WOXSEN SCHOOL OF BUSINESS, HYDERABAD

Post Graduate Diploma in Management (PGDM)

Batch 2018-20
(Approved by AICTE)

Project Report
ON

B2B MARKETING

Report Prepared By: -

P. Ashok Kumar D.L. Praveena

1821022 1821079
th
27 March 2020 th
27 March 2020

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 Executive Summary

This is an attempt to know the theories can be applied to

practical situation. It’s been a wonderful opportunity to know
how well we can negotiate the plans and identify the
opportunities. It is part of study for everyone in this course. I
got the opportunity to study on Mahindra.

In the first part of the project report, the general information

of the company has been collected. Information is gathered
through the primary and secondary source as well.

In the second part of the project report, contains the

specialized subject and each area of study. Objective of the
project is to work on the different areas and come across the
internal and external environments of the company and its
business units.

Goals indicate what a business unit wants to achieve. Strategy

is an action plan for getting the goals. Every Business must
design a strategy for achieving its goals, Consisting of a
Marketing strategy, and a compatible technology strategy
with proper sourcing strategy.

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 TABLE OF CONTENTS

S.No. CONTENT Page no

Executive Summary 2
1
Introduction

1.1 Objectives of this report

1.2 Major findings

2
Company profile

2.1 About the company

2.2 Strategic business units

3
Evidence of Servitization

3.1 Product Analysis

3.2 Servitizing products of company

4
Future Scopes of Servitization

4.1 New possibilities of servitization

4.2 Identify servitization of products

5
Conclusion

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 INTRODUCTION:

About The Tyre Industry,

The tyre industries in India come into existence with establishment of

trading outlets by U S based Fire Stone Tyre and Company in1922 and
followed by Dunlop Rubber Company in 1926.The Indian Tyre industry
has witnessed a Cumulative Annual Growth Rate (CAGR) 7.7% over the
last decade. Economic expansion, investments and road developments
have all contributed to this

Increase in demand for vehicles. This has helped the growth in the tyre
industry. The tyre industry is the major consumer of the domestic rubber
production. The tyre industry is mainly dominated by organized sector;
the unorganized sector holds in bicycle tyres. The major players in the
organized sector consist of MRF, Apollo tyres, ceat, and J K Industries,
which account of the 63% of the organized tyre market.

About The Company

MRF Ltd was established in the year 1946. The company name
is an acronym for “Madras Rubber Factory”. It was started by KM
Mammen Mappillai at Thiruvottiyur Chennai. In the year 1951, the
company took up the manufacture of trade rubber. MRF Ltd was
incorporated towards the end of 1960 and was converted into Public
Limited Company in 1961. Since then it has emerged as the largest tyre
manufacturer in India and 12th largest in the world with turnover of Rs
5800 Cr. with capacity of six million tyres from six production units in

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India. With a profit margin of 1.3% in tyre manufacturing sector, MRF
hold 24% of market share. MRF tyres are rolled out of six interdependent
facilities, which are built over 450 acres and with over 15,000 dedicated
people. MRF has over 3000 strong dealer network with 180 offices. What
this means is that the company boasts of the largest range of tyres in India
- from heavy duty truck tyres to 2-wheeler tyres, The MRF Pace
Foundation is synonymous with training and teaching the world's best fast
bowlers.

Production units of MRF are located at:

1. Tiruvittiyur ,Tamil Nadu

2. Kottayam, Kerala

3. Medak, Andhra Pradesh

4. Arkonam, Tamil Nadu

5. Pondicherry

6. Ponda, Goa

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 7. Sri Lanka.

OBJECTIVES OF THE STUDY

• To study about the operations performed at various levels of

departments.

• To know the quality standards of the products.

• To know about MRF Ltd as an organisation

• To know the functioning of the various departments

• To observe the routine activities of the workers in various level

• To understand the organisation structure.

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 CHAPTER 2

COMPANY PROFILE

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COMPANY PROFILE

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 this long golden 60 years it has emerged as the largest tyre
manufacturer in India. It is also the world’s 13th 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

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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,

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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

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 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.

Superlug - 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 six production units of MRF are located in:-

1.Tiruvottiyur, Tamilnadu. For automobile tyres.

2.Arkonam, Tamilnadu. For bicycle, scooter, auto rickshaw tyres.

