Grouptyre portfolio of margin brands key to forward strategy
While UK wholesaler Grouptyre no longer has the exclusivity distribution rights for Maxxis, it does distribute a range of “margin brands”, including the exclusive brands Evergreen, Federal and Goodride. The joint statement released by Grouptyre and Maxxis to announce the mutual dissolution of their exclusive distribution agreement spoke clearly of the differing directions of the companies’ strategies, and the wholesaler’s managing director Karl Naylor has subsequently reaffirmed the “evolution” of its strategy: “Our strategy has evolved as we have seen a number of external factors influencing the tyre market in recent times.” Instead of one main brand in Maxxis, Grouptyre’s future strategy seems to place greater emphasis on a range of products.
“It is no longer in our customers’ interests for us to be over-dependent on one primary push brand, because issues like global exchange rate fluctuations, raw material and oil price increases and even instability in the container shipping industry all affect the consistency of the supply chain and the price level of a brand to the UK retailer. Being able to offer a number of equally strong brands mitigates the risks of instability and ensures we can always offer retailers a product to meet their and their customers’ needs.
“Thanks to the agreements we have in place, including exclusive distribution rights with a number of manufacturers, our customers always stand to benefit from the significant profit opportunities available through our margin brands.” Grouptyre’s portfolio includes high quality margin brands that it believes will satisfy tyre retailers’ needs in this critical and highly competitive sector of the market.
As market conditions have become more difficult in light of the economic downturn, retailers’ profitability has become increasingly dependent on access to appropriate “push” or “margin” brands. In order for the retailer to have confidence in recommending these brands to consumers, Grouptyre attaches the greatest significance to product quality, reliable supply, and stable pricing that allows the retailer to make attractive margins whilst selling at competitive prices.
It believes its exclusive brand portfolio, with the three aforementioned brands, offers retailers flexibility and choice. These brands, Grouptyre says, deliver in terms of consumers’ expectations for quality, reliability and performance at good value. Evergreen, Federal and Goodride also “deliver in terms of profit for the retailer”, the distributor says. All the brands in the Grouptyre portfolio are also supported by dealer programmes for merchandise, point of sale materials, signage, rewards and incentives; all factors that help retailers seeking to position tyres as their “house brands”.
In conjunction with its development of this portfolio of brands, Grouptyre also says it is working to improve its delivery service. During the past year it has reorganised its operations in the north east and the south east, including London and the Home Counties, of England (see related news). Meanwhile, investment in additional warehousing capacity in the south and along the east coast is enabling Grouptyre to improve the speed and reliability of its multiple daily delivery service and on-demand “rapid response facility”.
Grouptyre says the expansion of its warehousing capability is helping it “to win new business because retailers are confident of being able to obtain specific products as and when they need them”. These improvements feed into its strategy to offer customers products with enhanced margin opportunities; offering improved delivery on its push brands will allow retailers to hold less stock, Grouptyre says, positioning them to “maximise profitability, while continuing to provide a cost-effective service to the public”.
“The improvements we have made to our delivery service are really paying dividends, as more and more retailers are choosing Grouptyre as their preferred supply partner because they understand our approach to meeting their requirements and know they will receive high quality service and products at all times,” adds Naylor.
Related news:
- So long and thanks for all the tyre sales
- Maxxis and Grouptyre end exclusivity agreement
- TAFF Awards 2011 Preview – Tyre Wholesaler of the Year
- Grouptyre: New warehouses aid South East business growth
- Grouptyre membership “key” in B.A.B. Distribution expansion
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