INTRODUCTION TO INDUSTRY

RUBBER INDUSTRY

Rubber is an organic substance from natural resources or synthesized artificially which has
the prescribed properties of extensibility, stretchability and toughness. The scientific name of
Rubber is “Heaven Brasiliense’s”. It acquired this name because of its ability to erase.
Nearly 85% of the plantations are in the hand of small farmers. The industry pays highest
wages to its workers more than those who can earn from other plantations. A rubber tree can
help tap regularly throughout the tree remains productive for 30 to 40 years. Indians per
hector yield of rubber is the highest in the world (about 1500 kg)

The natural rubber from just 25%of the world requirements the rest is made up with synthetic
rubber items from petroleum. But natural rubber is still essential for certain products-nearly
50%to60% of auto and track tyres is natural rubber where synthetic rubber is used for
production of tubes.

THE INDIAN TYRE INDUSTRY

The foreign companies dominated the Indian tyre industry till 1960; however, in the latter
part of 60’s and early 70’s the Indian industrial, Entrepreneurs made a stylish entry into the
market alongside collaboration with the automobile sector foundation with in the country.
The tyre industry saw the entry of players and with the winds and liberation blowing a midst
hue and cry, swept the entire land in 1992 and brought about the role of joint ventures within
the industry.
Ever since the first Indian tyre company, Dunlop Rubber Company (Indian) was incorporated
in 1926, the type industry has grown rapidly and today it is an Rs.9000 crore industry. The
Indian tyre industry produce the complete range of tyres required by the Indian automotive
industry, except for aero tyres and some specialized tyres. Domestic manufactures produce
for trucks, buses, passenger cars, jeeps, light trucks, tractors (front, rear, and trailer), animal
drawn vehicles, scooters, motorcycle, mopeds, and bicycles and off the road vehicle and
special Défense vehicle.
India has 2.61 lakh villages, connected by 6.23 lakh kms to metal led roads and 9.81 lakhs
kms of unmetalled roads. These villages are linked to small town and cities. There exists a
vast potential for the tyre industry in India. The fortune of the tyre industry depends on the
agricultural and industrial performance of the economy, the transportation needs and the
production of vehicles. Hence, this is a very sensitive industry, which has to adapt itself to a
highly volatile environment.

While the tyre industry is mainly dominated by the organized sector, the unorganized sector
holds away in bicycle tyres. The major players in the organized tyre segment consist of MRF
Tyres, Apollo Tyres, Ceat, and Jk Industries, which account for 63 percent of the organized
tyre market. The other key players include Modi Rubber, Kesoram industries, and Goodyear
India, with 11 percent, 7 percent and 6 percent respectively. Dunlop, Falcon, lyre Corporation
of India Limited (TCIL), TVS Srichakra, Metro tyres and Bal Krishna Tyres are some of the
other players in the [Link] Indian tyre industry evolves itself around some silent
features like:
 Adaptability
 Innovation
 Export
 Technology progression
 Wide product range for divers’ usage
The Original Indian tyre market can be categorized into three. They are;
 Equipment market
 Replacement market
 Export market
The main raw materials for tyre are;
 Rubber
 Carbon black
 Nylon cord
 Chemicals.
 Synthetic rubber
 Oil
GLOBAL SENARIO
Natural Rubber is a commercial plantation crop from the tree species, Hevea brasiliens is
grown in tropical humid climatic conditions. Thailand, Indonesia, Malaysia, Vietnam, China
and India are the major NR producers globally. The current world production and
consumption of NR is around 12.40 million tonnes and 12.60 million tonnes respectively.
The major NR consumers are China, India, USA, Japan, Thailand, Indonesia and Malaysia.
Rubber is largely perceived as a strategic industrial raw material and accorded special status
globally for defence, national security and industrial development. Major consuming
countries keep strategic reserves of NR.
Rubber is an internationally traded commodity and price of rubber is influenced interalia by
trends in economic growth, production in major producing countries and demand in major
consuming countries. Domestic NR prices generally follow the trends in the international
market and is therefore, subjected to fluctuations in price.

