The Marketing mix of Ceat analyses the 4Ps of Ceat, including the Product, Price, Place, and Promotions. Ceat is a public company under the flagship of RPG Enterprises. It was founded in 1958 and is headquartered in Mumbai, India. This Indian company deals in tires and is related to the automobile industry. Improved infrastructure has resulted in heavy demands for tires, which have been met successfully through superior and high-quality products.
It has set up six parameters for self-evaluation, including trustworthiness, quality, credible image, innovation, value, and understanding all the pricing strategies. Brand Ceat has been rated the Most Trusted Brand by its loyal customers. Its competitors in the local market are.
- MRF
- Apollo
In the international market are-
- Michelin
- Bridgestone
Some of its main customers are.
- Tata Motors
- Bajaj Tempo
- Maruti
- Ashok Leyland
About Ceat Tyres
- Type: Multinational tire manufacturing company
- Industry: Tire manufacturing
- Founded: 1958
- Founder: RPG Group
- Headquarters: Mumbai, India
- Area served: Worldwide
- Key people: Harsh Mariwala (Chairman)and Anant Vardhan Goenka (CEO)
- Number of employees: 13,000
Table of Contents
Ceat Tyres Product Strategy
Ceat has a tremendous global presence and is currently the second-largest tire manufacturer in India. It was the first of the tire manufacturers to get ISO/TS certification. It offers qualitative products to its customers and can produce 95,000 tires daily.
CEAT’s product mix includes a variety of tires catering to different vehicle types. The new Product Mix of Ceat in 2023 is as follows (Source).
- Car Tyres: Designed for various car models from manufacturers like Maruti, Hyundai, Honda, Toyota, etc.
- SUV Tyres: Tailored for sport utility vehicles.
- Bike Tyres: For motorcycles compatible with brands like Royal Enfield, Honda, Hero, Bajaj, Yamaha, etc.
- Scooter Tyres: Suitable for scooters from various brands like Honda and Suzuki.
- Commercial Tyres: For heavier vehicles used in commercial applications.
- Agriculture & OTR (Off-The-Road) Tyres: For agricultural and other off-road uses.
Ceat Tyres Place Strategy
Ceat is a global tire company and one of the strongest Indian brands, and it exports its products to nearly one hundred and ten countries in the world, including parts of Asia, Africa, and the USA. It has six manufacturing plants in places like Baroda, Nashik, and Mumbai. It has three plants for two and three-wheelers and ten outsourcing units for flaps, tubes, and tires. Its research and development plant is very advanced and is located in Halol. Their distribution network is pervasive and includes the stockiest and 3500 dealers all over the country.
The company has divided the sub-continent into 33 regions, with a local office for every region. Factories send the tires to RDC or regional distribution center and from here to 112 CFA or carrying-forwarding agents who then manufacture tyres and supply them to dealers as per demand. In a few cases, the RDC supplies tyres directly to dealers. For the international market, the company has tie-ups with distribution channels of other companies, who work efficiently to provide quick results.
The place strategy of CEAT encompasses various aspects to ensure widespread availability and accessibility of their products:
- Extensive Dealer Network: CEAT products are distributed through a vast network of dealers and retailers, ensuring widespread availability across different regions.
- Online Sales Channels: CEAT has embraced e-commerce platforms, allowing customers to purchase tires online, catering to the growing digital consumer base.
- Strategic Partnership with Automobile Manufacturers: CEAT collaborates with various automobile manufacturers, supplying tires as original equipment.
- Global Presence: CEAT has a significant international presence, exporting to various countries, which broadens its market reach.
- Specialized Outlets: The company operates exclusive brand outlets, offering a wide range of tires and providing specialized customer service.
Ceat Tyres Pricing Strategy
Ceat has been positioned among the five top Indian companies in terms of its sales revenue. It occupies 12% of the market share, and the most profitable tire company earns more than 50% of its revenues from buses and trucks. The company offers premium quality products but has kept its pricing policy reasonable. It believes affordable prices will result in larger sales figures and more significant revenues. To deal with rising competitors, the company has also followed a competitive pricing policy, and under this, it periodically undertakes a valuation process and sets up its prices accordingly. 2011, the company announced price cuts to deal with its competitors and volatile market demands.
CEAT’s pricing strategy is carefully crafted to balance market competitiveness with profitability. Here’s an overview of seat pricing strategy:
- Market-Based Pricing: CEAT sets prices by market standards, considering factors like competition, customer demand, and market conditions.
- Product Segmentation Pricing: Different pricing strategies are employed for various product segments, such as passenger vehicle tires, commercial tires, and two-wheeler tires, to cater to the specific needs and price sensitivities of each segment.
- Value-Based Pricing: Prices reflect the quality and features of the products, ensuring customers perceive they are receiving good value for their investment.
- Dynamic Pricing for Fluctuating Costs: In response to changes in raw material costs and other operational expenses, CEAT may adjust prices to maintain margins while staying competitive.
- Promotional and Seasonal Pricing: CEAT utilizes promotional pricing strategies, including discounts and offers, to boost sales during specific periods or for certain products.
Ceat Tyres Promotion Strategy
Ceat spends nearly forty crore rupees annually on its marketing and promotional strategy. Its tagline is Born Tough; Take it on, and its logo includes a rhino picture. Brand Ceat is one of the most visible faces in India because of its association with cricket. It was the first to introduce the Ceat-cricket-rating system in the international arena. One of its most promising ad campaigns that received critical acclaim and awards was The road is full of idiots. The company has made a deal with CCD to promote its brand through CCD outlets. Ceat has associated itself with numerous programs on television, like MTV Roadies. It was a sponsor of MTV-Chase, The Monsoon Season 3.
Its promotional activities include running contests by engaging consumers and giving away interesting gifts or coupons. Other activities include teaching safe road habits to children and building brand awareness through social media. It also promotes safe driving through its association with Party-Hard Drivers. The company has received a Gold Award for Best Use of Mobile Media.
Some Recent Video ads and Print ads of Ceat are:
CEAT 2-Wheeler | Change Soon It’s Monsoon – YouTube
Liked this post? Check out the complete series on Marketing Mix
