As the parent company of the Dunlop brand in South South Africa (SA), Apollo Tyres SA has launched a new campaign to highlight its Dunlop Zones retail network’s commitment to striving for “precision tyre fitment,” in line with the Dunlop brand’s positioning of “Driven by Precision.”
Buying tyres was originally an exclusively face-to-face experience. But it didn’t take long for the role of the telephone to become an integral part of consumer tyre buying research. The latest technological step forward saw the Internet become a sales channel in and of itself, not to mention a vital tool for wholesalers with the right business-to-business e-commerce systems. Now with some sources putting online tyre market share just shy of double figures, could the fast-growing mobile Internet market driven by the latest generations such as the Apple iPhone represent another new sales and marketing territory for tyre companies?
With mobile phone technology accelerating at a rate of knots, and following the recent high profile launch of Apple’s iPhone 4, Tyres & Accessories took the opportunity to survey the two leading online application markets for a glimpse into the future of online tyre selling. Apple’s App Store and its only real competitor, Google’s Android Marketplace boasts tens of thousands a quarter of a million applications between them. These small pieces of software offer users handy utilities, games and – crucially for this market – shortcuts to news, information and shopping services. Well-known online auction site, a system that has been used to market significant numbers of tyres and wheels for years now, has been offering both iPhone and Android versions of shopping platform for sometime now, allowing uses to bid on the move, however so far there have not been too many moves in this market from tyre companies. That said, some of the biggest players in the tyre industry have got in on the act with their own mobile phone applications and here is a brief look at some of the best available today.
Tyres, conveyor belts and latterly sensors and drive train components – all products Continental AG is well known for. But did you know that the European market leader in the car tyre segment is supplying Adidas with the latest rubber compounds for sports shoes? The two companies, both Official Sponsors of the recent 2010 FIFA World Cup South Africa and the forthcoming 2014 FIFA World Cup Brazil recently signed a co-operation agreement to solidify the deal.
This category reminds us that it is not all about round, black, rubbery objects; tyre shops need the consumables, tools and machinery to demount, repair, balance and align wheels and tyres. Three of last year's nominees have made it again – Apaseal, Auto4 and Rema Tip Top – and are joined by Harvie Tyres and Pro-Align, who won last year's Innovation Award.
The 2009-10 financial year was, for Apollo Tyres, a year in which the company “walked new geographies, met different people, mingled with various cultures, learnt new lessons, and have been amply rewarded for our keenness to explore newer pastures and challenges.” These words from company chairman Onkar S Kanwar describe a period of massive change for the tyre maker, a time of transition that has seen Apollo emerge as an entity operating on a global level.
Evonik has announced that it will close its Botlek, Netherlands carbon black plant on 31 July 2010 as part of a production “realignment” programme. Plans are said to be in place for the site to continue as a supplier of energy to businesses located in the vicinity for the news few years. "While the Botlek facility has always excelled in quality and efficiency, the market has moved away from Northwest Europe. Botlek’s great performance is, unfortunately, not enough to overcome the logistical disadvantage", said Jack Clem, Evonik’s head of Carbon Black.
According to the company, the guiding principle behind the realignment of Evonik's European carbon black production capacities is “closer to the customer.” Their view is that, with the carbon black market in Western Europe is increasingly shifting towards Central Europe and that the main drivers of this change are the major tyre manufacturers and producers of mechanical rubber goods.
Singaporean tyre and wheel distributor Stamford Tyres has announced a net profit of S$9.4 million (£4.5 million) for the end of financial year 2010, which ended on 30 April, over eight times the net profit of S$1.0 million in FY2009. The company’s president and CEO, Wee Kok Wah said: “Over the past year, we have worked hard to lay the foundations for the Group’s future growth… In accordance with the much improved set of results the Board of Directors has recommended a final dividend of 1.0 Singapore cents to reward our loyal shareholders.” The company reduced its operating expenses by 16.3 per cent, from S$64.5 million in FY2009 to S$54.0 million in FY2010, while Stamford experienced the slightest of declines in gross profit – down 1.5 per cent to S$66.5 million – and its gross profit margin, which was at 21.4 per cent as opposed to 22.7 per cent the previous year. Higher tyre purchase prices worldwide and lower sales from the Group’s Thai wheel plant were the main causes.