INDIAN SENARIO
Indian rubber industry is characterized by the co-existence of a well-established rubber
production sector and a fast-growing rubber products manufacturing and consuming sector.
The Rubber Industry value chain begins from NR plantations and ends with a huge range of
dry rubber and latex based products. Historically, NR was a regulated commodity with strong
tariff protection and domestic market regulations. The key factors which have contributed to
the growth of Indian rubber industry are positive intervention of institutional agencies aiming
at self-sufficiency and import substitution. Most of the rubber products including tyres
require blends of NR and SR. Consumption of SR is mainly determined by end product
composition, technological change and relative prices. Consumption of SR in India in rubber
products manufacturing sector increased from 411,830 tonne in 2010-11 to 633,975 tonne in
2017-18. Currently, there are four companies producing SR and production increased from
110,340 tonne in 2010-11 to 331,221 tonne in 2017-18. Styrene Butadiene Rubber and Poly
Butadiene Rubber accounted for 63% and 34% of SR production in the country. Import of SR
amounted to 338,189 tonnes in 2017-18. Consumption of SR in India is projected to reach 1.2
million tonnes by 2025.
Major Market Player s and Their Market Share
The prospectus of tyre exports from India appears healthy; following efforts by Indian
companies to increasing entering into out sourcing agreement with tyre producers in South-
east Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are likely to tap the
export market in an effort to boost sales.
The increasing exports of bus and truck tyre from India to developing countries is because of
the fact that developing countries are unable to source them from developed countries as
these are no more produced there. Tyre imports are unlikely to pose a threat to the domestic
industry, given that domestic prices are lower than international tyre prices.
In the domestic market, tyre manufacturers are expected to increasingly focus on expanding
their dealership networks and explore possibilities of tie-ups among themselves to penetrate
the growing customer base. They are also likely to pursue innovative measure to improve
customer awareness.
The consolidation of the Indian tyre industry is likely to continue in the coming years through
mergers among existing players. The industry is likely to expand through a combination of
organic and inorganic growth. While organic growth would come from raising efficiency
levels, inorganic growth would be achieved through alliances and mergers & acquisitions.
 INTRODUCTION TO MRF COMPANY

Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company
located in Chennai, Tamil Nadu, and India. MRF is mainly involved in making vehicle tyres.
It is India's largest tyre manufacturing company.

The company was established in the year 1946. The company name is an acronym for Madras
Rubber Factory. MRF Ltd was started by a young pioneer called K.M. MAMMEN
MAPILLAI as small toy balloon manufacturing unit in a small shed at Thiruvottiyur in
Chennai. Since then, over these long golden 60 years, it has emerged as the largest tyre
manufacturer in India. It is also the world’s 13 th largest tyre manufacturing company. It is one
of the largest rubber companies both worldwide and in Indian private sector. MRF holds
more than 20% of the market share. It is the only tyre company to straddle the continent with
giant manufacturing facilities at Chennai, Arakonam, Kottayam, Goa, Medak, and
Pondicherry.
The company carters to all vehicle segment from commercial vehicle and passenger cars to 2
-3 wheelers and tractors and has a strong presence in both radial and cross ply segments. It is
also involved in a range of other activities via subsidiaries. Funskool India, a joint venture
between Hasbro and MRF LTD. is a major toy manufacturing company in the country.
MRF Pretreads offers world class procured tyre retreading service, and MRF Muscleflex is
involved in making conveyor belts. It is presently under the leadership of Vinoo Mammen,
son of the Late K.M. Mammen Mappillai.
It has a distribution network of more than 2500 outlets in the country, overseas offices in
United Arab Emirates, Bangladesh and Vietnam and export tyres in over 75 countries
globally. MRF LTD. enjoys of manufacturing the largest range of tyres in India and it has the
highest brand preference for superior quality, appearance and wearability. It manufactures the
largest range of tyres in the country and is the market leader with the largest market share in
almost every segment of the tyre industry.
MRF LTD. is the first Indian company to export tyres to the U.S., the very birth place of the
tyre technology. It is also the first company in India to manufacture and market Nylon tyres
and passenger tyres commercially. In 2007, the company’s turnover crossed INR 50 billion
mark.
MRF LTD. is the pioneer in motor racing tyres in India. MRF tyres are made to run at speeds
exceeding 150 kmph, at which they are exposed to extreme conditions of speed and traction.
The molecular stability of the rubber compounds is tested against severe gravitational stress.
MRF’s tyre experts and rubber technologists are present at every stage to observe, analyze
and gather information at the pits and the dirt track, which they pass on to the R & D
department. This is then reviewed and used to safer and better-quality tyres, not only for the
formula cars and racing bikes, but also for cars that rough it out on the tough Indian roads
every day.
OBJECTIVES OF THE COMPANY
The main objective of the company is ‘to attain global standard through continuous
improvement in the quality products and service in order to maintain market leadership’. The
main strategy of the company in today’s competitive world is ‘cut cost and win the battle’. As
the number of accidents in similar factories is comparatively more, the emphasis of the
company is ‘accident-free safe production’.
MRF Ltd achieves the objectives by taking the following actions;
 Product / process improvement by performance monitoring and prompt service
to the customer.
 Upgradation of all the machinery to meet the increasing needs of customer.
Continuous training is given to all employees in order to acquire necessary skills and
knowledge and improve the quality of work life.
MRF MISSION
To continue developing an aggressive, independent national advocate for the advancement of
motorcycling and its associated lifestyle which is financially stable and exceeds the needs of
motorcycling enthusiasts.
MRF VISION
MRF will be a significant global player delighting customers worldwide through
 Leadership in technology
 Excellence in manufacturing
 World class systems
Driven by a team of motivated by high performers to achieve profitable growth. Major
brands.
Super lug - country’ largest selling truck tyre.
Shakthi - country’ largest selling tractor tyre.
Zigma - country’ largest selling radial car tyre.
Nylogrip - country’ largest selling two-wheeler tyre.
Legend - country’ largest selling conventional car tyre.
THE PRODUCTION UNIT OF MRF LOCATED IN
Tiruvottiyur, Tamil Nādu. For automobile tyres.
Arkonam, Tamil Nādu. For bicycle, scooter, auto rickshaw tyres.
Goa for automobile tyres and procured tread rubber.
Kottayam, Kerala. For automobile tyres, tubes, procured tread rubber.
Medak, Andrapradesh. For automobiles.
Pondicherry for radial tyres.
Gummidippondi, Tamil Nadu (for radial tyres)
Perambalur, Tamil Nadu (for future requirements)
EVOLUTION OF MRF
1946
A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing
unit in a shed at Tiruvottiyur, Madras (now Chennai).
1949
