Various types of Tyre segment

Truck and Bus Tyres The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2003. Every truck/bus manufactured generates a demand for seven tyres (six regular and one spare) as against three in the case of two-wheelers and five for passenger cars. In addition, the price of a truck tyre is significantly higher than that of a passenger car tyre (roughly 10 times) or a motorcycle tyre. Thus the demand multiple emanating from the commercial vehicle segment is highest in value terms. Given the regular use and heavy wear and tear of truck and bus tyres, the demand from the replacement market in this segment worked out to 68% of the total demand for truck and bus tyres in FY2003; the OEM demand accounted for around 9% the same year. With the Indian manufacturers of cross-ply tyres focusing on the export market, this segment accounts for around 22% of the demand for truck and bus tyres.

Passenger Car Tyres The passenger car tyre segment accounted for 17% of all tyres produced in India in FY2003. With passenger car production witnessing a growth of 12% in FY2003 over the previous year, OEM demand accounted for about 33% of the total sales that year. The

replacement market accounted for around 63% of the total sales of passenger car tyres in FY2003. Exports accounted for 4% of the total passenger car tyre demand in FY2003. With the stock of cars increasing, replacement demand is likely to continue. Motorcycle Tyres Motorcycles accounted for 76% of two-wheelers sold in the domestic market in FY2003. Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% of total tyre demand in FY2003). The replacement market accounted for around 49.8% of the total motorcycle tyres sold in FY 2003, while OEM demand accounted for around 50%. Scooter Tyres Scooters were the dominant segment in the Indian two-wheeler industry till FY1998, accounting for around 42% of domestic twowheeler sales. However, the introduction of new motorcycle models has seen the share of scooters declining to 19% of domestic twowheeler sales in FY2003. The OEM segment accounted for around 34% of the total sales in the scooter tyre segment in FY2003, with the rest being accounted for by the replacement market Tyre Demand by Markets

Marketing Strategy Strategic thinking is key to the evolution of successful marketing strategies of JK tyre. This involves the following analyses: i.Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firms product. ii.Finding market niches: Price, service, convenience and technology are some of the niches in Indian market. iii.Product and service planning: Analysis of the customers promotion of the brand, both of the firm and competitors, besides an analysis of the situation in which the customer uses the product. iv.Distribution: Structural changes in inventory management, mobile distribution are some of the key factors that are going to affect the distribution process in the Indian market. v.Managing for result: With pressure on costs, prices, and margins, marketers will have to make effective utilization of every rupee spent in marketing. Market opportunity of JK: Identification of market opportunity is critical before the management of affirm takes a decision to launch or diversify in any product area. This involves analysis of the following: Size of the market Marketing strategies and the extent and quality of services rendered by other firm in the industry. Market programmed required to satisfy market wants Identification of key success factors in an industry and linking them to a firms strengths and weakness

a. Size of the market b. How well the market is served c. Prospective inches d. Marketing mix required to succeed e. Core competencies required : Sizes of the market are.... I.Demand analysis: is the core aspect of market opportunity. II.Segmentation analysis: is the process of dividing the market into homogeneous sub units. III. Industry analysis:
Competitor analysis: analysis of competition how well the market is served

Marketing mix: A Marketing mix is the division of groups to make a particular product, by pricing, product, branding, place, and quality. Although some marketers[who?] have added other P's, such as personnel and packaging, the fundamentals of marketing typically identifies the four P's of the marketing mix as referring to:
1. Product 2. Price 3. Promotion 4.place

Product

A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the

hotel industry. Typical examples of a mass produced tangible object are thet yr e. A less obvious but ubiquitous mass produced service is a computer operating system.

Product range:

RIB
SEMI LUG

BIAS SIZE 9.00-2014PR 9.00-2016PR 9.00-2014PR 9.00-2016PR 10.00-2016PR 11.00-2016PR 12.00-2016PR

TYPE JET RIB JET RIB TRACK TUF TRACK TUF JET KING JET KING JET KING

lug

Price
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product

Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. 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. Sales staff often plays an important role in word of mouth and Public Relations.
STRENGTHS

Strong brand image Being quality oriented rather than quantity oriented Large product width & line (product mix) Very large distribution channel Reasonable price

 Effective employee in JK Economies of scale due to optimum capacity utilization Collaboration with Vikrant, know for their technological superiority bringing together performance, economy, durability and comfort. Strong financial positions WEAKNESSES Less Brand Awareness Less concern about small car segment OPPORTUNITIES A burgeoning work force and growing middle class population High growth potential for its exports as demand for JK tyre in Europe increasing Indian customers are mainly value buyers demanding a better overall package. JK is poised in a better position than other players in the market to capitalise on this opportunity Entry of new players with newer and better technologies in the small car tyre segment So many close competitors like Appolo, Birla, Ceat, Modi, Kaizen etc.

Table showing Total market share

name apollo birla ceat

620

% in total 27.35% 8.18% 17.73%

j.k. mrf goodyear others total

1033 421 130 80 3496

28.69% 12.04% 3.72% 2.29% 100%

How do customers buy? Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below: