Académique Documents
Professionnel Documents
Culture Documents
1.1 INTRODUCTION
may signify firms that buy or resell products at retail or wholesale basis. A producer cannot
sell all his products directly to consumer; he has to depend upon intermediaries to push, off,
his products. A dealer is an intermediary who helps to market a product. A dealer is one
who purchase and sells products. A dealer may be a wholesaler or a retailer or a distributor or
any agents.
The volume of sales depends on the efficiency of a dealer who assesses the
psychology of consumers and takes appropriate steps to sell a product. It is the dealer who
suggests to the manufacturers the suitable media of advertisement and other promotional
tools. Dealers are searching for new marketing strategies to attract and hold customers.
Dealers include all activities involved in selling goods and services to those buying for resale
or business use. Dealers buy mostly producers and sell mostly to retailers or industrial
consumers.
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➢ The researcher aims at finding ways of improving the market share of MRF tyre.
➢ In this case the actual users of tyre are very much aware of MRF and other brands of
➢ Therefore the firm which wants to improve its market share should study the dealer’s
satisfaction.
3
These factors are given more importance while analyzing the market. Since
the future phase was to be adopted after finding out the important factors relating to this
Primary objectives
➢ The main objective of the study is dealers satisfaction with special reference to MRF
Secondary objective
➢ To assess the effectiveness of promotional tools to improve the sales as opined by the
dealers.
➢ To analyze the factors that affects the dealer’s preference in dealing with tyre.
➢ To study the satisfaction of dealers towards dealer service, availability etc from the
dealer.
➢ The study was carried out in Kottayam and Pathanamthitta Districts only,
➢ This research was conducted among dealers only for obtaining consumer
➢ The results of the study can be applied only to MRF tyre and not for other
INDUSTRY PROFILE
RUBBER
Rubber is organic substances obtained from natural resources or synthesized
artificially which has the desirable properties of extensive stretch ability and toughness. The
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rubber goods unit consumes three types of rubber, natural rubber, synthetic rubber and
retained rubber.
RUBBER INDUSTRY
The rubber industry in India positioned at the top level in the world but its share of the
world trade is less than half percent. This industry in India is sharply divided into large scale
auto type sectors and non tyre sectors, which is mainly nominated by small scale tiny sectors.
The Indian rubber goods industry is now more than eighty two years old, the first factory in
this field having been set up in 1920 at Calcutta. The rubber goods industry plays a very
important role in the road transport sectors.
TYRE
Tyre is covering for the outer rim of a wheel which absorbs variation in the road
service so providing an easier ride to the vehicle. The tyre is composed of the thread which
comes into contact with road surface.
TYRE INDUSTRY
The Indian tyre industry struck route in 1950’s with a few MNC’s setting up shops in
the country. That was a period of controls in all industrial activities. It was also a low volume
demand period. The 1970’s and 1980’s witnessed entry of Indian tyre companies. Mid 1980’s
witnessed rush of small tyre companies coming up followed by independent to manufacturing
units.
JK Tyre & Industries Ltd. 2795.07 75.00 1.83 16.30 307.95 101/26
COMPANY PROFILE
Registered Office 124, Greams Road, Chennai - 600006, TN
Website: www.mrftyres.com
Management Details Chairperson and MD : KM Mammen
Managing Director : A Mammen
Directors : KM Philip, KC Mammen, A Jacob,
S Nandagopal, V Sridhar, VR Kirloskar,
N Kumar, RI Jesudasen
Business Operation Tyres, Rubber Products
Background MRF Ltd (MRF) was founded by K M Mammen Mappillai in
1946, as a small manufacturer of toy balloons, which gradually
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PRODUCT
Product Name Year Month Sales UOM Sales Product
Quantity Value(Rs. Mix
Crores) (%)
Automobile Tyres 2008 12 25192785 Numbers 4,849.26 84.77
Automobile Tubes 2008 12 25169251 Numbers 541.01 9.45
Others 2008 12 0 128.54 2.24
Rubber Tread 2008 12 6704 Metric 83.95 1.46
(Precured) Tonnes
Special Surface Coating 2008 12 3817 Kilolitres 50.25 0.87
Conveyor Belts 2008 12 2443 Metric 38.41 0.67
Tonnes
Rubber Tread 2008 12 1293 Metric 14.53 0.25
Tonnes
Others (Traded) 2008 12 0 5.30 0.09
Other Fiscal Benefits 2008 12 0 4.57 0.07
Rubber 2008 12 0 4.27 0.07
ORGANIZATIONAL GOAL
The main objective of the company is to “attain global standards to continuous
improvement in the quality of product and services and also to maintain market leadership”
The main strategy of the company in today competitive world is to “cut cost and win
the battle”
1991
The Company promoted a new Company viz. MRF International, Ltd., in view of the
tremendous growth potential in the export market.