Although the factory was just a small shed without any machines, a variety of products,
ranging from balloons and latex-cast squeaking toys to industrial gloves and contraceptives,
were produced.
During this time, MRF established its first office at 334, Thambu Chetty Street, Madras (now
Chennai), Tamil Nadu, India.
1952
MRF ventured into the manufacture of tread rubber. And with that, the first machine, a rubber
mill, was installed at the factory. This step into tread-rubber manufacture was later to catapult
MRF into a league that few had imagined possible.
1956
The quality of the product manufactured was of such a high standard that by the close of
1956, MRF had become the market leader with a 50% share of the tread-rubber market in
India. So effective was MRF's hold on the market, that the large multinationals had no other
option but to gradually withdraw from the tread rubber business in India.
1961
With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF
established a technical collaboration with the Mansfield Tire & Rubber Company of USA.
Around the same time, it also became a public company.
It set up a pilot plant for tyre manufacture at Tiruvottiyur, Madras (now Chennai). The Chief
Minister of Madras Mr. K. Kamaraj released the first tyre from the tyre plant.
1963
On June 12, 1963, India's first Prime Minister, Late Pandit Jawaharlal Nehru laid the
foundation stone for the Rubber Research Centre at Tiruvottiyur to commemorate the
inauguration of the Tiruvottiyur factory.
1964
With the commissioning of the main plant in 1964, MRF also made progress in the export of
tyres. An overseas office at Beirut (Lebanon) was established to develop the export market,
and it was amongst India's very first efforts on tyre exports. This year also marked the birth of
the now famous MRF Muscleman.
1967
MRF became the first Indian company to export tyres to USA - the very birthplace of tyre
technology.
1970
MRF inaugurates its Kottayam unit
1971
MRF opens its factory in Goa
1972
MRF's Arakkonam plant is inaugurated
1973
MRF scored a major breakthrough by being among the very first in India to manufacture and
market Nylon passenger tyres commercially.
1978
MRF developed the MRF Superlug-78, a sturdy tyre for heavy-duty trucks. The tyre was a
significant improvement over its existing products, and went on to become the country's
largest selling truck tyre in later years.
1979
MRF's turnover crossed INR one billion.
1980
MRF entered into a technical collaboration with the B.F. Goodrich Tyre Company of USA,
which was involved with the development of tyres for the NASA space-shuttle. With this
began a significant exercise in quality improvement and new product development.
1984
Sales crossed INR two billion. MRF tyres were the first tyres selected for fitment onto the
Maruti Suzuki 800 - India's first small, modern car.
1985
MRF Nylogrip tyres for two-wheeler vehicles were launched.
1986
MRF was selected by the National Institution of Quality Assurance for their most prestigious
award. Pitted against 20 tyre companies worldwide, MRF also won 6 Quality Improvement
Awards instituted by the B.F. Goodrich Tyre Company from USA.
1987
MRF crossed the INR three billion mark and also became the No. 1 tyre company in India.
MRF Legend, the premium nylon car tyre was introduced.
1988
The MRF Pace Foundation was set up, with international pace bowler, Dennis Lillee as its
Director. Not long thereafter, pace bowlers trained at the Foundation were selected for the
Indian Cricket Team.
1989
1989, MRF was the clear market leader in every tyre segment. Once again, in recognition of
excellence, MRF was awarded the Visvesvaraya Award for the Best Business House in South
India.
MRF collaborated with Hasbro International USA, the world's largest toy makers, and
launched Funskool India. Company also entered into collaborations with Vapocure, Australia
to manufacture polyurethane paint formulations and with Pirelli for MUSCLEFLEX
Conveyor & Elevator Belting. MRF opens its MDK unit
MRF launched the MRF ZIGMA CC Radial. Synchronizing with the MRF World Series
Cricket Tournament for the Jawaharlal Nehru Trophy sponsored by the company. MRF also
opened the MRF Tyredrome, India's first tyre company-owned wheel care complex at Madras
(now Chennai).
1990
MRF brought the 6th World Cup Boxing Championship to Mumbai - the first of its kind -
with 39 countries participating.
1993
K. M. Mammen Mappillai was awarded the Padmashri Award of National Recognition for his
contribution to industry - the only industrialist from South India to be accorded this honour
until that time.
MRF became the first tyre company in India to cross the INR 10 billion mark. In 1993 and
1995, the company was voted by the Far Eastern Economic Review, as one of the ten leading
Corporate Groups in India and a Leader in Asia. During the same time MRF was selected as
