Michelin in the land of the maharajahs

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Case Study 2
Michelin in the land of the Maharajahs
Question 1- Segmentation
Technologies :
Radial / tubeless
Cross-ply or diagonal
We are including the Tubeless in theRadial technology because it is just an amelioration of it.
Clients:
OEM
Replacement
We do not include export because we are studying only the Indian market and export includesother markets.
Products:
Commercial vehicle tyre
LCV/ car tyre
2/3 vehicles
We delete the Off-the-Road vehicle in the product segment because this is not enough importantin the industry.
According to table 1 in the case, 85% of the radial tyre in India is sold for cars and 11% for LCV; so segment 4 is a very relevant one. On another hand, we do not have a segmentcombining two and three wheels tyres ad radial because according to the same table, none of the radial tyres are used by two and three wheels vehicles.
Question 2- KSF
Segment 1
Longlasting/ Re-treated
Resistant/ Solidity
Price
Segment 2
Long lasting/ Re-treated
Resistant/ Solidity
Specific expectations (trucks)
Segment 3
PriceAvailability
Segment 4
Road-holding
Quality
No possible flat tyre
Brand image/value
Impact on fuel consumption
Segment 5
Road-holdingQuality
No possible flat tyre
Question 3- Competitive Matrix System
Nb of KSF
Large
Few/price
Segment 3:
The main success factor is price (another isavailability at a lower degree) and this segment has a solid competitive position: for instance there are three companies which have strong market shares in the two and three wheels sector; MRF (42,5%), TVS(21%), Falcon Tyres (19,5%). That’s why we chose to place the segment 3 in the middle of the volume system.
Segment 5:
We chose to place the segment 5 in the specialized system because this is a...
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