3.Goa for automobile tyres and procured tread rubber.

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 4.Kottayam, Kerala. For automobile tyres, tubes, procured tread
rubber.

5.Medak, Andrapradesh. For automobiles.

6.Pondicherry for radial tyres.

EVOLUTION OF MRF

A race from the birth to success…………

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

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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

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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

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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

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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.

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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

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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.

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2008

MRF wins the JD Power award again for the 6th time

Present

It is also involved in a range of other activities via subsidiaries.

Funskool India, a Joint venture between Hasbro and MRF, is a major
toy manufacturing company in the country. MF 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. Mermen Mapp illai

POLICIES OF MRF

1. QUALITY POLICY

The main quality objective of the company is to ‘maintain market

leadership through continuous quality performance”

2. 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.

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 3. 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..

4. TRAINING POLICY

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 The training policy of MRF LTD. is ‘to provide and develop
knowledge, skills and behaviour 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 lead by

Mr. K.M.Mammen, son of Mr. Mammen Mappillai who started this

company almost 60 years ago.

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 BOARD OF DIRECTORS

K.M. Mammen – Chairman & Managing Director

Arun Mammen – Joint Managing Director

K.M. Philip – Whole Time Director

Dr. K.C.Mammen – Director

C.G.Rangabashyam – Director

K.D. Parakh – Director

Ashok Jacob – Director

S. Nandagopal – Director

V. Shridhar – Director

Vijay R. Kiriloskar – Director

N. Kumar – Director

Ranjith I. Jesudasen – Director

D.M. Choksi – Secretary

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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’

AWARDS AND ACHIEVEMENTS

TNS

MRF voted the "Most Trusted" Tyre Company in India by TNS 2006
global CSR study.

J D POWER ASIA PACIFIC

MRF won the award for customer satisfaction not once but 6 times in
the last 7 years.

CAPEXIL

MRF won the award for exports.

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(MRF, 2010)

BRAND AMBASSADORS

Former brand ambassadors

Leading batsmen in world cricket - Sachin Tendulkar, Steve Waugh,

and Brian Lara.

Current brand ambassadors

India – Virat Kohli

COMPANY’S PRODUCT PROFILE

Automotive tyres are main products of the company

➢ 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

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 ➢ 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

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 ➢ 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.

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CORPORATE GOVERNANCE

MRF’s philosophy on corporate governance envisages the

attainment of the highest level of transparency, accountability and equity
in all facts of its operations and all its interaction with its stakeholder. In
furtherance to the above company has compiled with the cores.

MRF – KOTTAYAM UNIT

MRF tyres, Kottayam are one of the most modern plants that were
established in 1969 at Vadavathoor about 7 km from Kottayam town in
the state of Kerala. About 10 crores of land was purchased in Vadavathoor
village 1968 and the foundation stone for the factory building was made
by late Sri.K.M. Cherian, a factory building with in the area of 34200 sq.ft
flat was constructed during the period of 1968 – 69 and Ban- bury of 3A
size with a capacity of to mix of 10 meter per day was erected and
commissioned on 21st July, 1969, with the strength of seven workmen,
but presently it is most advanced technology mixing 10 and a full- fledged
manufacturing unit providing work and technologies.

In the view of high productivity and very good performance in

general, the mixing capacity was enhanced by installing a second Ban-
bury of 11 A size with a capacity to mix 48 meter per day during March
1970, with the permission of Goa Government A license to manufacture
4 lacks of automotive tube per annum was transferred and started
production of tubes with seven quarrying presses.

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 To enhance the mixing capacity Ban-bury of 1 ID size with a
capacity of 54 meter per day was established in 1972. The number of tube
presses was increased to 45 presses. A fourth Ban-bury of 1 id size was
installed in 1978 to meet the increasing demand for mixing. At present
6000 tones of various compounds are dispatched to different units. The
level of the tube production has been increased technology and now it has
touched a level of 3 lakh number per month.

Another new product introduced in MRF Kottayam unit during

1993 was flap production. The management also decided to stilt tyre
production in Kottayam unit taking amount of the various incentives on
tax and power announced though a new industrial policy by the Kerala
Govt. the tyre plant with an initial plan to produce 200 numbers of tractors
rear to 600 numbers of tractors front tyres per day inaugurated by
Chairman Sri. K.M.Mammen Mappilai on 30th May 1994.