An article on the South African website Business Report reported on the ruling of the High Court in South Africa to set aside the decision, made in 2007 by the Trade and Industry Ministry, to terminate anti-dumping probes against Chinese tyre exporters, bringing "fair competition" to the tyre manufacturing industry.
As part of its investment in marketing communications aimed at boosting brand profile both within the tyre industry and amongst key consumer audiences such as tuning and performance enthusiasts, Maxxis has appointed Amy Colbourne to the position of marketing and sales coordinator. Ms Colbourne, 24, works alongside Maxxis International UK’s managing director Derek McMartin and has taken on the day-to-day responsibility for the smooth running of the company’s advertising and sponsorship programme and its online marketing activities.
Marangoni Retreading Systems is venturing into new commercial ground after establishing a cooperation agreement with Marathon, part of the Leader Rubber group in South Africa. According to the retreading systems manufacturer, partnering with Marathon opens the door to two million unit-strong South African new tyre/retread market. Marangoni Retreading Systems and Marathon expect to complete South African market penetration by the end of 2011.
The agreement see Marathon provide the distribution platform and sales support to partners producing retreads with the Ringtread system, which is seen as a quality and cost saving response to the price-based market made up largely of Far Eastern products.
As an official sponsor of the 2010 World Cup, Continental AG is not missing a trick when it comes to exposure. On 1 June, less than two weeks before the world’s highest profile footballing tournament kicks off, the automotive supplier has equipped all 32 team buses with its HSR 1 premium bus tyres.
According to the company, the HSR 1 was designed especially for use on motorways and regional transport – perfect for shuttling players from game to game, they say: “Continental is therefore making a major contribution to the safety of the world’s best footballers because the tyres are the only connection with the road and have a contact patch that is just the size of a postcard,” said spokesman Alexander Lührs.
During the 2009-10 financial year sales at Apollo Tyres’ operation in India, the Netherlands and South Africa increased 63 per cent to Rs 81.2 billion (₤1.2 billion), with operating profit growing from Rs 4.4 billion to Rs 11.9 billion (₤175.0 million) and net profit leaping 364 per cent to Rs 6.5 billion (₤95.6 million) – a result company chairman Onkar S Kanwar described as “an impressive performance by the company.
While Michelin, Pirelli, Cooper, Kumho and – apparently – two other firms were battling it out to win the 2011 Formula 1 tyre supply deal, Continental AG was busy adding another championship to its football sponsorship portfolio. Conti’s decision to become a ‘premium’ sponsor of the DFB (German Football Association) Cup in its home market in addition to the firm’s global sponsorship of this year’s World Cup and the 2014 event in Brazil, demonstrates some typically Teutonic pragmatism.
Rather than get involved in a bidding war that presents the winner with a logistic nightmare and a huge multi-million pound/euro/dollar bill, their thinking is that investing in a variety of top level football sponsorship deals reaches just as many potential customers. And this is without the associated hassle of having to develop, custom build, test and deliver some of the most expensive tyres in the world. True there is all the associated automotive excitement that comes with F1 support, but this way there’s no chance of your tyres making an equally public spectacle of themselves either, leaving the marketing department (and the R&D department) free to concentrate on other things.
Continental AG has added another championship to its football portfolio. In addition to its global sponsorship of the 2010 FIFA World Cup in South Africa and 2014 event in Brazil, the tyre maker has become a ‘premium’ sponsor of the DFB (German Football Association) Cup in its home market.
On 1 June Apollo Tyres chairman Onkar S Kanwar will formally inaugurate the company’s Reifen 2010 show stand in the presence of dignitaries and the global management team from India, South Africa and Europe. The company’s stand opening ceremony follows a press event announcing details of the products Apollo will be introducing into Europe, and “the value of a multi-brand strategy with Apollo, Vredestein and Maloya.”
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