affected due to acute fall in demand, extreme

liquidity crunch and devaluation of some key currencies of important markets. All sectors were

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adversely affected on export front due to combination of economic conditions that developed

around the third quarter of the financial year.

Exports of Apollo Tyres were also not left unscathed through robust internal processes and

a strong distribution network developed over the last 2-3 years which helped to blunt the impact of

demand slowdown.

The year under review was creditable for exports for the fact that the overall volumes

exported in passenger car radials (PCR), was not only maintained, on the face of demand slump,

over the previous years volumes but also improved on it. Apollo Tyres continues to be the highest

exporter of PCR tyres from India.

The exports of truck and bus tyres by Indian manufacturers dropped by about 20%.

However, exports of Apollo truck and bus tyres were marginally affected. This decrease is largely

attributed to Apollo's decision not to cut prices in the wake of severe price undercutting by

competition.

Marketing activities continued to be focused at both wholesale and retail levels though

plans are afoot to bring out more retail led initiatives, riding on the launch of the new Corporate

Identity. The very popular Apollo Vista marketing programs were conducted in a number of

countries, and various technical workshops were held to reach out to the end users in various

markets.

CORPORATE SOCIAL RESPONSIBILITIES

Apollo Tyres Ltd’s definition of Corporate Social Responsibility or CSR, stems from its

vision statement of “continuously enhancing stakeholder value”. The key aim is to add value to

the lives of stakeholders, through not-for-profit initiatives. To ensure that all programmes and

initiatives remain sustainable and relevant, they are linked to the company’s business goals and

CSR is treated as a business process. The company believes that if undertaken in the right spirit

and process, social initiatives can be a long term risk mitigator and help manage key business

and operational challenges.

The bulk of Apollo’s community initiatives revolve around the awareness and prevention

of HIV-AIDS. Three key stakeholder groups – commercial vehicle customers or the trucking

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community, employees and business partners – are addressed directly through Apollo’s HIV-

AIDS programme.

Our Partners

Ambuja Cements Foundation

Avert Society, Mumbai

Gujarat State AIDS Control Society

International Finance Corporation

International Labour Organisation

Population Services International

Rajasthan State AIDS Control Society

Tamil Nadu State AIDS Control Society

Our NGO Partners

Astitva Sansthan, Udaipur

CMDA Truck Terminal Complex Welfare Association, Madhavaram and Poonamallee

Jan Kalyan Maha Samiti, Fatehpur

Krishnagiri Motor Vagana Pazhudhuparkkum Paniyalargal Nala Sangam (KMVPPNS),

Krishnagiri

Namakkal Taluk Lorry Owners’ Association, Namakkal

SIDART, Jaipur

Tuticorin Lorry Owners' Association, Tuticorin

Health

AIDS initiative is the biggest and most comprehensive programme at Apollo. Apollo

Tyres health care clinics have been established in and around cities like UP , Tamil Nadu,

Maharashtra , Rajasthan , New Delhi and other large transportation hubs in India. The

clinics focus on diagnosis and treatment of sexually transmitted disease.

Emergency Medical Services around their manufacturing locations in India

Established Highway rescue project in Gujarat

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Plan to launch in Kerala

Health camps and Medical assistance in villages surrounding the manufacturing

location , generate awareness about deadly diseases like AIDS, Malaria, TB etc

Provision of artificial limbs to war wounded soldiers.

Education

Adult Literacy classes for villages.

Skill development for women in villages with a view to making them self sustained

members of the community. Tailoring classes are arranged on an ongoing basis and an

Anganwadi (crèche) was also provided to take care of the children from economically

underprivileged families.

Primary education in keeping with Millennium Development Goal in the villages

involved awarding scholarships to support bright students from economically backward

sections of society.

Infrastructure

Maintenance of school building in the villages.

Provision of computers to the schools in the village.

Provision of water tank for the village as well as laying a pipe line to bring supply of

drinking water for the 500 students of the Government Girls High School, Kodakara,

Perambra.

Inclusive Growth

Opportunity of self employment to war wounded soldiers. 

Customer Promotion on safe drive

Conducting Safe Drive campaign on the national expressways, which included

checking the tyres for damages or wear patterns to ensure that they were safe for an

expressway journey.

Customers were also given Safe Drive booklets.

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20 such Safe Drive campaigns have already taken place across the country this year.

Twenty more are planned.

Environment

Wind Energy project initiated six months back along with Suzlon, has enabled tapping

into a 8 Megawatt Capacity of wind power, with an expected generation of approximately

1.70 million units of power every year.

Technology Upgradation along with waste heat recovery has resulted in approximately

39,000 cers being granted by UNFCCC.

Steam energy to replace use of RLNG under an agreement with GAIL.The  

project,based on Waste Heat Recovery System from GAIL's Gas Turbines exhaust,

isconceived as a Clean Development Mechanism (CDM) project under Kyoto Protocol.

This initiative would enable Apollo Tyres to generate 4 MW of Power and allow the two

companies to save around 935 Million Kilo Calories of energy in producing process

steam, thereby also avoiding formation of 55000 tonnes of CO per 2annum.

Activities are continuously redesigned and shaped to suit the dynamic requirement of

various programmes. Some activities will need to be managed through expert NGO's. For

the future, Apollo Tyres aims to further develop its alliances with the business

community, educational institutions, social organisations and community gatherings to

spread awareness and take action.

SWOT ANALYSIS

Strengths

• Strong brand recall in a price sensitive Indian market

• Continued market leadership in the dominant industry segment of truck and bus tyres

• Global presence with the acquisition of Apollo Tyres South Africa (Pty) Ltd. (Formerly

known as Dunlop Tyres International (Pty) Ltd.)

• Extensive distribution network in India and South Africa

• Responsive to changes in market conditions and product profiles

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• Global quality standards, international process and system certifications

• High usage of information technology systems to hasten the flow of information and

leverage

Opportunities across 140 locations in India

• Dynamic and progressive leadership, willing to implement change

• Economies of transportation cost, on account of closeness to natural rubber growing

belt

• Global sourcing of raw materials

• Best promotion by display

• Advertisement

• Heavy range of product.

Weakness

• No presence in two and three-wheeler segments

• Capital intensive business

Opportunities

• Leadership position in the commercial vehicle segment will enable the Company to

leverage

new and related business opportunities

• New product segments like Truck/Bus Radial (TBR), Off The Road tyres (OTR),

retreading

and allied automotive services

• Growth in overseas markets like Europe

Threats

• Imports from neighboring countries at competitive prices

• Raw material price volatility.

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FUTURE PLANS

Apollo has initiated steps to implement a Green Field Project in Chennai.

CONCLUSION

Thus Apollo has taken efficient marketing strategies to reach the global customer.

Apollo tyres through their Research and Development is taking constant efforts to study on the

customer requirements, road conditions and market situations to develop innovative products and

also gives much emphasis to retain the quality of the products.

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Strategic thinking is key to the evolution of successful marketing strategies of APOLLO

tyre. This involves the following analyses:

(a)

Understanding markets: Strategic perspective of the market requires skilful analysis

of the trend and how they affect the market size and demand for the firm’s product.

(b)Finding market niches: Price, service, convenience and technology are some of the

niches in Indian market.

(c)Product and service planning: Analysis of the customer’s promotion of the brand, both

of the firm and competitors, besides an analysis of the situation in which the customer uses

the product.

(i)

Distribution: Structural changes in inventory management, mobile

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