one of India's most admired Marketing Companies by the readers of the A & M magazine.
1995
The company's turnover crossed INR 15 billion. MRF was chosen for fitment on the Daewoo
Cielo.
1996
In the Golden Jubilee year, Mr & Mrs. Mammen Mappillai received gold medal for being the
first 2 employees of the company. A special factory dedicated entirely to the manufacture of
radials was started at Pondicherry. MRF Tyres were also chosen for fitment on the Ford
Escort, Opel Astra and Fiat Uno. Further proof of its superior quality.
1997
MRF launches its first ever F3 car
1998
MRF launches its Super Lug tyre for trucks
2000
MRF Launched ZVTS tyres for passenger cars. MRF launched the Smile campaign on Indian
roads.
2001
The MRF rally team wins the APRC rally
2002
MRF wins the JD Power award. The MRF Nylogrip Zapper for two-wheelers is launched
2003
MRF wins the JD Power award. MRF registers its second APRC victory.
2004
MRF's turnover crossed INR 30 billion mark
2005
MRF wins its third APRC rally.
2006
MRF's turnover crosses the 5000-crore mark
2007
MRF launches ZSLK tyres. MRF launches the Super Lug FS which many users claim to have
provided them fuel savings. MRF launches the Super Lug 505 - A premium mileage, rear
fitment truck tyre for national highway operations on rated roads. MRF wins the JD Power
award. Australian PM visits the MRF Pace Foundation.
2008
MRF wins the JD Power award again for the 6th time.
2012
MRF commissioned its 9th plant in Trichy (TN) solely for the manufacture of Radial Tyres.
2013
Won the JD power award for the 10th time.
2015
MRF breaks into Forbes India's Super 50 list of the best companies in India.
2017
MRF jumps 5 rankings to garner a spot in the coveted list of Super 30 Companies in India.
2018
The JD Power Award comes home for the 13th time.
POLICIES OF MRF
QUALITY POLICY
The main quality objective of the company is to ‘maintain market leadership through
continuous quality performance”
SAFETY POLICY
Safety and health of the employees shall be the first priority of the company. It is the
responsibility of each and every individual in the organisation, regardless of the position he
occupies, to ensure that everyone in the factory returns home without any injury. The
company offers ‘ACCIDENT-FREE SAFE PRODUCTION’ not only in letter but also in
spirit, for the benefit of one and all through this policy.
ENVIRONMENT POLICY
The environment Policy of MRF LTD. is ‘to manufacture the company’s products in an
environmentally friendly and safe manner’.
This is to maintain our products in an environmentally friendly and safe manner. To achieve
this goal, all the MRF plants, together with corporate office shall
 Minimize the impact of our manufacturing activities on the environment
especially the air, water, and soil.
 Comply with all applicable regulatory requirements
 Develop environmental performance evaluation procedures for continuous
monitoring
 Optimizes the consumption of resources (water, energy and raw materials) by
minimizing wastage, recovering and recycling where ever possible.
 Up gradation of the machinery and pollution control equipment when required
 Train all our employees to perform their activities in an environmentally
responsible land safe manner
At the plant level, the respective Senior General Managers/ General Managers are assigned
the responsibility of carrying out the environmental system by collaborating with corporate
functions.
TRAINING POLICY
The training policy of MRF LTD. is ‘to provide and develop knowledge, skills and behavior
of the company’s employees to continuously improve their performance’.
MRF plants along the corporate office join hands to accomplish the following.
 Competency evaluations conducted each year identify and document the training
needs of the employees.
 Design and publish the training calendar and schedule.
 Monitor and evaluate training process and out come to asses and to decide the next
training cycle requirement.
 Collaboration of the activities along with the activities of human resource department
plants.
MANAGEMENT
 The success or failure of a company is determined by the performance of its
management. It has to play a major role in functions such as decision making.
Management of MRF LTD. is led by Mr. K.M. Mammen, son of Mr. Mammen Mappillai
who started this company almost 60 years ago.
BOARD OF DIRECTORS
NAME DESIGNATION
Mr K M Mammen Chairman & Managing Director
Dr. Salim Joseph Thomas Director
Mr. Vijay R Kirloskar Director
Mr. Ranjit I Jesudasen Director
Mr. Ashok Jacob Director
Mr. V Sridhar Director
Mrs. Ambika Mammen Director
Mr. Jacob Kurian Director
[Link] Abraham Director
Dr. Cibi Mammen Director
Mr. Rahul Mammen Mappillai Director
Mr. Arun Mammen Vice Chairman & Managing Director
Mr. Varun Mammen Whole Time Director
Mr. Samir Thariyan Mappillai Whole Time Director