1992
The Company has formed a new Company, viz., MRF INTERNATIONAL LIMITED and
the Company has received the certificate of commencement of business.
1993
K. M. Mammen Mappillai was awarded the Padmashri Award of National Recognition for
his contribution to industry - the only industrialist from South India to be accorded this
honour. MRF also became the first tyre company in India to cross the INR 10 billion mark.
Corporate Groups in India and a Leader in Asia, and by readers of the A & M magazine, as
one of India's most admired Marketing Companies.
1995
The Company has received the Top Export Award for the year from All India Rubber
Industries Association.
1996
The Company has received an award from CAPEXIL - Certificate of Merit based on the
export performance for the year. The Far Eastern Economic Review Award was presented to
MRF for the fourth year in succession in recognition of excellence.
1997
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MRF is setting up a new plant in Pondicherry for the production of radial tyres. The company
set up the Arakonam plant in Chennai to produce bicycle tyres and tubes. MRF has launched
Nylogrip Zapper, a high performance tyre for new generation bikes.
1998
MRF Tyres has signed an OEM (original equipment manufacturer) alliance with Siel Honda
Motors and Hindustan Motors. MRF has launched a market sampling operation for the MRF
Zigma.
1999
MRF Ltd has decided to set up more such clinics in Northern and Western cities. AIRIA
Highest Export Award was given in recognition of our outstanding export performance in
respect of Auto Tyres & Tubes during the year.
2000
The Company has set up shop in Dubai to target markets in the UAE as part of its export
thrust. MRF has launched a steel-belted premium radial tyre variant called `MRF ZVTS'.
2002
MRF was ranked highest in customer satisfaction along with multinational Bridgestone in a
study conducted by JD Power Asia pacific.
2003
MRF and Bridgestone are ranked highest in a tie for the second year in a row in
2004
MRF received the highest rankings in the study in four of the five factors determining overall
satisfaction with tyres appearance, durability, traction and handling. MRF Tyres is the biggest
consumer of natural rubber in India during 2002-03 Ties up with Maruti Udyog to boost
motorsports in India
2007
MRF Ltd launches premium truck tyre Super Lug 50-FS.
2009
MRF Ltd has informed BSE that the Board of Directors of the Company at its meeting held
on January 23, 2009, inter alia, has transacted the following:
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1. Appointed Mr. Sanjay Sharad Vaidya as a Director of the Company to fill the casual
vacancy caused due to the demise of the Director Mr. S Nandagopal, and
2. Appointed Dr. Salim Joseph Thomas as an Additional Director of the Company with effect
from January 23, 2009.
MAJOR BRANDS
MRF brand are marked leaders in almost every segment
ACHIEVMENTS
MRF is the first in India to produce tyres of formula cars.
MRF has got various award of all India Rubber Industries Associated.
Special export award 1990 – 91
Top export award from 1991 – 98
Highest export award 1998 – 99 and 2000-01
MRF has also got number of award from Chemical and Allied Product Exports Promotion
Council.
Certificate of merit 1987 – 88
Special Export Award 1988 – 89
Top Export Award 1989 – 90
Highest Export Award 1991 – 92
Top Export Award 1992 – 93
Special Export Award 1993 – 94
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BRAND AMBASSADOR
The brand ambassador for MRF tyre is our batting hero Mr. Sachin Tendulkar. The
MRF logo is imprinted on the bat Sachin. The image of Sachin has done a lot to enhance the
brand image of MRF. Sachin has also done promotion shows at various automobile shows for
MRF around the country. Another sports personality with whom MRF has signed contracts is
Steve Waugh and Brain Lara.
