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MRF COMPANY
1.1 Introduction:
MRF Ltd. is the first Indian company to export tyres to the US, the
very birthplace of tyre technology. It is the first company in India to manufacture and market
Nylon tyres passenger tyres commercially. In 2004, the company's turnover crossed INR 30 billion
mark. The company was given the title of most ethical company by 'Business World' magazine
after a survey conducted in 1999. The company, MRF Ltd., originally started as a small
manufacturing unit of balloons, latex cast squeaking toys and industrial gloves. The company
established its first office in 1949 at Chennai, Tamil Nadu and India. It began the manufacturing of
tyres in 1961. Today, MRF has 6 manufacturing plants in India located in Tiruvottiyur and
Arakonam in Tamil Nadu, Kottayam in Kerala, Ponda in Goa, Medak in Andhra Pradesh, and one in
the Union Territory of Pondicherry.
1.2 Company History:
Madras Rubber Factory was started by K. M. Mammon Papillae as a toy
balloon manufacturing unit in 1946 at Tiruvottiyur. In 1952, the company ventured into the
manufacture of treads rubber. Madras Rubber Factory Limited was incorporated as a private
company in November 1960 and ventured into manufacture of tyres in partnership with Mansfield
Tire & Rubber company based in Ohio, USA. The company went public on first April 1961 and an
office was established in Beirut, Lebanon to develop the export market in 1964 and its current
logo of the muscleman was born. In 1967, it became the first Indian company to export tyres to
USA.
In 1973, MRF started manufacturing Nylon tyres for the first time. The
Company entered into with a technical know-how collaboration with B.F. Goodrich in 1978. The
Mansfield Tire & Rubber Co sold out is share in 1979 and the name of the company was changed
to MRF Ltd in the year. The company finalized a technical collaboration agreement with Marangoni
TRS SPA, Italy for the manufacture of pre-cured tread rubber for retreading industry. MRF tyres
supplied tyres to Maruti 800, India's first modern small car. In 1989, the company collaborated
with Hasbro International USA, the world's largest toy maker and launched Funskool India. Also,
they entered into a pact with Vapocure of Australia to manufacture polyurethane paint
formulations and with Italian tyre manufacturer Pirelli for conveyor and elevator belt manufacture.
During the year 2004-2005, the product range of the company expanded with Go-kart & rally
tyres and tyres for two/three wheelers.
1.3 Key Facts:
MRF has been involved in the development of cricket through its sponsorship of many cricketers
In 1967 the Madras Rubber Factory Private Limited was converted into public company.
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Additional capital was issued in order to start the manufacture of automobile tyres tubes in
collaboration with the man fields Tires & Rubber co.,Manfeild,Ohio, U.S.A
The company as given permission to Export tyres having Mans field trade ark to all world
Market Expect U.S.A and Canada
2.1 Vision of MRF:
Advanced MRF strives to be influential in the evolution of the Recycling Industry
As well as use every opportunity to broaden and complement our comprehensive systems and
service portfolio offered to the automation industries.
The Vision of MRF is to emerge as pre-eminent global player in the field of polymer and make
INDIA a global super power in the terms of technology and life
2.2 Mission of MRF :
The mission of MRF that zero defect, zero breakdown, zero accidents, zero pollution and there by
zero loss with new performance standards
3.1 Products of the company
Tyres It manufactures various tyres for passenger cars, twowheelers, trucks, buses,
tractors, light commercial vehicles and offtheroad tyres.
Conveyor Belting It manufactures its Muscleflex brand of conveyor belting at one of the
most advanced stateoftheart facilities in India. Incorporating the latest manufacturing
techniques in processes beginning with mixing, calendaring and the like to manufacturing of the
finished products, all of which is inhouse, Muscleflex conveyor belting has gained rapid
acceptance in markets worldwide.
Pretreads It is the most advanced precured retreading system in India. MRF forayed into
retreading as far back as 1970. Today, MRF has perfected the art of recured retreading with its
extensive knowledge in tyres and rubber.