INDIAN COMPETITORS OF MRF LTD

1. CEAT
2. APOLLO
3. J K TYRES
4. MODI
5. GOOD YEAR
6. DUNLOP
7. BRIDGESTONE

ORGANISATIONAL GOAL
‘To maintain global standards through continuous improvement in the quality of products and
services in order to maintain market leadership’
MRF Marketing Strategy and Interesting Facts Behind Its Success. Price:
MRF faces heavy competition in the tyres segment and thus, it follows a competitive pricing
strategy in its marketing mix. Business of MRF is done on the promise of high quality and its
perfection in the field of tyres. Prices are affordable to the end customer with high margin.
MRF sports gear has an appeal in the premium segment and thus, has higher prices to its
sports gear as it is endorsing by the sportsmen.
Place:
MRF has seven plants located in south India. It has around 2500 stores and exports to over 65
countries. MRF distributes to factories, agents, regional centres, dealers, etc. The tyres are
mostly sold to dealers and agents. Direct sales to customers are less relevant as tyres are a
part of an automobile. So, mostly the automobile company, store, service centre deals in
obtaining these tyres. MRF sports gear is available in many sports store. MRF does not have
any MRF specific stores, given the brand equity and heavy advertisements; it is easy to sell
through dealership.
Promotion:
MRF has always focused on an extreme and aggressive promotional strategy. MRF tyres
have targeted sports to promote its brand and it has been very successful in doing so. It
sponsored cricket bats for many legendary players like Sachin Tendulkar, Steve Waugh and
Brian Lara. And today, MRF campaigns are done by leading cricketers like Virat Kohli, AB
de Villers and Shikar Dhawan.
Other than celebrity involvement in its campaigns, the anchored balloons in IPL 2010 and
also in World Cup were sponsored by MRF. A training centre for pacers is launched by the
MRF Pace Foundation. Many bowlers that were trained in MRF Pace Foundation went on to
represent the country at a national level.
Some of them are Irfan Pathan, Zaheer Khan, Munaf Patel, etc. The MRF Motor Challenge is
a racing competition specially created for branding and covers all media channels like TV,
print, online, billboards etc. for its advertising and marketing.
MRF Campaigns
MRF has a unique style to campaign its product. Few of them are:
‘Comfort Made More Comfortable’
The campaign promotes MRF ZLX, the latest range of tyres specifically designed for sedans
and hatchbacks. From lateral grooves for improved ride comfort, edge-to-edge comfy
stabilizer liner and wide tread polymer blend for an improved life, this tyre is specially
designed to offer superior grip and optimized cushioned ride.
In this campaign, the brand intends to communicate their proposition of ‘comfort made more
comfortable’. The video involves a complicated game of Jenga in action in a sedan which is
riding on top of MRF ZLX tyres moving over challenging roads through bumps and potholes.
This eventually hits home the message that a journey becomes more enjoyable when the ride
is more comfortable.
‘I Dare to Tread Anywhere.’
The video shows Virat Kohli driving the car will full courage as he has confidence in the
MRF tyres. The campaign aims to raise the adventurous spirit among people who like to
explore their limits and go beyond the challenges. The ad campaign featuring its brand
ambassador and Indian cricket captain, Virat Kohli, was to promote the attributes of SUV
brand, MRF Wanderer in India. MRF Wanderer tyres are designed for those who never settle
for the mundane and venture off the beaten path.
The communication this time took an aggressive twist and a fresh perspective on the core
brand positioning – Tread Anywhere. Lowe Lintas, Chennai has portrayed the true Wanderer
spirit by using Virat’s Samurai tattoo and his passion for adventure in an exceptional creative
manner. The campaign resonates well with those who chase adventure.
PRODUCT PROFILE
Automotive Tyres are the Main Products
 Truck tyre – Tube tyre and Tubeless tyre
 Light Truck tyre
 Special tyre for defense
 Tyre for industrial application
 Agricultural tractor and tiller tyre
 Off the road tyres – Solid tyres and earth mover tyres
 Passenger tyre – Bias ply and radial
 Two/ Three-wheeler tyres
 Specialized tyre for motor rallies
Non – tyre products
 Automotive tubes
 Flaps
 Conventional tread rubber
 Pre- cured tread rubber.
  Vulcanizing solution
 Tyre repair materials
 Conveyor belts
 Toys
 MRF metal coat
 MRF wood coat
 MRF glass coat
 MRF velour
 MRF auto coat
BEYOND TYRES
Paint & Specialty Coatings
MRF LTD. manufactures specialist coatings for a wide range of applications. Major
MRF paints and specialist coatings are:
 MRF Metal Coat
 MRF Wood Coat
 MRF Glass Coat
 MRF Vapocure
 MRF Brass Coat
 MRF auto Coat
FUNSKOOL TOYS
Funskool India Ltd. is a joint venture between MRF LTD. and Hasbro Inc., USA, the
world’s largest toy company. This plant is at Goa. The plant produces various models of
toys.
MRF MUSCLE FLEX CONVEYOR BELTING
MRF LTD.’s collaboration with Pirelli came at a time when the Indian conveyor belting
industry was seeking technological momentum. MRF Muscle Flex offers several
advantages to buyers of belting in India. The conveyor belt is made from superior
rubber compounds with better ageing characteristics.
MRF Kottayam Unit
MRF limited, Kottayam are one of the most modern plants that was setup in 1969 at
Vadavathoor about 7km from Kottayam town in the state of Kerala, a hamlet lying on the
 outskirts of Kottayam district. About 10 crores of land was purchased in Vadavathoor
village during 1968 and the foundation stone for the factory building was made by late
Sri. [Link]. Availability of intelligent and motivated labor, natural rubber in large
quantity (Kottayam is the land of 3 L’s-Latex, Letters & Lakes), cheap power etc.
Tariffs, tax concession and transportation facilities were the main reason behind the
choice of Kottayam as the 2nd manufacturing facility of MRF.
A factory building with in the area of 34200 sq. ft was constructed during the period of
1968- 69 and Ban-Bury (internal mixer) of 3A size with a capacity to mix of 10 meter
per day was erected and commissioned on 21st July 1969, with strength of 7 workmen.
Presently it is the most advanced technology mixing unit and a fully fledged
manufacturing unit providing truck and tractor tyres.
In the view of high productivity and very good performance in general, the mixing capacity
was enhanced by installing a second Ban-Bury of 11A size with a capacity to mix 48
meter per day during march 1970, with the permission of Goa government. A license to
manufacture 400000 automotive tubes per annum was transferred and started production
of tubes with 7 quarrying presses. To enhance the mixing capacity, Ban-Bury of 11 D
size were installed in 1978 to meet the increasing demand for mixing. At present 6000
tones of various compounds are dispatched to different units.
Another new product introduced in MRF Kottayam unit during 1993 was flap production.
The management also decided to start tyre production Kottayam unit taking amount of
various incentives on tax and power announced through a new industrial policy by the
Kerala Government. The tyre plant with an initial plan to produce 200 numbers of tractor
rears and 600 numbers of tractor front tyres per day was inaugurated by Chairman Sir
[Link] Mappilai on 30th May 1994. Commissioning of tyre plant was the
beginning of a new era in the history of Kottayam unit. Initially tractor front tyres were
produced and then it diversified into passenger tyres, tractor rear and truck tyres of
various sizes. Cement house was also built to prepare various cements and paints
required at tyre plant and also for the production of vulcanizing solution.
A new plant, mainly for PCTR (Pre-Cured Tread Rubber) production was commissioned in
the year 2000. This new plant now houses a 6” cold feed extruder for extruding re-
threading materials and PCTR slugs, PCTR curing presses, 48” calendar for production
 of tyre repair materials, 68” fabric calendar, German tuber for flap slug extraction, flap
curing presses, tyre finishing and repair, tyre clinic, textile lab, finished goods storage
and shipping.
With the growth in the number of tyre presses and subsequent increase in the requirement of
bladders (which were being supplied by other units of MRF) Kottayam unit started
producing bladders for its use and also for supplying to other units. The bladder press
is located in the tube plant.
As a new product, solid tyre production was introduced at Kottayam unit in 2004. This
solid tyre curing presses are located in tube plant.
 INTRODUCTION TO THE STUDY