POLICIES OF MRF
QUALITY POLICY OF MRF
The quality policy of MRF is “to maintain market leadership through continuous quality
performance.” To achieve the goal all MRF plant and corporate office should adopt.
➢ Process/product improvement by performance monitoring and prompt services to
customers.
➢ Up gradation of all machinery to meet increasing need of the customers.
➢ Continuous training to all the employees in order to acquire the necessary skills and
knowledge.
Managing
director
ORGANIZATION STRUCTURE
MRF Kottayam Unit Organization Structure
General Manager
Kottayam Unit
PM - Production Manager
PEM - Plant Engineering Manager
PAM - Plant Accounts Manager
PHRM - Plant HR Manager
MPT - Manager Plant Technical
MPQA - Manager Plant QA
SO - Safety Officer
MRF KOTTAYAM UNIT
It was in 1969, a machine in the path of MRF happened, setting up of the
Kottayam unit in Vadavathoor village about 7 Km far from Kottayam town in the state of
Kerala. Even though its beginning was simple, right from the beginning, its growth in the
uptrend. The main reason behind this start up was to take advantage of law electricity cost,
tax concession on natural rubber at not extra transportation cost and availability of skilled and
educated labour in Kerala. About 10 acres was purchased in Vadavathoor village during
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October 1968 and the foundation stone was laid by late Mr. K. M Cheriyan. He was MRF
Chairman at that time.
A factory building with an area of 34200 Sq.feet has constructed during the
period of 68-69 and a boundary of 3a size with a capacity to mix 10 MT per day was created
and commissioned in July 1969 with strength of seven workmen. But presently it was a most
advanced technology mixing unit and a full fledged manufacturing unit producing truck and
tractor tyres.
The commissioning of tyre plant in 1994 was the beginning of new era in
history of Kottayam unit. This marked the starting point of a massive expansion drive at
Kottayam. Initially tractor front tyres were produced and then its diversified into passenger
tyres, tractor rear and truck tyres of various sizes. Cement house was also built to prepare
various cements and paints required at tyre plant and also for the production of vulcanizing
solutions. With the commissioning of tyre plant, PCTR production was also increased with
more PCTR curing presses being commissioned. Flap production was started in tyre plant
initially with 2 presses and later increased to 6 presses.
Kottayam plants supplies mixed rubber to other plants of MRF and hence with
the increase in demand, it becomes essential to augment the mixing capacity of the plant. A
new plant exclusively for mixing was built with huge internal mixers which have automatic
carbon and oil charging facilities. It houses two banbury of P270 tyre banbury of F620 tyre.
With a mixing capacity of 600 tones per day, this one of the largest mixing unit of the Asia.
A new plant mainly for PCTR production was commissioned in the year 2000.
This plant now houses a 6” cold feed extruder for extruding retreading materials and PCTR
Slugs, PCTR curing presses, 48” calendar for production of tyre repair materials, 68” fabric
calendar, and German tuber for flap slug extrusion, Flap curing presses, tyre finishing and
repair, tyre clinic, textile lab, finished good storage and shipping. With the growth in the
number of tyre presses and subsequent increase in the requirement of bladders. Kottayam unit
started producing bladders for its use and also for supplying to other unit. The bladder press
is located in tube plant. As a new product, solid tyre production was introduced at Kottayam
in 2004. The solid tyre curing presses are located in tube plant.
The Kottayam plant work at 24 Hrs, where a day consists of three shifts of 8 Hrs each.
1st shift - 7am to 3pm
2nd shift - 3pm to 11pm
3rd shift - 11pm to 7am
General shift - 8am to 4.30pm
Dealer wants high marginal gain from manufacturers. The main objective of
dealership is earning profits. Dealership business is different from other business. The
peculiar feature of a dealer is dealing with one or more similar products. Dealers earn
commission for goods sold from the manufacturers. The commission depends upon the value
of sales both cash and credit. Now a days the demand for tyre increases every year.
The manufacturers are not able to cover all the consumers directly. With the
help of dealers only they can reach the consumers. Dealer accepts income from business
because there is some guarantee of getting more commission from this business. Dealers
demand more commission from the manufactures; they cover the entire market within their
locality. They also sell tyre in credit to regular customer.