4 .Porter's generic strategies:
It describes how a company pursues competitive advantage across its
chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or
focus. A company chooses to pursue one of two types of competitive advantage, either via lower
costs than its competition or by differentiating itself along dimensions valued by customers to
command a higher price. A company also chooses one of two types of scope, either focus (offering
its products to selected segments of the market) or industry-wide, offering its product across
many market segments. The generic strategy reflects the choices made regarding both the type
of competitive advantage and the scope. The concept was described by Michael Porter in 1980.
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4.1Cost Leadership Strategy:
The first approach is achieving high asset utilization. In service
industries, this may mean for example a restaurant that turns tables around very quickly, or an
airline that turns around flights very fast. In manufacturing, it will involve production of high
volumes of output. These approaches mean fixed costs are spread over a larger number of units
of the product or service, resulting in a lower unit cost, i.e. the firm hopes to take advantage
of economies of scale and experience curve effects. For industrial firms, mass production becomes
both a strategy and an end in itself. Higher levels of output both require and result in high market
share, and create an entry barrier to potential competitors, who may be unable to achieve the
scale necessary to match the firms low costs and prices.
The second dimension is achieving low direct and indirect operating
costs. This is achieved by offering high volumes of standardized products, offering basic no-frills
products and limiting customization and personalization of service. Production costs are kept low
by using fewer components, using standard components, and limiting the number of models
produced to ensure larger production runs. Overheads are kept low by paying low wages, locating
premises in low rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy
requires a continuous search for cost reductions in all aspects of the business. This will include
outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing
other costs including distribution, R&D and advertising. The associated distribution strategy is to
obtain the most extensive distribution possible. Promotional strategy often involves trying to make
a virtue out of low cost product features.
The third dimension is control over the value chain encompassing all
functional groups (finance, supply/procurement, marketing, inventory, information technology etc
to ensure low [Link] supply/procurement chain this could be achieved by bulk buying to enjoy
quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts,
working with vendors to keep inventories low using methods such as Just-in-Time purchasing or
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Vendor-Managed Inventory. Wal-Mart is famous for squeezing its suppliers to ensure low prices for
its goods. Other procurement advantages could come from preferential access to raw materials,
or backward integration. Keep in mind that if you are in control of all functional groups this is
suitable for cost leadership; if you are only in control of one functional group this is differentiation.
For example Dell Computer initially achieved market share by keeping inventories low and only
building computers to order via applying Differentiation strategies in supply/procurement chain.
This will be clarified in other sections.
4.2 Differentiation Strategy:
A differentiation strategy is appropriate where the target customer
segment is not price-sensitive, the market is competitive or saturated, customers have very
specific needs which are possibly under-served, and the firm has unique resources and capabilities
which enable it to satisfy these needs in ways that are difficult to copy. These could include
patents or other Intellectual Property (IP), unique technical expertise (e.g. Apple's design skills or
Pixar's animation prowess), talented personnel (e.g. a sports team's star players or a brokerage
firm's star traders), or innovative processes. Successful differentiation is displayed when a
company accomplishes either a premium price for the product or service, increased revenue per
unit, or the consumers' loyalty to purchase the company's product or service (brand loyalty).
Differentiation drives profitability when the added price of the product outweighs the added
expense to acquire the product or service but is ineffective when its uniqueness is easily
replicated by its competitors.[6] Successful brand management also results in perceived
uniqueness even when the physical product is the same as competitors. This way, Chiquita was
able to brand bananas, Starbucks could brand coffee, and Nike could brand sneakers. Fashion
brands rely heavily on this form of image differentiation.
4.3 Focus strategies:
This dimension is not a separate strategy for big companies due to
small market conditions. Big companies which chose applying differentiation strategies may also
choose to apply in conjunction with focus strategies (either cost or differentiation). On the other
hand, this is definitely an appropriate strategy for small companies especially for those wanting to
avoid competition with big ones.
