Impact of Brand Building on Distributor Sales
Tyre Industry in India
Technology generation in the Indian tyre industry has witnessed a fair amount of expertise and versatility to absorb, adapt and modify international technology to suit Indian conditions. This is reflected in the swift technology progression from cotton (reinforcement) carcass to high-performance radial tyres in a span of four decades. Globalization has led to the linking of the economies of all the nations and therefore major Indian players in the tyre industry are pursuing global strategies to enhance their competitiveness in world markets. The present section broadly undertakes an overview of the Indian tyre industry through an examination of its growth trends with respect to production, exports and acquisition of technological capabilities.
• At present there are 40 listed companies in the tyre sector in India.
• Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per cent of the organized tyre market. The other key players include Modi Rubber, KesoramIndustriesand 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 significant players in the industry.
• While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres.
• The industry is a major consumer of the domestic rubber market. Natural rubber constitutes 80% while synthetic rubber constitutes only 20% of the material content in Indian tyres. Interestingly, world-wide, the proportion of natural to synthetic rubber in tyres is 30:70
The study explains the impact of brand equity on the distributor sales. The objectives of this study were to determine the impact of brand and its relationship with distributor sales, and do brand leads to satisfaction of people and make recommendations to the policy makers in the organisation to improve sales based on research finding. The study utilized research design and 200 customers. Hypothesis was formulated to test the relationship between brand and sales.