Consumer preference is defined as the subjective tastes of individual consumers, measured by

their satisfaction with those items after they have purchased them. This satisfaction is often
referred to as utility.
A set of assumptions that focuses on consumer choices that result in different alternatives such as
happiness, satisfaction, or utility. Consumer makes decisions by allocating their scarce income
across all possible goods to obtain the greatest satisfaction. Formally, we say that consumers
maximize their utility subject to budget constraint. Utility is defined as the satisfaction that a
consumer derives from the consumption of a good. As noted above, utility’s determinants are
decided by a host of non economic factors. Consumer value is measured in terms of the relative
utilities between goods.
The entire process of consumer preference results in an optimal choice. Consumer preference
allows a consumer to rank different bundles of goods according to the satisfaction levels or
utility. Utility is nothing but the total satisfaction of consuming a good or service.
some examples of consumer preference include:

 Brand loyalty
 Price sensitivity
 Quality of product
 Purchasing power

The most common example of consumer preference is deciding whether or not to buy a product
or service. Some of the examples include:

 A customer chooses to spend money on a cheaper product than their competitors but with
a lower quality. In this example, the consumer prefers product accessibility and lower
cost rather than buying an expensive alternative.
  A customer chooses to buy a new car with an extended warranty because they know that
it will help them out if anything goes wrong with their old car. In this case, the consumer
prefers to purchase products with a higher guarantee of safety and security.
 A customer buys an expensive detergent brand because they want to get the best quality
and performance. In this example, the consumer is looking to extend the life of their
clothes by purchasing the best-performing detergent on the market.
 A customer chooses to get a massage from a self-employed masseur over getting one at a
corporate massage chain because the consumer prefers to support local businesses. In this
example, the consumer values local economy development.

STATEMENT OF THE PROBLEM:

Profit earning has become one of the important objectives of each and every company. It is very
easy to attract new customers but retaining old customer is too difficult only the satisfied
customer will remain loyal to the firm brands. A person enters a showroom when he wants to
purchase tyres, but before purchasing tyres he consults so many persons about tyre. Like about
price, quality, service etc, and then he make decision to purchase. If he finds any problem with
tyres, he may change his positive attitude into negative attitude towards tyres given by the
showroom. Considering, all above points, I have decided “To study the Consumer preference
towards MRF Tyres in Kovilpalayam”.

OBJECTIVES OF THE STUDY

1. To know the consumer preference towards MRF tyres in Kovilpalayam.
2. To know the attributes which creates customer satisfaction among MRF tyre users in
Kovilpalayam.
3. To know the satisfaction level of the customers with the MRF tyres.
4. To know the valuable suggestion from the tyre dealers.