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In adopting a narrow focus, the company ideally focuses on a
few target markets (also called a segmentation strategy or niche strategy). These should be
distinct groups with specialised needs. The choice of offering low prices or differentiated
products/services should depend on the needs of the selected segment and the resources and
capabilities of the firm. It is hoped that by focusing your marketing efforts on one or two narrow
market segments and tailoring your marketing mix to these specialized markets, you can better
meet the needs of that target market. The firm typically looks to gain a competitive advantage
through product innovation and/or brand marketing rather than efficiency. A focused strategy
should target market segments that are less vulnerable to substitutes or where a competition is
weakest to earn above-average return on investment.
Example of firm using a focus strategy include Southwest Airlines, which provides short-haul
point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, United, and
American Airlines.
5. MRF capabilities:
5.1 Engineering and Research center:
MRF uses cutting - edge technologies in predictive testing and design
validation before it leaves the drawing board. These advances have significantly brought down the
time to market for new designs.
Advanced raw materials are tested and approved in our NABL accredited
laboratories. MRF works closely with global suppliers in using the latest developments in materials
across the globe. Our laboratories which have the very latest in testing equipment closely monitor
the quality of the material going into our tyres at the time of approval and regularly after that. The
tyres then go through testing for confirming the architecture and a series of indoor testing to
ensure that they meet MRF's tight standards and also those required by the OEM or by any of the
national standards like BIS/JIS/ETRTO/T&RA.
Tyres are now handed over to the Vehicle Dynamics Group, who now
validates the design on the vehicle. These tests are done at the test track in a series of
manoeuvres at various speeds, pushing the tyres to the limits of its capabilities.
MRF also tests tyres on fleets across the country to ensure that the tyres have endured
successfully all the types of roads on which our customers travel daily. Race Tracks and Indian
Roads are our laboratories.
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6. STP
6.1 Segment:
Automobile industry, manufacturing industry.
6.2 Target Group:
Heavy duty trucks/buses, small cars, luxury cars, SUVs and conveyor belts for
manufacturing facilities.
6.3 Positioning:
Indias first tyre making company with comprehensive tyre portfolio
7. SWOT Analysis:
7.1 Strength:
1. Company has remained in first position in tyre industry and was the first to reach annual
turnover of Rs.5000 Crore in India
2. They have 6 manufacturing facilities in India (all in south) in proximity of rubber belt of India,
with sales network divided in 4 zones; East(14), West (23), South(33) and North(27 dealers)- very
strong and developed distribution network.
3. Good export market with company exporting tyres and conveyor belts to 65 countries
4. Complete product portfolio with tyres for all types of vehicles-heavy duty vehicles, SUVs, small
& luxury cars, two & three wheelers, conveyor belts, paints & coats and pretreads.
5. It enjoys strong brand equity and loyalty of customers.
6. Company is willing to take innovative measures to suit different terrains of India.
7. Strong financial position
8. Diversified into Unspool, MRF Pace Foundation, MRF Racing
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9. Advertising as India eco-friendly car tyre making company
7.2 Weakness:
1. Volatility in industrial relations. Example: The labor unrest.
2. Intense competition due to presence of other global brands
7.3 Opportunity:
1. Emerging markets and growth of automobile industry
2. More tie-ups with Automobile companies as its mainly into B2B market.
3. Horizontal and concentric Diversification.
7.4 Threats:
1. Price wars
2. Stiff competition from national and international brands
3. Cheaper technologies
4. Volatility in prices and availability of raw material as Indias rubber production is less
its demand.
than
5. Government Policies export duties, import duties, tax levied on automobile industries and
economic condition of nation as it determines the sale of automobiles.
6. Introduction of other transport facilities like metro, monorails and local trains keeping
pollution hazards caused by combustion of automobile fuels.