The present turnover of finished goods of kottayam units is Rs.

350 crores per annum. Kottayam units also started procured tread rubber
(PCTR) production in August 1993. Their fourth place started in 1998.

The present lack of production is 450 mt of PCTR per month.

Regarding repair materials accrued 70 mt of PCTR cushions ZEG
cushions are manufactured and sent all over India. The working capital
required per month by the Kottayam unit constitutes more the Rs. 20
Crores. The company mainly goes for credit transaction and the payment
is made within one month time duration.

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TRADE UNION

• MRFEU - MRF Employee’s Union(CITU)

• MRFEA – MRF Employee’s Association(INTUC)

PLANTS WITHIN KOTTAYAM UNITS.

The kottayam production unit of MRF has got four plants mainly

1. Tube Plant
2. Tyre Plant
3. Mixing Plant
4. PCTR Plant

Products at Kottayam Plant

Automotive tyres, tubes, conventional tread rubber, pre-cured tread

rubber, repair materials, vulcanizing solution, flap, bladder, envelope,
curing bags and solid tyre.

1. AUTOMOTIVE TYRES

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 This is the basement on which the whole super structure of
automobile rests. Here only conventional or bias tyres of passenger,
jeep, truck and farm tyres are manufactured.

2. AUTOMOTIVE INNER TUBE

This component is kept inside the tyre and when inflated, renders
strength and impacts profile to the tyre.

3. RETREADING RUBBER

It is the material used for retreading the tyre when it gets worn out
on usage. These are of two types, conventional and pre-cured tread
rubber (PCTR).

4. TYRE REPAIR AND PCTR REPAIR MATERIALS

These include PCTR cushion, tread backing cushion. E.g. cushion

used for the repair of tyre and PCTR.

5. VULCANIZING SOLUTION

This is an aid for vulcanization and is used for retreading of tyres.

6. FLAP

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 This is kept in between the tubes and tyres. This serves as a
protective sheath for the tube from the external damages of the tyre
and also as isolation medium, which filters the passage of the heat
from the tyre to the tube. This is generally used for bigger tyres.

7. BLADDER

This is an element used for curing of tyres, which carries the

internal media and is mainly used for captive consumption.

8. CURING BAGS / ENVELOPE

It is also used for retreading of tyres. It is spread as a layer over the

tyre after application of PCTR and it retains thermal input
processes of manufacturing tubes and tyres.

9. MASTICATION

The Kottayam plant caters the stock requirement of all the other
MRF LTD. units. Mastication is one of the principal activities of
the Kottayam unit. The stock generated is also used for captive
consumption. The main ingredients for mastication are polymer
(rubber), carbon, chemicals and oils. The process of making a
homogeneous mixture is carried out in banburies and mills.

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INTERNATIONAL CERTIFICATIONS

The Kottayam unit of MRF LTD. has got four different categories of
International certifications from the respected authorities. They are as
follows:

1. ISO – 9001-2000 QUALITY MANAGEMENT SYSTEM

This is the quality management system and quality assurance

standard brought into force by the International Standard
Organisation (ISO), a certification comprising of the state of the
world facility which aims at the standardization of the quality of
the products and services to cater to the complete satisfaction of the
customer.

2. ISO – 14001-1996 ENVIRONMENT MANAGEMENT SYSTEM

This is the quality assurance standard prepared for the automobile

and related companies. Through this certification, MRF LTD. is to
manufacture their products in an environment friendly and safe
manner.

3. ISO TS: 16949

Up gradation of ISO – 9000 from 1 July 2000. It is more customers

oriented and works in plan-do-check-act policy. TS – 16949 is
awarded for certification of technical standards in this industry.

