CEAT Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of CEAT through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
CEAT Product Strategy:
Ceat is a leading tyre manufacturer from India. With products ranging from Ceat Grip, Ceat Zoom, Ceat Little Master, Ceat Secura Sport, Ceat Vertigo Sport and several high mileage tyres for application in the heavy commercial industry. All these are the product strategy in the marketing mix of Ceat tyres. Ceat manufactures a variety of tyres for Truck and Light commercial vehicles, solid and pneumatic vehicles, farm and industrial applications, cars and SUVs, motorcycles and scooters etc. With a manufacturing capacity of close to a lakh tyres per day, Ceat also caters to the flap and tube markets. Flaps are used by almost all modern passenger cars and tubes by many motorcycles and scooters (although Ceat manufactures tubeless tyres for the two wheeler segment also)
Image: company website
This concludes the product strategy in CEAT marketing mix & strategy.
CEAT Price/Pricing Strategy:
Below is the pricing strategy in CEAT marketing mix strategy:
Ceat is a leading tyre manufacturer and has a competitive pricing. With an annual turnover of Rs 3500 crore and an employee strength of more than 5000, Ceat is one of the most trusted tyre brands in India and faces stiff competition from MRF, Bridgestone and TVS tyres and therefore must price its products competitively.
With an ISP/TS 1649 2002 certification, Ceat can however command a higher price from the market for similar products because its superior quality products easily match those of internationals standards. With a strong brand image and R and D initiatives like tubeless rubber, and various off road applications tyres for SUVs and trucks Ceat tyres can sometimes command a premium. Several specialized tyres are priced slightly higher because they can be sued for traversing such difficult terrains as snow, mud, grass, muck and rocks. Of all the pricing strategies used by other tyre manufacturers in the country Ceat utilizes the perceived value and target pricing strategies. This gives an insight in the Ceat pricing strategy.
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CEAT Place & Distribution Strategy:
Following is the distribution strategy in the CEAT marketing mix:
Ceat is a recognized local as well as global tyre company. Ceat exports its tyres to more than 110 companies. With its mission to become the most profitable tyre company in 2016 in India, it is relying on high GDP growth, increased local demand as well as an increased international demand. One of the most important aspects of Marketing is the ‘place’. With a wide distribution network in India, Ceat clearly has its mission of total customer satisfaction clearly in sight.
Its wide network of distributers, dealers and retailers that Ceat tyres for all applications are available in each state and even in remote rural places.
CEAT Promotion & Advertising Strategy:
The promotional and advertising strategy in the CEAT marketing mix is as follows:
Ceat focuses a lot on marketing its products, and has managed to do that quite effectively in its promotional strategy. It is one of the most challenging tasks to get the message of high quality Ceat tyres across to customers, given the number of competitors in the market. Promotion helps in convincing buyers that they are getting their money’s worth and that their product is the best in the segment. With an average spend of around 40-50 lakhs on marketing of which 2/3 is spent on BTL and the rest is spent on ATL promotions. One famous Ceat bike tyre advertisement was very successful in driving home the point of road safety, wherein a biker encounters a couple of idiots on the road who make riding unsafe and also jeopardise their own safety. From tying up with CCD and Roadies on MTV, Ceat has made its presence felt when it comes to visibility. Apart from these they also mark their visibility in shopping complexes, markets, local bazaars, highways, near mechanic shops and often near petrol pumps. Hence, this concludes the marketing mix of Ceat tyres.
About CEAT:
Ceat, a leading manufacturer of tyres in India, was established in 1958 and was sold to Pirelli in 1970. Taken over by the RPG group in 1982. Its tag line is Take It On. Ceat manufactures a variety of radial tyres for the following segment of automobiles forklifts, earthmovers, tractors, motorcycles, scooters, earthmovers, trucks and busses, light and heavy commercial vehicles as well as cars and motorcycles. Headquartered in Mumbai, Ceat manufactures tyres at the following locations – Nashik, Mumbai and Halol. Ceat has a total market share of 20% of the local truck and the light truck manufacturing market, 11 % of the India tyre industry.
It is the owner of 6 manufacturing plants, 10 units for the outsourcing of tyres, flaps and tubes. Under the Make in Maharashtra, Ceat plans to pump in close to 400c crores for the setting up of a new plant in Butibori near Nagpur.
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