Brand Management

Market Share and Customer Satisfaction Index of Apollo Tyres: An Empirical Study on Tire Sales in West Bengal, India

Article Details

Pub. Date	:	Sep, 2022
Product Name	:	The IUP Journal of Brand Management
Product Type	:	Article
Product Code	:	IJBRM030922
Author Name	:	Kaushik Mahalder and Sarbani Mitra
Availability	:	YES
Subject/Domain	:	Marketing
Download Format	:	PDF Format
No. of Pages	:	26

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Abstract

The paper determines the market share of Apollo Tyres in comparison with other heavy duty tire manufacturers in West Bengal. It further determines the Customer Satisfaction (CSAT) Index for truck/bus tire segment. Finally, the study ascertains the relation between market share and CSAT index. As per fitted tires in 500 truck/bus and 483 dealers in different markets (Dhulagarh, Dankuni, Haldia, Durgapur, Contai, Krishnanagar, Rampurhat, Dhuliyan, Mathabhanga, Malda, Raiganj, Siliguri and Coochbehar) of West Bengal, MRF had the highest market share followed by Apollo, Ceat, JK and Continental. As per the customer survey of 500 customers on different operational parameters (initial tread mileage, tread wear pattern, casing value, new tire price, claim return, service assistance and other parameters) MRF again led with a rating of 4.8, followed by Apollo (4.7), Ceat, JK and Continental. Feedback based on CSAT Index showed a similar pattern. Finally, this study has found that in the case of the truck/bus tire segment in West Bengal, CSAT index of top 5 brands is directly proportional to the market share of the brands.

Introduction

Due to population growth and increasing disposable incomes, demand for vehicles is increasing day by day. As a result, the global tire market is sharply rising. In car market, China is one of the largest markets in terms of the demand for passenger vehicles in the country. China has been the largest tire market in the world since 2017, as the robust car industry in the country is aiding its tire market. It accounted for nearly half of the industry.1 India, being another major tire market, is also witnessing a rising demand for automobiles, not just from the domestic market but also from the growing overseas market. Thus, the increase in exports is also driving the India tire market.

Even the growing electric vehicles market is expected to impel the tire industry in the coming years. Governments, globally, through implementation of stricter emission laws and providing subsidies to both the manufacturers and consumers, are incentivizing the use of electric vehicles. Electric vehicles are expected to account for 15-30% of the total vehicle sales by 2030.2 Major players in the tire industry like Hankook and Goodyear are promoting e-vehicles and are launching products to combat the faster wear of tires in e-vehicles because of their high-torque accelerations.