When there is a delay a small delay of one or two days or even hours may cause a great set
back in consumer satisfaction.
There are various ways we can satisfy the consumers. One among them is a
regular supply and prompts delivery of goods to customers. Even though quality is excellent
and the price is reasonable we cannot satisfy the consumers, unless there is prompt delivery
of goods.
General Electric Before the late 1990s,GE operated a traditional system of trying to load its
dealers with GE applications. Then dealers access GE’s order- processing system 24 hours a
day, they get GE’s best price, GE financing , and no interest charge for first 90 days. In
exchange, dealers must commit to selling 9 major GE product categories, generating 65
percent of their sales in GE products. Now GE provides internet content for each of its 1,500
online dealers.
Dealers-distributors have faced mounting pressures in recent years from new source of
competition. So when that the company provide their service at the satisfaction level of
dealers. They are processing successful in the market.
2.1.7 Geoff cousins managing director of Jaguar cars says “dealers satisfaction is
generate the sales growth and profitability” In schwacke’s 2007 brand monitoring survey, the
jaguar brand in Germany achieved first place for overall dealer satisfaction and improved
from last year’s result by nine places.
More than 1,000 dealers were questioned regarding their satisfaction with their brand and
Jaguar came first not only in the overall ranking but also in the important category which
showed an improvement of eight places.
Managing Director of Jaguar cars, commented: “I am delighted that both dealerships have
been recognized for the great work that they do. Its an out standing achievement to be chosen
over the tough competition from our main competitors. The level of satisfaction is measured
in six key areas: service initiation, service advisor, in-dealership experience, service delivery,
service quality and user-friendly service.
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2.1.8. HONDA motorcycle & scooters(HMIS) and Honda siel cars (HSCI) rank highest in
dealer satisfaction with their principals in the two-four wheeler industry segments,
respectively, according to the findings of the ‘2005 dealer satisfaction study’. The study
represents the responses of more than 1,200 two-and four-wheeler dealers to the key areas of
product, management relationship, profit margin, order and delivery, after-sales and parts
support, warranty. Ranking for the study are done at the industry segments-level to provide
comparisons among similar group of dealers.
“The industry average score of reflects a relatively low level of dealer commitment and
indicates that dealers are vulnerable to defection. Its an significant increase compared to the
2002 study” The key building partners is to focus on the most critical areas that impact dealer
satisfaction and commitment to the manufacturer.
Mr. Lochan the managing director said “It is not surprising that dealers expect their principals
to be concerned and supportive of their profitability. However, the study clearly reveals that
dealers are equally concerned about other tactical issues such as branding, advertising
effectiveness and support in managing warranty claims”
The statement said the dealer satisfaction study conducted from October through December
2005 covering 846 two-wheeler dealers across nine manufacturers and 392 four wheeler
dealers across eleven manufactures.
2.1.9 HENRY FORD, 1926 ‘business must be run at a profit, else it will die. But when
anyone attempts to run a business solely for profits and thinks not at all of the service to the
community, then also the business must die, for it no longer has a reason for existence.
Dealers are an important part of our product- led strategy. Our new product introductions will
be of mutual benefit to ford and its dealers will help strengthen our relationship.
Ford measure dealer satisfaction with all our brands and regions through various methods.
Day-to day interactions with our dealer councils and input from third- party surveys. Dealer’s
attitude survey results for 2006 reflect an improving trend for over all dealer satisfaction
Ford annually recognizes outstanding dealer contributions to the community through its
“salute to dealers” program. The program was established in 2001 to demonstrate our
commitment to dealers who provide outstanding products and service and improve the lives
of those in need. It represents more then 6,000 dealership in ford motor company.
Thousands of dollars saved by reassigning call center employer to higher value work.
Accelerating inventory improves bottom lines receiving order faster improves cash flow for
new Holland. Tim Lyon, operating director, New Holland “we have provided a modern web
based order system that makes life easier for our dealers”. We focus mainly on dealer
satisfaction because they are most valuable assets of our concern.
2.2.7.1 PERCENTAGE
Percentage refers to special kind of ratio percentage are used in marketing
comparison between two more series of data. Percentages are used to describe relationship.
