Tyres

Challenge

Leading MNC Trye manufacturer was being perceived to be offering budget products and not catering to premium segment. Recently launched a new product in premium tyre: sedan segment.

• Was skeptical about acceptability of premium tyre when launched and if it could  gain volume of 40K  in year 1 
• Explore a price increase of 10%-15% considering it was priced much below leader.

Mandate

Find acceptability of new product at higher price and to deliver 40K units. Increase prices for better margins.

Business diagnostics study with Sales team and dealers across India

Diagnostic strategies and recommendations

• Product superior to competition, trade confident of achieving 40K while co. internal teams confidence was low. 
• Marketing strategy required refocus to drive up the volumes through activation & promotional support as same was low due to lower HO confidence / past practice 
• Distribution needed to improve as internal cannibalization risk was holding expansion by sales team
• Sales team needed re-education as their perception/ confidence to grow was lower than trade’s due to past failures
• Increase competitive aggression. Promotional material needed to be revised  to match the benefit and direct comparison charts.
• Product training and benefit awareness for unconverted dealers