The bigger the tyre brand, the more important marketing becomes in order to communicate its values and its worth. With this in mind, the “marketing” tag collates all the latest marketing-related news and analysis into a single place. This reverse-chronological list of thousands of articles is your go-to source of tyre industry, marketing-related news and information.
The Goodyear Tire & Rubber Company has elected Cathryn M. Fischer, vice president and chief marketing officer. Fischer, 39, will be responsible for the world’s largest tiremaker’s global marketing and brand management efforts. She will report to Robert J. Keegan, president and chief operating officer.
Jean Pierre Dolait has been appointed as Vice President Sales and Marketing, Aftermarket Tenneco Automotive ( Monroe brand suspension products and Walker exhaust systems). Previously at Valeo, Dolait reports to Tenneco’s General Manager, Aftermarket, Don Miller.
A year ago, the conference of the European Tyre Recycling Association (ETRA) was held in Schwerin, dealing with the present situation and future perspectives of scrap tyre disposal in Germany. Many questions and problems that were left unanswered in 1999 were also discussed at the following conference in Leipzig, which took place at the beginning of last December. Also this time there were few new answers to be found concerning the well-known problems in this area. Why is it so difficult to solve these problems connected with the recycling business? Some answers: the participants in this market are very diverse – and so are the individual aims. In addition, the market situation for recycled scrap tyres is still not the best, and new ideas for sensible and economical applications are few and far between at the moment. Even if they exist, they may still be blocked in many cases, e.g. the use of rubber in road surfaces. On the other hand there is a requirement for European quality standards for products which are already distributed. Furthermore, the knowledge of some companies in this sector is quite limited: it is either the tyre-, disposal- or the marketing-know how that is missing. In many cases the financial backing for new projects is insufficient. Not to mention a number of scandals concerning illegal landfills, which has negatively influenced public opinion about this business sector. Finally the serious market participants, as well as their association ETRA, have run up against a wall of disinterest on the part of the state and the tyre manufacturers.
Goodyear Tire & Rubber has appointed Kevin Kramer to the post of director of marketing, consumer tyres for North American Tire. Kramer has been with Goodyear for 18 years and has held numerous marketing appointments in the USA and Singapore. He is replaced in his former post of general business manager for the Southern Region by Steve McClellan, recently general manager of Allied Tires, a Goodyear-owned subsidiary.
In the USA, Goodyear has announced that three new dedicated Dunlop tyre lines will be available from Goodyear and Gemini outlets. These are the Dunlop Citation, the Citation HP (both for passenger cars) and Dunlop Pioneer for 4×4 vehicles.
Jim O’Donnell (50) has been appointed Managing Director of BMW (GB), effective June 1. He succeeds Kevin Gaskell, who left the company in February. O’Donnell’s former roles include Sales & Marketing Director for BMW South Africa and, most recently, Sales Director of BMW (GB).
Hayes Lemmerz has combined its sales and marketing forces of fabricated and cast wheels in North America. President of the new unit is Ronald Kolakowski, Richard Miller has been appointed vice president and four sales directors are responsible for NA oe customers.
The slogan was “Service Makes The Difference”. Consultants MMS GmbH, together with the German dealer association BRV (which claims to be the “centre of competence”), organised this interesting seminar. Regrettably, representatives from only about 30 independent tyre dealers attended, with the majority of the 150 delegates coming from the tyre industry and their equities. Hubert Hannezo, Michelin’s Worldwide Marketing Manager for passenger car and light truck tyres, made a very informative speech and explained to the audience what is going on, for example, in the USA and what might become popular here very soon, and why. A totally new form of service is developing through the internet, and specialists from Continental enlarged on this in detail. Larry C. Morgan, a big tyre dealer from the USA, explained his growth philosophy. He is confident that his group will sell around ten million tyres a year from 2005 on. One of his statements was “Bigger is better, only if big is better” and “If it is to be, it is up to me”. Finally, keynote speaker Sir Tom Farmer used the opportunity to explain again what Kwik-Fit is, how it has grown, and for what it stands. One criticism of the seminar might be that there was no opportunity to ask questions, nor to initiate any discussion.
The tyre trade as we know it is fighting a defensive battle, finding it harder and harder to maintain its 60 p.c. market share of sales to the user. Not only car franchise firms with their recently acquired considerable strength give the tyre trade a hard time in competition, but new forms of distribution, which may be grouped together under the loose label “Fast Fit”, are on the advance. Many Volkswagen, Fiat, Ford (to name but a few marques) so-called contract dealers have had their contracts terminated and are looking for new means of earning a livelihood. These companies, mostly family-run, will not easily be displaced. They will specialise in marketing replacement parts complete with a competent and reasonably priced service. Fichtel & Sachs, a Mannesmann group subsidiary, offers a franchise system under the AutoCrew name, naturally also for the optimum marketing of its own products, shock absorbers. Bosch, the giant in the electrical field, is also looking for new openings for its service workshops. The objective is to gain marketing expertise in tyres by cooperation with Goodyear, with Bosch offering Goodyear’s tyre trade partners know-how in the automotive field in return. Specialist markets like ATU with their increasing importance in tyre marketing should not be overlooked either. In the nineteen nineties ATU grew from zero to the current number of 230 outlets throughout Germany, all of them with high turnover figures, i.e. each of them probably turning over well above 2.5 million euros. ATU founder Peter Unger’s appetite, however, is not nearly satisfied, the expansion will go on. The article in the January issue of NEUE REIFENZEITUNG describes the individual tyre marketers. It queries many things, asks many questions without being able or willing to provide the answers. Only one thing remains clear: To found a new company exclusively for tyre trading (including the services related to it) is dangerous. The chances of surviving a long start-up phase are regarded as relatively small. The gist of the article is this: In future we will see an ever increasing number of Fast Fitters making the bulk of their turnover with tyres, while Automobil, Bosch, AutoCrew and similarly derived Fast Fitters will focus mainly on other products, with tyres nevertheless generating a significant share of total turnover, somewhere between a quarter and a third.