Since the percentage reduce everything to a common base & these by allow meaningful
comparison to be made.
discrepancy between theory of observation may be attitude to chance (or) whether it results in
adequacy of the theory to fix observed fact.
χ 2
= Σ (O-E) 2/E
Where,
O – Observed frequency
E – Expected frequency
Formula
Average weight = Total weight x 100
Total No. of respondents
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dealers’ satisfaction. The percentage analysis gives the percentage of their experience in their
1. 1 – 3 years 2 5
2. 4 – 7 years 6 15
3. 8 – 10 years 12 30
4. Above 10 years 20 50
Total 40 100
INTERPRETATION
Of about 40 dealers 50% of are having above ten years experience and 30%
are in the business of about 8-10 years. The other 15% have 4-7 years of experience and the
1. 1 – 3 years 2 5
2. 4 – 7 years 6 15
3. 8 – 10 years 14 35
4. Above 10 years 18 50
Total 40 100
INTERPRETATION
This table shows the experience of the dealers in dealing the MRF tyre
products. Most of the dealers, who have experience in their dealership, have the experience in
dealing MRF. 50% of the dealers have MRF dealership for above ten years. 8-10 years
experienced dealers are up to 35% and 15% have 4-7 years experienced and the rest 5% have
up to 3 years experience.
Since the two charts above shows the dealers have considerable experience
their answers are valued much and their statements are very much helpful for the analysis to
come effective.
CHART 2.3.2 EXPERIENCE with MRF DEALERSHIP
2. Good 14 35
3. Satisfactory 7 17.5
4. Poor 0 0
Total 40 100
INTERPRETATION
26
The chart above shows the degree of reliability on the quality of MRF tyre
products the customers and dealers have. From this question and analysis we could find the
Most of the dealers said the quality of MRF is unbeatable. More that 45%
dealers praise it, 35% of the dealers say the quality is good and the rest are satisfied from the
This chart depicts the quality of MRF by their dealers. No one reported on
1. Very Good 12 30
2. Good 17 42.5
3. Satisfactory 8 20
4. Poor 3 7.5
Total 40 100
INTERPRETATION
This table shows the degree of dealers’ satisfaction on the credit period
allowed by MRF to them. Most of the dealers are satisfied with the credit period allowed.
30% of the dealers are very much satisfied about the credit period. 42.5% of
the dealers are voted Good and 20% of the dealers find no faults and almost satisfied with the
Only a 7.5% of the dealer’s report that the credit period allowed is not matching them.
2. Good 19 47.5
3. Satisfactory 12 30
4. Poor 4 10
Total 40 100
INTERPRETATION
The promotion activities carried out by MRF is found to be good. More than
45% of the dealers report Good and 12.5% of the dealers found is extremely well. 30% of the
dealers are satisfied and the rest 10% of the dealers are reporting poor. The promotion
1. Very High 8 20
2. High 19 47.5
3. Average 12 30
4. Low 1 2.5
Total 40 100
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INTERPRETATION
This table shows the idea of the dealers and customers about the price of the
MRF products. On any time, the price of a company’s product is always discussed; even it is
maintained at the low cost. But when asked with a lot of customers the real fact can be got.
Among the 40 dealers, 20% of them reported that the product is higher at cost,
The 30% of the dealers are satisfied with the price, because of the product’s
quality and one dealer reported that the price is lower and no problem to deal with that.
1. Discount 18 45
2. Gift 6 15
3. Prize 4 10
4. Offers 8 20
Total 40 100
INTERPRETATION
Some dealers have the suggestions, and the suggestions about the promotional
activities were, shown in the table. It becomes essential for the manufacturing organization to
satisfy its dealers by the way to sustain and compete.
Most of the dealers prefer for the discount to offer them. MRF already offering
discounts and they are satisfied with it. Hence the 45 % of the dealers find no problem with
the promotional activity and they are got what they expect.
20% of the dealers expect offers when they purchase in bulk. 15% expect for
the gift items and 10% expect prizes to be offered. They need the bulk purchaser should be
praised. But this activity doesn’t have a high impact because all the dealers are expecting the
discount as the main and besides that they have those other ideas.