7.5 Competitors:
5. Yokohama
8. PEST Analysis of MRF:
1. JK Tyres
[Link]
3. Dunlop
4. Goodyear
This analysis is used in every type of business organizations. Let us
consider on MRF company. There are 6 type of views considers in PESTLE analysis of this
organization, they are:
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8.1 Political Factors of MRF:
The company is politically strong for its high standards and quality
assurance in this industry. As the company was started in 1946 before the independence of the
country and it is first company which has got success in rubber industry. In 1956, MRF had
become leader of market with 50% share of the tread-rubber in India with its good quality and
high standards. Many multinational companies had to withdraw from tread-rubber business in
India because of an MRF's effective hold on the market. In 1990, the 6th World Cup Boxing
Championship was brought to Mumbai, India by MRF where 39 countries had participated. MRF
Pace Foundation was setup in the year 1988. Dennis Lille is the director for that academy. Many
pace bowlers trained at that foundation were selected to Indian cricket team.
The company has all legally approved certifications and it
maintains all the national standards. Company is successful in satisfying every one especially to
the customers and rules and regulations of Indian Government.
8.2 Economical Factors of MRF:
By unresolving tax issues, the import duty on natural rubber is more
as 20% and 10% as less as on finished tyres is unaddressed because of the issue of tax structure.
Due to the increasing cost of raw materials tyre manufacturing companies profit is changing. As
the materials based on natural rubber, crude and steel are historically volatility in prices.
Domestic natural rubber has increased to 40%. The fact is known that 80% production of price is
combines with the manufacturers. As there is a huge demand for tyres of T&B category MRF has
build up exporting business with neighboring countries like Sri Lanka and China. Globally this T&B
tyre segment has more demand for radial tyres. MRF is developing radialisation globally to protect
share in international market, and also make complemented grip in Indian market. MRF has set up
a factory at Pondicherry for radial tyres.
8.5 Social Factors of MRF:
Presently, small families are demanding for 2/4 wheelers for
individuals. The sales of tyres has gained more in past decade. From upper class families with
more than 1 car per family observed to be increasing demand of tyres exponentially, mainly in
cities where working couples find difficult to maintain them without more than 1 car. As we know
that Indian middle class families are known for its savings frenzy has now been slowly warming up
to an idea of EMI and buying on credit. Due to these factors, there is a enormous demand in
passenger cars. MRF had gained high profits in providing customer needs in passenger car
category.
8.3 Product and Services:
MRF is the leading manufacturing company of the tyres in various
segments. Including tyres, Pretreads, Paints, Coats and Toys are diversified business interests of
MRF. By innovation ofthe product and technology, each and every tyre that comes out is tested to
weather the toughest conditions and the highest standards that take on any road.
Customers are offered by a host of services of the MRF, they are helped
from selecting the tyre of their choice to maintaining their vehicle.
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9. Futures Projects:
Radicalization in the tyre industry has become the most important factor
in trucks and buses category. The future projects of MRF tyres are to produce radicalization in
India. Radicalizations can be explained as the most important innovation in the tyre technology. As
radicalization was introduced in India since 1978, MRF had not reached to catch its pace according
to its expectations in spite of several advantages like additional mileage, saving of fuel, improved
driving. In India older vehicles had not suitable geometric fitment of radial tyres on Indian roads.
But now the situation is completely different, for the passenger car type segment radicalizations
has reached to 98%. And for medium and heavy vehicles segment radicalizations is 8%, LCV
segment radicalization is estimated at 18%. The radicalization of trucks, buses and LCV tyres had
started obtaining the momentum. MRF have kept its pace with the improvements of technology
that radicalizations signifies the art of tyres compared to be the best in market.
A special factory was started in Pondicherry for manufacturing of
radials. MRF tyres were chosen to use on FIAT UNO, OPEL ASTRA and FORD ESCORT because of its
good quality in the market. MRF in India has collaborated with companies like Maruti, Mahindra &
Mahindra, Tata motors, and General motors.