SCOPE & LIMITATIONS OF THE STUDY

 The study is purely based on the survey conducted in kovilpalayam and has focused on
customers.
 The study covers the information about the mind set which may varies from situation
& where the respondents may not be able to give required and accurate information.
LIMITATIONS:
 Due to respondents busy schedules, the interests shown by respondents to answer the
questionnaire may be less. This may have resulted in collecting inaccurate
information.
 Due to time and cost constraint the sample size selected is 95.
 The selected sample size is small as compared to the total number of customers.
 Hence the obtained result may not be accurate as it may not represent the whole
population.
 The project is open for further improvement of the work.
 REVIEW OF LITERATURE
In a competitive marketplace where businesses compete for customers, customer satisfaction
is seen as a key differentiator and increasingly has become a key element of business
strategy. Measuring customer satisfaction Organizations are increasingly interested in
retaining existing customers while targeting non-customers; measuring customer satisfaction
provides an indication of how successful the organization is at providing products and/or
services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and recommend rate. The level
of satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed.
Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten 'Quality
Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known
as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value,
Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front
line Service Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and are
most often utilized to develop the architecture for satisfaction measurement as an integrated
model.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides
the basis for the measurement of customer satisfaction with a service by using the gap between
the customer's expectation of performance and their perceived experience of performance.
This provides the measurer with a satisfaction "gap" which is objective and quantitative in
nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of
combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of performance
according to expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of [Link] usual measures of customer
satisfaction involve a survey with a set of statements using a Likert Technique or scale. The
customer is asked to evaluate each statement and in term of their perception and expectation of
performance of the organization being measured.
RESEARCH DESIGN
A research design is purely and simply the firm work or plan for study that guides the collection
and analysis of the data.
Descriptive Research Design
Descriptive research design is none that simply describes something such demographic
characteristics of consumer. Who use products that descriptive study is typically concerned with
determining the frequency with which something occur.
Sample Size
The study based only on the Behaviour of consumer. Total number of sample taken for the study
is 51 respondents.
Location of the Study
The location of the study is in Kovilpalayam.
Sample Design
Convenience sampling techniques were used for the study.
Types of Data
 Primary data
 Secondary data
The nature of data collected for study are primary and secondary data. Primary data are those
which are collected as firsthand information. Secondary data are those which are collected from
magazines, books, newspaper. etc.,
Primary Data
Data observed or collected directly from first-hand [Link] is collected through
questionnaire.
Secondary Data
Secondary data include those data, which are collection from some earlier research work and are
applicable to the study the researcher has presently undertaken.
Tools used For Data Collection
Total undesigning research, analysis data and drawing conclusion most research studies result in
large volume of raw data, which must be suitably questionnaire is used as data collected too. A
questionnaire consists of a set of question presented to respondents for the answer to be filled by
them. A structural non-disguised questionnaire is adopted of this study.
Techniques used for Data Analysis
The role of statistics is research is to function as a so that the same can be read easily and can be
used for further analysis. Percentage (%). The data are reduced standard from with the base equal
to 100.
SUGGESTIONS
 Some of the respondents feel that the price high. Hence it should be revised.
 Some of the respondents feel the size of the packages moderate.
 Some of respondents are feel that changes may be needed in the style of the tyres which
can prolong the
 durability and performance
 Some of the of the respondents feel to improve the availability.
 Some of the respondents suggested reduced price.
 In future JUMBO & TVS will be competitor for MRF tyres.
CONCLUSION
The study gives a detailed report on consumer behaviour towards preference of MRF tyres. It is
from this research is calculated that the customers are satisfied with the MRF tyres performance
and special feature of the tyres. but some important have to be made in reducing the price of
MRF. As the other brands like TVS and JUMBO are familiar among the customers and these
brands are available by improve promotional strategies. so MRF tyres has to come up long way
to attain good position in the market. In the market the MRF tyre´s showroom should show be
very vigilant in retaining existing customer and they have to adopt needed strategies to get their
potential customer.
BIBILOGRAPHY
[1] Philop Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwarjha, Marketing
management, 13th Edition, 2009,
Pearson Deucation Inc, New Delhi.
[2] East, R., Wright, M. & Vanhuele, M. (2013) “Consumer Behaviour: Applications in
Marketing” 2nd edition.
[3] Hoyer, W.D. & Macinnis, D.J. (2008) “Consumer Behaviour”, 5th edition,
[4] Hoyer, W.D., Macinnis, D.J. & Pieters, R. (2012) “Consumer Behaviour” 6th edition.
[5] Kacen. J. J. and Lee. J. A., (2002) “The influence of culture on consumer impulsive buying
behaviour”, Journal of
consumer psychology.
[6] Arunkumar & [Link], marketing management, 2007,Vikas Publishing House Pvt Ltd,
New Delhi.