Marketing the Retreading Industry
stay ahead of the competition
Sandro García-Salmones
Project Manager for Valebridge Media Services.
9 tips that will help you stay ahead of the competition
tip
Do some research!
(France, Italy, Germany, Spain, UK)
Evolution of units of retreaded tyres sold within the EU 5
01
Recovery scenario BAU scenario Historical trend
2012
2014
2016
2018
2020
2010
6M 4M 2M
• MARKET • PROBLEMS
Misconceptions – the general public believes retreads are dangerous and are a faulty product. This was built on a poor level of quality in its early days that has proven to be difficult to overcome and re-convince fleets. Lack of Knowledge – Unless you work in the retread and tyre industry its incredibly common to find that people didn’t know about their existence Tyres – The price of new Chinese tyres and the high levels of imports across the world continues to threaten the industry’s existence.
• • •
02
Understand the opportunity
With the Chinese antidumping tariffs in place now, it is a great opportunity for the European Retreading Industry to invest in their business to take them to the next level.
Many Chinese manufacturers are moving their bases to nearby countries. There is probably a 5 year window for Retreading to prepare itself for the onslaught and lift its game.
WHY?
Innovations such as 3D Printing, Autonomous Cars and Trucks will be huge step forwards that will not only affect the products we sell at a base level but the very manufacturing process itself. We need to consider how innovations like this can help us and move our business forward. Instead of fearing these innovations, we must embrace them and think about how we can use them to fight our existing problems and future ones.
This is the perfect time to invest in staff, technology, marketing and innovation to ensure that we are ready for the future.
03
Distinguish yourself from the competition
The best way to attract a buyer’s attention is by standing out from the competition. You need to find your distinguishing factor, your Unique Selling Point (USP). When you have found your USP, you should promote it. Give your retreading brand a character and a story. Tell your buyers, for example, all about: • Your treads models • Performance • Independant tyre tests and testimonials of local clients
Can your product offer buyers something a little different? Make your client aware of that!
• •
04
You need an specific approach for each kind of client
Identify the groups who might be susceptible to a targeted communication approach There are three main key groups of clients that buy retreads for wholly different reasons:
Those who operate a Cost Per Kilometre approach to tyre management. For this segment, the key is to focus on illustrating the benefits in cold hard facts with statistics and definitive numbers.
Those who have historically bought retreads because they have “always” been cheaper than budget new tyres. If our products are priced similarly to new tyres, we must focus on delivering the message based on three pillars:
Supporting Jobs: A retreaded tyre supports 4.3 times as many jobs as a non-retreadable imported tyre and 50% of the retreading market goes to payroll Supporting local products: Three-quarters are produced locally Enviromentally Friendlier: The environmental impacts of retreaded tyres, depending on the criteria, are 19% to 70% lower than those of nonretreadable low-end tyres
Clients who buy retreads because they have application-specific requirements that can be best met by the flexibility of the retread process. Personalised Message: Tailor your message and communication specifically to the individual client and explain why retreading technically is the best option for their business.
GROUP
THREE
ONE
TWO
05
Images Speak Louder Than Words
If you want your retreading brand to succeed and thrive in the European tyre market, you need to build a powerful brand image. Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. It requires deep thinking, a team with strong communication and design skills, and an intimate understanding of your brand and market. Luckily, you don’t have to do it alone!
• • • •
06
A good service is key
As a society we have grown to expect more authentic, life-like interactions online. As our technological capabilities and comfort using them grow, so will the range of things we can do Digitally Together.
IDEA: Can we offer an online customer service with life-like interactions?
We might not always be cheaper than budget new tyres but we can offer a better service:
New technologies are pushing the boundaries of which types of professional interactions can be done online.
• customer service • Warranty
Warranty
Tell the world about your Retreaded tyres warranty
Warranties are a great way to fight misconceptions with the general public believing that retreads are dangerous and are a faulty product. Major retreaders have already had warranties for a long time but the key is continuously publishing communications about the warranty, what it includes, its advantages, etc. Strong marketing communication about your warranty delivers: • A Quality reference against your product. • Fights historical misconceptions and myths about retreads.
07
Free Trials Are A Great Tool…
Consumers tend to be more price sensitive if they are purchasing products that are undifferentiated or of a sort where quality is not particularly important to them. For those who are cautious about purchasing retreads, it still makes economic sense to let them try our product in order to know the difference with a low quality budget tyre.
IDEA: With FREE TRIALS consumers will have a feel of the product and will be encouraged to use the product on their own fleets whilst also considering its price effectiveness.
08
'The customer is always right' has never been truer
The breadth of information available to savvy consumers means that retreading companies can no longer get away with arbitrarily high prices or lack of transparency. We are now on a more value-minded society. It originated on end-consumer sites such as Amazon, where its strong product review culture has boosted the website’s popularity and reputation for being reliable and trustworthy.
IDEA: Can this be done in the retreading industry? If not, what about testimonials?
09
Bringing the end-consumer with us
IDEA: There has not been an industry wide campaign to promote retreads that targets the end-consumer. It is the right time to do it!
Consumers are willing to pay more for eco-friendly and recyclable products
natural
Comparted to a low-end non-retreadable tyre,
a retreaded tyre
enables saving...
70%
land use
29%
resource extraction
(ore, oil...), mainly because of the avoided consumption of steel casings
or growing hevea
as measured by particulate matter emissions
air pollution,
21%
water consumption
19%
CO2 emissions
24%
• Myths • sustainability
Retreads are not safe Retreads perform worse than new tyres The rubber pieces you see on the highways come from retreads
Myths:
We need to focus on providing education on the environmental benefits of retreading to the wider public as well as those inside the industry.
Thank you
It’s important to have native British-English speakers create original content for the UK; most of the European Union countries tend to follow British English as well. When the budget allows it, producing original content in the local language, or going multilingual, guarantees the best results. In the same way, it’s important to consider the coexistence of different languages within national borders. In Spain we have Spanish, the most spoken language, and then some territories have their co-official languages: Galician, Catalan, and Basque.
It’s always essential to work with native writers for each language.