Natural gas
Flow conditioner
Turbine meter
Flow meter
Gas quality
10. Characteristics of Marketing
B2B Marketing:
The marketing of goods and services between organizations is not the
same as consumer goods marketing because there are a number of fundamentally different
characteristics, diverse marketing strategies and operation need to be implemented to satisfy
the needs of business customers. There are certain characteristics which are explained below
such as:
Decision Making Unit:
The DMU consists of the individuals who actively participate in the
individuals who actively participate in the decision when it is in the negative and zero states" by
Hill and Hilliers (1977). An organization's decision making unit may have specific requirement
that influence their purchase decision in a particular market which can be policy factors,
purchasing strategies, and a level of importance attached to these types of purchases, attitude
towards vendors and towards risk. For e.g. In advertising auto manufacturing have recently
begun to target their advertising towards women and some have initiated special sales training
geared towards selling women. And e.g. Men for shaving cream and women are most often the
decision making unit.
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Derived Demand:
It is refers to the direct link between the demand for an industrial
product and the demand for consumer products: the Demand for industrial products is derived
from the ultimate demand for consumer product. For e.g. A material and components that are
used in a Harley- Davidson motorcycle where some of its components are manufactured by
Harley-Davidson but the finished products reflects the efforts of over 200 suppliers or business
marketers who deal directly with the
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firm. But the customer is stimulating the demand for a diverse array of products manufactured
by business marketing firms such as tires; coil springs etc while purchasing Harley- Davidson
(Hutt and Speh, 2004).
Relationship Marketing:
It is a key characteristic of B2B marketing concerns the significance of
relationships. Relationship marketing centers on all activities directed towards establishing,
developing and maintaining successful exchange with business customers and other constituents
(Morgan and Hunt, 1994). The development and maintenance of positive relationships between
buying and selling organizations is pivotal to success. Whereas collaboration and partnership over
the development, supply and support of products and services is considered a core element of
B2Bmarketing. And In B2C market the relationship between manufacturer and consumer or
reseller and consumer who are considered in the past as relatively weak as well as unimportant.
"A well-developed ability to create and sustain successful working relationship with customers
gives business marketing firms a significant competitive advantage."
Types of organizational Customers:
Characterizing organisation by size, to differentiate between the
very large and the very small. For e.g. According to Macfarlane (2002), there are number of
difference between global and national organisations, public sector, small and medium sized
enterprises (SMEs) and Small office/home office not least in the ways they specify product and
services. There are three different types of organisation which helps in understanding both the
benefits and marketing approach demanded which are explained below-
Commercial Organisation- it consist of different
commercial organisation such as distribution, original equipment manufacturer, users and
retailers which include wholesalers, distributors etc Government organisation- this type of
organisation are responsible for a huge volume and enormous value of business purchases
such as health, environmental protection, education, policing, transport, national defense
etc are some areas which attract funding and sellers.
Complex Networks Value Chain:
The Value chain of B2B has the potential of being very complex as
marketers seek to influence intricate channels of influence and demand. Value chain starts with
business and consumer demand from which drozen of business products or services are
generated. Products pass through all activities of the chain in a specified order at each activity
the product and service gains some value.
But the ultimate goal of the value chain is o maximize value creation while minimizing costs. A
Marekting opportunity exists through value chain. They are some shared characteristics with
B2C such as delivery value to meet customer needs. Whereas dealers , agents etc provide cost
efficient alternative to manufacturer and services channels through this complex value chain.
And these distributors' channels develop and evolve in ways that recognise these factors which
maximize value to both manufacturer and end users (Walford and Letwin, 2009).
Channel 1: It is a direct Channel i.e. Manufacturer to Original Equipment Maintenance to End
Users. Where For MRF is a Manufacturer, OEM can be Maruti, Mahindra and Mahindra, Tata
Motors, General Motors. Whereas the End users in this channel can be the Dealers, retailer and
even the commercial business person. For e.g. A Government business such as Army trucks or
vehicle where they will directly deal with the OEM and say them there requirement and then a
OEM will assemble the parts and get it from Manufacturer.