4. CQC

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 KOTTAYAM UNIT – FACTS AND FIGURES

Built-up area Six lakh square feet

Management staff 252

Regular workmen 1115

Casual workmen 399

Total finished goods production 3400 MT/ month

Total turnover of finished goods Rs.42 crores/ month

Mixed stock sent to other units 7000 MT/ month

Tyre production 52000 tyres/ month

Total production of tubes, 263000/ month

envelopes and curing bags

Flap production 82000/ month

Tread Rubber Production 160 MT/ month

(conventional)

PCTR production 330 tonnes/ month

Repair materials 83 tonnes/ month

Vulcanizing solution 32500 liters/ month

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Work timings

Work is carried out at the company 24 hours a day. There are three
shifts in a day consisting of eight hours each. Besides those shifts there is
also a general shift for the management staff of the company. The shift
timings are as follows:

First shift : 7 am to 3 pm

Second shift : 3 pm to 7 am

Third shift : 11 pm to 7 am

General shift : 8 am to 4.30 pm

MARKETING

Tyre and tyre related products are sold under the brand mane
“MRF”, and distributed in domestic markets through sales offices,
dealers, and franchisees. Conveyor Belts are sold under the brand name
“MRF Muscle Flex” to customers directly from Conveyor Belting plant
at Arkonam.

The major OEM (Original Equipment Manufactures) customers

of MRF tyre and Re Ford India Ltd., General Motors India Ltd., Maruti,
Hindustan Motors, TATA Motors, Ashok Leyland,

Honda Siel, Hero Honda, Bajaj, LML Ltd, Honda Motors & Scooters
India Ltd., Mahindra & Mahindra, Eicher Motors, New Holland Volvo,

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 etc. The major Conveyor Belting customers are Cement/ Steel / Fertilizer
/ Thermal Power plants, mines and ports.

MRF exports tyres and tubes through authorized agents

representing countries such as USA, Canada, Mexico, Brazil, Chile,
Australia, Philippines, Bangladesh, Sri Lanka, Korea, Egypt, Nigeria,
South Africa, Ghana, Kenya, Mauritius, UAE, Afghanistan, Pakistan,
Iran, Iraq, Bahrain,-Qatar, Oman, Lebanon, Greece, Turkey, Malta, UK,
Uzbekistan etc. MRF conveyor belts are exported to Australia, South
Africa, Europe, Canada, Middle East etc.

ORGANISATION CHART OF MRF KOTTAYAM UNIT

General Manager

Plant Plant Plant HR Plant Plant Quality Plant Plant Senior Plant
Production Accounts Manager Technical Assurance Industrial Security Engineerin
Manager Manager Manager Manager Engineering Officer g Manager
Manager

Manager Assistant General Technical Quality Assistant Security Electrical

Officer Assurance Officer Maintenanc
Plant I Manager Supervisor Time Officer Manager e Civil
office Engineering
Plant II Mechanical
Maintenanc
e
Technical Quality
Supervisor Assurance
Supervisor Guards
Staff Operators
Supervisor
Foreman

Staff Workers Operators Operators Workers Supervisor

Supervisor
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MRF Marketing strategy

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.

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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.

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2. ‘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!

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Chapter - 3
Servitization

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Servitization in Manufacturing

The emergence of Product-as-a-Service concept has challenged the

notion of product-focused manufacturing processes for both
manufacturers and their industrial customers. Product offerings, bundled
with value-added service propositions, promise to yield profits for
manufacturers. With services surfacing as stable revenue-generating
streams, it has necessitated comprehensive business model
transformation—including rethinking strategies and the building of new
capabilities. A model where the outcome or services are sold as a
product, ensuring that customer needs are met while boosting the
performance of the core product - is known as 'servitization'.
Manufacturers must initiate a transition of operations, shifting from a
product-oriented to a more customer and outcome-focused functional
framework to sustain and grow in the emerging economy.

The Growing Importance of the Service Business

The shift in the value proposition, from production activities to the
fulfilment of customer demand has necessitated additional related
functions to ensure adequate balance in value-creation. The function of
formulating a contract is crucial for manufacturers who are striving to
develop and grow their service business. Although a robust and well-
defined contract can impact product sales negatively, it leads to an
overall increase in revenue. For physical assets, the traditional contract
entails a discrete demarcation of the sales transaction and after-sales
product lifecycle support. Maintenance-repair-overhaul (MRO) costs
are, for instance, considered inevitable for the buyer. Performance-based
contracts, on the other hand, determine the provider's revenue, based on
defined performance metrics. This means that customers do not pay for
tasks undertaken but the performance outcomes. These are the different
types of service contracts that are formulated between the provider and
customer, in decreasing degree of profit potential.