1. Promotional Activities 4 10
2. Quality 27 67.5
3. Company Policy 4 10
4. Margin 5 12.5
Total 40 100
INTERPRETATION
On talking about the main factors enabling the dealers to be the MRF dealers,
About 67.5% of the dealers are dealing roots products for its quality and 10%
are for promotional schemes and company policies. The rest 12.5 % of the dealers are voted
for margin. Though the dealers prefer other than quality, they have quality as a main factor.
1. Yes 13 32.5
2. No 27 67.5
Total 40 100
INTERPRETATION
30
Most of the dealers also deal with other companies. This is because it is very
essential for them to deal with the customers. They are in need to satisfy their various kinds
About 67.5% of the dealers are dealing with other companies and 32.7% deal
only MRF.
1. Yes 11 27.5
2. No 27 67.5
Total 40 100
INTERPRETATION
From the above table and chart, it infers that good majority of 67.5% of the
dealers are satisfied in not complained MRF tyre, while dissatisfaction prevails with the
remaining 27.5%.
INTERPRETATION
About 35% of the dealers have suggestions to improve MRF products and
their schemes. Their suggestions are wider about promotional activities, margin, profitability,
The rest 65% of the dealers are satisfied with what they are offering in MRF.
INTERPRETATION
Most of the dealers do not recommend their customers about the MRF
X Y
2 2
6 6
12 14
20 18
40 40
TABLE 2.3.14
CALCULATION OF CORRELATION
∑dxdy-(∑dx)(∑dy)
r= n
∑dx2-∑dx2 ∑dy2-∑dy2
n n
2 2 -8 -8 64 64 64
33
6 6 -4 -4 16 16 16
12 14 2 4 4 16 8
20 18 10 8 100 64 80
Correlation =0.979
INTERPRETATION
TABLE: 2.3. 15
Quality 19 14 7 0 40
Promotion Activities 5 19 12 4 40
Credit Period 12 17 8 3 40
Weighted Average = ∑ WX / ∑ X
Where
W = Weight
X = Percentage of respondents
WEIGHT 4 3 2 1 WEIGHTED
TOTAL RANK
No VG G S P AVERAGE
1 76 42 14 0 132 13.2 1
2 20 57 24 4 105 10.5 3
3 48 51 16 3 118 11.8 2
VG : Very good, G : Good, S : Satisfactory, P : Poor
INTERPRETATION
34
From the above calculation we can conclude that Quality is ranked first, Credit
Period is second, and Promotion Activities in last.
3.1FINDINGS
➢ On observation it is found that the dealers report Poor are found to be dealing with MRF tyre
indirectly. And hence, they have the limited duration, but even they didn’t find any difficulty.
➢ It is found that the price is somewhat higher for the MRF products but when considering
about the quality, the price can be paid. Most of the dealers are satisfied with the price,
because of the product’s quality and one dealer reported that the price is lower and no
➢ The friendly relation helps much better for an organization to flourish. Here, in the case of
MRF, the replies came, depicts that they have understood this concept very well.
➢ On observation, the dealers having problem with the after sales service is unavoidable. They
say that it takes time for the product to get repaired and no problem with the replacement;
➢ Most of the dealers also deal with other companies. This is because it is very essential for
➢ From the observation, it is found that the complaints are about the profitability and price of
MRF products.
➢ There is a significant relation between the dealers’ experience and their Satisfaction
Level on the Credit Period allowed and most of the well experienced dealers are
➢ There is a significant relation between the dealers’ experience and their Satisfaction
Level on the Promotional Activities, and most of the well experienced dealers are
➢ The using weighted average Quality is ranked first, Credit Period is second, and
3.2 SUGGESTIONS
In our market analysis I found many block hole in marketing strategy and
MRF product Existing product want some improvement according change of technology ,
competition and spread of market.
3.3 CONCLUSION
Competing is the global brand and it is difficult one. From the survival point of view,
MRF should enter into all aspects of marketing activities to improve the product life in the future
market. The company has mostly achieved in satisfying its dealers and as well as its customers. It is
evident from this study and MRF is advised to maintain its Quality on its products so as to retain this
stage forever. The study has been successful in knowing the Dealers’ Satisfaction with MRF Limited,
Kottayam.