Channel 2: It is an indirect Channel, where a Wholesale of Tyre can deal with directly to
Manufacturer and can supply the tyre further to mechanic and then from mechanic to End users.
And Wholesale can take the tyres from OEM. End Users, can be School buses, taxis, Auto
rickshaw etc. which are used for Commercial bases.
Channel 3: This channel is related to a replacement sector, where if any Customer return a
product or needs a replacement where manufacturer would supply to Retail Distributor and from
there to a dealer such as tyre speciality stores, Car deals, service station, car repair work,
Automobile parts relation and others. And then to end Users
Channel 4: Under this channel where a Warehouse Agent can directly supply the tyre to dealer
and then from dealer to End users. Whereas Warehouse agent can be Carriage/forward agent,
etc. and End User can be a customer who uses the vehicle for commercial purposes.
Customer Value in Business market:
Customer value has been referred to as "the
cornerstone of business market management" (Anderson and Narus, 1999). In MRF tyre industry
being a very raw material intensive industry , the input cost mainly decided on the price of tyres.
In fact 90% of a tyre cost comprises of its raw material cost. Mark up pricing is the common
pricing method followed across the tyre industry. This involves a standard mark up to the tyre
production cost. There is a customer value in B2B market.
Acquisition cost
Add-On Benefits
Core Benefits
SOURCE: Ajay Menon, Christian Homburg, and Nikolas Beutin, 2005
In Core Benefits MRF meet their customer's
consideration set. It represents here specific level of product quality and performance, as well as
expected levels of pre-and post sales services. For Add-on Benefits MRF has a good relationship
with their buyers-distributors, giving them a good delivery at their place. Supplier flexibility, or the
willingness of business marketers to accommodate a customer's unique business needs, likewise
adds customer's value.
Sacrifice, in MRF when Business customers a
purchasing a product they always demanding for discounts in price, so that's affect the
companies margin. In diagram organisational customer consider three different types of cost in
a total cost-in-use calculation. Acquisition Cost, MRF giving a discount to their distributors and
free delivery serves which could count as an Acquisition cost. Possession Cost, which is like,
companies financing, storage, inspection, taxes, insurance, and other internal handling costs.
Usage Cost is for company is machine malignance, employee training, user labour, and field
repair, as well as product replacement and disposal costs.
The objective of the MRF manufacturer is to create
Brand awareness in mind of customers where he would demand it from the dealer and dealer from
the manufacturer. MRF has mastered the art of creating lasting impressions in the mind of the
consumer. It pioneered the practice of heavy advertising and promotion in the tyre industry. So
much so, that today, MRF commands top-of-mind recall and top brand recognition amongst all
tyre manufacturers in India. There is hardly any tyre customer who hasn't heard of the MRF brand.
MRF achieved this remarkable feat by adopting a multi-pronged marketing strategy that involved
endorsements by sports celebrities, promoting popular sports like cricket and car rally races, and
even introducing its own mascot: the MRF muscleman, that reflected the tough image it projected
for its tyres. Today, dealers look forward to stock MRF tyres because customers demand it.
To achieve the above objective, The MRF has made
strategies such as Pull, Push and profile strategies. MRF has mastered the art of Pull strategy. They
pay very little attention to channel power. They heavily advertising its products and capturing topof-mind recall and brand recognition amongst customers. This automatically results in demand for
its tyres from customers, which in turn incentivizes the dealer to stock MRF tyres. In that way, we
can say that MRF influences referent power over its dealers. Dealers like to be associated with
MRF because it is the most sought after brand by consumers.