Performance-based, or outcome-based contracts

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Time and material contracts

Spare parts sales and maintenance contracts

MRO Contract

Servitization as a Strategic Competitive Differentiator

As manufacturers adopt the role of a service provider to transform
customer experience—using a business model rather than product-based
innovation—it creates new revenue streams. The focus shifts from
'increasing product sales' to 'increasing product consumption'

Servitization directly links revenue generation to asset availability,

reliability, and performance. Many industry-leading manufacturers are
offering pay-per-use contracts, where the user does not own the
equipment, but only pays for the time and amount of usage. With strong
focus on product and service outcomes, manufacturers are able to
servitize their products across the entire business life cycle. This creates
a completely new value system for customers that helps lock in long-
term customer relationships and lock out competition. nA competitive
advantage, specifically in areas where scope for product differentiation
is eroding and customer expectations of performance is increasing.
Mutual incremental value creation between manufacturers and
customers that extends beyond a one-time sales transaction and paves
the way for repeat sales.

Challenges in Implementing Servitization

While servitization promises to ensure potent competitiveness with
rapid growth, revenue, and profit-making opportunities, the real-world
scenario reveals that it is often difficult to achieve the desired ROI in
services. This is mainly due to the fact that ROI on building and
maintaining products for servitization require a high utilization of
equipment and services. These are some challenges confronting
manufacturers:

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 • Shifting mind-sets for a transformed organizational strategy
• Managing time scales while designing the service
• Facilitating functional and organizational realignment
• Supporting overarching organizational change
• Managing geographical and cultural diversity

Manufacturing companies can adopt the proposed framework to

reimagine their entire service lifecycle, without disrupting their existing
operations. This can help manufacturers drive quicker issue resolution,
and provide predictive and proactive maintenance while delivering a
consistent brand experience.

Services provided for MRF products

❖ Computerised nitrogen inflation

❖ Tubeless repair

❖ Wheel alignment

❖ Wheel balancing

❖ Tyre changing

Purest nitrogen filling

 Every MRF T&S outlet has a Nitrogen gauge that guarantees a

95.5% purity level. This is the highest grade of Nitrogen that can
be used to inflate tyres

Wheel alignment

❖ With the help of LASER and 3D technology, MRF make sure that
your wheels are accurately aligned. This helps improve handling
and steering.

Wheel balancing

❖ With the help of advanced computerised wheel balancing, MRF

ensure that your ride is smooth and your tyres last longer.

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Chapter -4
Future scope of servitization

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Servitization has the potential to impact the way field service is managed.

Technician as lead generators

In the past manufacturing companies viewed their field service

departments as a cost of doing business. Now manufacturers that have
adopted servitizatrion and mobile technology are viewing their field
service technicians as vital lead generations

Greater Need for a Mobile Management System: As manufacturers

continue to benefit from service contracts, the need for mobile field
service management continues to grow. Servitization depends on strong
customer support, which only comes with high first-time fix rates and
immediate help when needed. The only way to manage this data,
monitor remote equipment, and manage complex workflows is through
a central field service management system.

Industrial Internet of Things Growing in Importance: As contracts

include more advanced service requirements for their products, field
service data will become more dependent on the internet of things. With
services like tracking products remotely and taking preventive measures,
manufacturers will rely on the power of IOT to inform their service
efforts

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 CONCLUSION

Madras Rubber Factory mobilized itself as the

market leader. The strong performance of MRF is because of combined
efforts of management and employees. MRF provides high quality and
technologically superior products to its customers. The company has the
provision to find out which tyre is manufactured by which worker. The
effective management along with successful workers is very dedicated
and is aware of new developments taking place in the industry. There is
“no compromise on the quality policy” makes them King of Kings in tyre
industry. If they implement the suggestion put forward, will help them to
improve profit and helpful for the workers. So the company can attain
global standard through continuous improvement in the quality products
and service in order to maintain market leadership and can be the king in
tyre industry for many years.

As customers continue to expect additional benefits and long lasting

relationships with their dealers, more manufacturing companies will add
service contracts to their product sales. The industry keeps growing in
complexity, highlighting the needs for a mobile management system and
strong customer service. In return, manufacturing that take advantage of
the opportunity in service will become more financially secure and build
stronger customer relationships.

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