Deutsche Dunlop GmbH, part of the Goodyear Dunlop Tire Group (Western Europe), has announced a record turnover in 1999 of 835 million Euro and a net profit of 63.3 million Euro. The operating profit was 12.5% of turnover. Dunlop Germany invested 68.5 million Euro, which represents 8% of turnover. The company has capital of 300 million Euro. Whilst employment in the rubber and tyre industry in Germany has decreased over the last ten years by 30%, Dunlop has increased its number of employees by 21% over the same period to 5,176 at 31st December 1999. The income of the four directors was excellent, averaging 2.9 million marks each as recognition of delivering outstanding results. From a German standpoint it is worth noting that the management have boosted “location Germany”. They showed the business world that it is possible to achieve excellent results in a German environment. The management remains optimistic for the future. Finance director, Dr. Volker Wingefeld, said that Dunlop expect to achieve results for this year comparable to those of 1999. The work of marketing director Dieter Seibert should also be mentioned. The Dunlop brand is stronger than ever before in Germany. The willingness to buy Dunlop is increasing significantly. Until last year the management held a press conference every year in Frankfurt, close to Hanau. Now, as part of a much bigger group, they are calling it a “press-breakfast” to get their message across.
The two cooperatives team Reifen-Union/Top Service Team KG (currently about 400 outlets) and Vereinigte ReifenFachhändler GmbH (VRG; currently about 200 outlets) have agreed a far-reaching cooperation on all levels, including the servicing of large customers and fleet management. An important ingredient is the immediate creation of a company called “Team Reifen Partner” GmbH + Co. KG (TRP), which will gradually incorporate both VRG and new companies as members. VRG members will still have to approve this measure officially in a meeting at the end of January. The team group, to date with a membership of 25 regionally successful tyre traders and as such the number one marketing group in the tyre market, will thus embrace also smaller and medium-sized tyre trading companies, whose members have already given their official consent to the plan. The new group based on the team/VRG cooperatives with more than 600 outlets is set to expand its base. An essential precondition for tyre dealers with local and regional operations and aspirations also to serve trans-regional customers, especially fleets and leasing companies, is full geographical coverage throughout Germany. At the same time the new partners want to coordinate their procurement and stocking policy and improve their purchasing terms and conditions.
At the beginning of the 90s Goodyear had great success – especially in USA – with its aquachannel tyre “Aquatred”. Now the tyre manufacturer launches in North America the dual-aquachannel tyre Aquatred 3 with greater dry traction performance and an 80,000-mile treadlife Warranty. The all-season tyre will be introduced initially in 18 popular T-rated sizes.
Michelin has embarked on a major new marketing programme that is designed to further enhance their position as the leading tyre brand in the UK. The campaign involves a series of television commercials using the catchphrase ‘Show me the logo’ which will centre around customers demanding the Michelin brand when purchasing tyres.The campaign will be supported through dealership promotion.
As Sales And Marketing Director at Trelleborg Wheel Systems (TWS) Rotatec GmbH & Co. KG, Oliver Gehlker has been responsible for the German market since 3rd July. According to TWS, Gehlker, who is 33 years old, is very experienced in the tyre business. Before he signed up to his new job, he held different positions in the tyre industry and retail sector.
For the 17th year running Gummiwerke Fulda held its dealer conference in March, this time in combination with celebrations in honour of the company’s one hundredth birthday. Last year Fulda boss Bernd Hoffmann had “to make do” with the presence of Goodyear’s top man for Europe, Valensi, but this time the management representation could not have been better. Sam Gibara, CEO of the group, made his welcoming speech to about 1,500 guests from all parts of the world, with Valensi and Gerd Grünenwald, responsible for marketing and sales Europe, also very pleased to help the company celebrate. Last year in particular and recent years in general proved to be very good years for Fulda. Until a few years ago the Fulda brand was heavily dependent on ATU and Stinnes, but that is now completely changed. Fulda’s German turnover is now spread over many small customers. Turnover with the two large ones is still important, of course, but gone are the days of total dependence. In Germany Fulda sells more tyres than Goodyear, but one has to add that Goodyear prices (trade to user) are significantly above Fulda’s. In the more recent past Fulda has had to compete with, or be measured against, Dunlop as well. It will be very interesting to see where the emphasis of Gerd Grünenwald’s and his team’s multi-brand strategy will lie. Details can be found in the April edition of NEUE REIFENZEITUNG.
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