While MRF has pulled out all stops in
advertising and promoting its products, it gives very little attention to incentivizing its channel
partners. This is clear from the very low margins it offers its dealers and the complete absence
of other dealer incentives. Yet, dealers look forward to stock MRF tyres because customers
demand it. But if we see the competitors of MRF such as Bridge stone who used the push
strategy. Bridgestone follows reward power with its dealers. The company offers additional
incentives such as discounts, free gifts, gold vouchers, holiday trips, etc and encourages them
to stock, promote and sell their tyres.
Relationship with Dealers:
MRF almost exclusively concentrates on brand
awareness exercises, such as advertisements and endorsements. It believes in making the
customer demand its products through brand-awareness and brand-recall. Therefore, compared to
other tyre manufacturers, MRF pays little attention to incentivizing the dealers. Yet, dealers are
motivated to stock MRF tyres simply because they have high brand-recall and so the customer
demand
Goods of Advertising:
MRF uses advertising as a primary medium to reach out
to its customers. The company heavily on print, TV and outdoor media to drive its brand into the
mind of Customer. MRF is credit with devising some of the most creative advertising ever made in
Indian Tyre Company. It allots huge budget outlay for advertising and other promotional activities.
And main share of sales comes from customer related to Light, heavy commercial vehicles which
is to be promote with tyre as an reliable, tough and high endurance. Whereas Passenger and two
wheeler segment, MRF promotes itself as high quality and high performance tyre manufacturer.
Spin doctors of Public Campaign: They have perfected the art of publicizing the its brand through
highly visible events and celebrity endorsements. Whereas they has consciously aligned itself
with a number of sporting events in India. Its most memorable association with sports and
celebrity endorsements was the MRF label that adorned Sachin Tendulkar's bat for many years. It
was its sponsorship of auto-racing projected its slogan, "Tyres with Muscle" and outlined the
quality of its tyres and allied products. And also uses other celebrity such as Steve Waugh and
Brain Lara.
11. High-Technology Natural Gas Flow Measurement Services:
The Metering Research Facility (MRF) is a world-class, high-accuracy, high-technology flow
measurement facility for meter development, meter calibration, and meter testing simulating
actual field operational conditions. The MRF facility provides the highest accuracy,
controllability, and range ability in the industry.
The MRF is owned and operated by Southwest Research Institute. As the only facility of its type
in North America, the MRF has two separate flow test systems for achieving the highest
accuracy, controllability, and range ability
High-Pressure Loop (HPL) for large diameter pipe (216 inches, 1501,100 psig) high
pressure/volume metering applications
Low-Pressure Loop (LPL) for smaller diameter pipe (110 inches, 30175 psig) lower
pressure/volume metering applications
The HPL and LPL are closed-loop recirculation flow loops. Processed natural gas is used for the
majority of tests. Other fluids, such as nitrogen and carbon dioxide, are also available. Both
systems are located at the same site and operated from a single control center. Flow meter
calibrations performed at the MRF are traceable to the U.S. National Institute of Standards and
Technology (NIST).
11.1 Metering Research Facility Services:
Flow meter design and development
Flow meter testing and calibration traceable to NIST
Calibration accuracy within 0.200.25% (total uncertainty)
Flow meter station design, consultation, layout, and optimization
Uncertainty analysis and statistical modeling
On-site expert assistance with meter diagnostics, evaluation, and troubleshooting
Gas sampling expertise
Gas properties and thermodynamics expertise
Company specific flow measurement research
Industry consortium funded research
Pipeline Research Council International (PRCI) funded research
Industry staff training
11.2 Working with the MRF
The Metering Research Facility works with:
Flow meter and valve manufacturers
Flow computer manufacturers
Natural gas production and gathering companies
Natural gas transmission pipeline companies
Local natural gas distribution companies
Electric power industry (flow meter manufacturers and power plant operators)
Aerospace companies
Gas industry consortia
11.3 Related Terminology
Flow meter calibrations
Gas meter
Gas sampling
Orifice meter
Ultrasonic meter
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