2W & 3W | Nagpur Market Visit Highlights
| Finding | 4P | Place | Segment | Brands | Follow-up |
|---|---|---|---|---|---|
The scooter discount or GST reduction for 2W tyres has no impact on sell-out prices, as both are absorbed by sub-dealers/distributors as extra profit. Pricing Impact | Price | Nagpur, Maharashtra (West) | 2W | Apollo | Continue with the 2W Gold Scheme to gain market share. The current scooter product discount and trade discount are boosting distributors' profitability in-turn driving Apollo's sales. Plan price increases in select 2W SKUs. |
Sub-dealers earn approximately Rs 250-350 margin on Apollo 2W tyres, among the highest in the industry, helping boost Apollo's volumes. Sub-dealer Margins | Price | Nagpur, Maharashtra (West) | 2W | Apollo | Continue with the 2W Gold Scheme to gain market share. The current scooter product discount and trade discount are boosting distributors' profitability in-turn driving Apollo's sales. Plan price increases in select 2W SKUs. |
Apollo's distributors have the highest profitability at 7-9%, compared to TVS at 5-7% and CEAT at 4-5%. Distributor Profitability | Price | Nagpur, Maharashtra (West) | 2W, 3W | ApolloCEATTVS | Continue with the 2W Gold Scheme to gain market share. The current scooter product discount and trade discount are boosting distributors' profitability in-turn driving Apollo's sales. Plan price increases in select 2W SKUs. |
The top-selling tyre size up-country is 80/100-18, where Apollo has strengthened its portfolio with two new patterns, Actigrip R2 and Actigrip R4. Product Portfolio | Product | Nagpur, Maharashtra (West) | 2W | Apollo | Boost awareness of Apollo in up-country market, leveraging cricket partnership. Deploy POSMs & Branding of cricket partnership, new proudct launches (ongoing) |
A few sub-dealers noted that Apollo's Jersey Partnership (cricket sponsorship) is expected to boost brand awareness in rural areas. Brand Promotion | Promotion | Nagpur, Maharashtra (West) | 2W, 3W | Apollo | Boost awareness of Apollo in up-country market, leveraging cricket partnership. Deploy POSMs & Branding of cricket partnership, new proudct launches (ongoing) |
MRF and CEAT continue to have the highest brand awareness and preference in up-country markets. Brand Awareness | Positioning | Nagpur, Maharashtra (West) | 2W, 3W | CEATMRF | Boost awareness of Apollo in up-country market, leveraging cricket partnership. Deploy POSMs & Branding of cricket partnership, new proudct launches (ongoing) |
In up-country markets motorcycles outsell scooters 75:25, the opposite of Nagpur city where scooters hold over 75% share. Up-country Vehicle Mix | Other | Nagpur, Maharashtra (West) | 2W | Boost awareness of Apollo in up-country market, leveraging cricket partnership. Deploy POSMs & Branding of cricket partnership, new proudct launches (ongoing) | |
A few Apollo tyre sizes, such as 2.75-18, face bead adjustment and air leakage issues during 2nd and 3rd fitments. Product Issue | Product | Nagpur, Maharashtra (West) | 2W | Apollo | Continue to boost awareness for Actigrip R4 through WhatsApp Marketing to both sub-dealers and field sales Teams. POSMs being deployed. Product issue highlighted to R&D |
Apollo's 2W and 3W tyres continue to have the least complaints among competitor brands. Product Quality | Product | Nagpur, Maharashtra (West) | 2W, 3W | Apollo | Continue to boost awareness for Actigrip R4 through WhatsApp Marketing to both sub-dealers and field sales Teams. POSMs being deployed. Product issue highlighted to R&D |
Apollo's newly launched Actigrip R4 tyre is receiving positive feedback compared to MRF's Zapper C1. Product Feedback | Product | Nagpur, Maharashtra (West) | 2W | ApolloMRF | Continue to boost awareness for Actigrip R4 through WhatsApp Marketing to both sub-dealers and field sales Teams. POSMs being deployed. Product issue highlighted to R&D |
MRF launched a new 3-wheeler e-rickshaw tyre pattern, E-Savari M (4PLY), in the top-selling size 3.75-12 at Rs 70, priced cheaper than its existing E-Savari. Competitor Product Launch | Product | Nagpur, Maharashtra (West) | 3W | MRF | New 3W E-Rikhaw Product Development on-going as a part of the 3W product roadmap. |
CEAT's newly launched SecuraLyf tyre has received mixed feedback, with sub-dealers skeptical of its 2x mileage claim and mixed response to its aesthetics. Competitor Product Feedback | Product | Nagpur, Maharashtra (West) | 2W, 3W | CEAT | 2W R&D is evaluating the performance of CEAT's Securalyf. Apollo's high mileage Scooter Pattern already a part of the product roadmap. The learnings from CEAT to be built into the product development. |
Nagpur's 2W/3W tyre market is sized at 58,000 units (APM), with Apollo's APM-5300 holding a 9.1% market share. Market Size | Other | Nagpur, Maharashtra (West) | 2W, 3W | Apollo | – |
The market visit covered Nagpur city and up-country markets, including 2 ASDs, 10 sub-dealers, and 2 MBOs. Market Coverage | Other | Nagpur, Maharashtra (West) | 2W, 3W | Apollo | – |