May 02, 2011
Brand awareness may be overrated
By: Bob Ulrich
Eighty-five percent of tire purchasers are directly influenced by you.” Those 11 words packed as much punch as anything else said at the 2011 Goodyear Dealer Conference in January.
The speaker was Jack Winterton, chief customer officer for Goodyear Tire & Rubber Co.’s North American Tire business unit. He has been with the company for 37 years, which gives him insight into how tire dealers and consumers think during the tire-buying process.
“With 85% of tire purchasers directly influenced by you, our reputations — yours and Goodyear’s — are intently connected. I can’t think of another consumer product whose brand image is as closely linked to the place where the product is purchased.”
That makes you unique, and pretty much the deciding factor when it comes to brand.
Winterton isn’t just waxing philosophic. Results from Modern Tire Dealer’s new “Retail Tire Customer Survey” bear him out.
According to the online survey, 52.5% of the retail customers who come into a dealership to buy tires do not specify brand. Another 25.7% specify a tire brand, but are convinced by the tire dealer to make a different choice.
So, close to 78% of your tire buying customers buy the brand you suggest to them, based on their driving needs, financial means and, in some cases, preferences.
The remaining 21.8% of them specify a brand and buy that brand. However, there’s more to a tire than just a brand name. How often do you suggest the line, or even the size?
I thought so. Add it all up, and Winterton’s 85% estimate might even be a little low. I have talked with many dealers over the years who believe their influence is greater than 85%.
There are other corroborating sources. A 2005 survey from Virginia Polytechnic Institute and State University puts the percentage of consumers who ask for a tire brand at the point of purchase at 30% or less.
When J.D. Power & Associates used to track original equipment tire brand loyalty, it discovered that light vehicle owners replaced their OE brands with the same brands about one third of the time. Keep in mind those were first-replacements. What about the second set of replacement tires?
Our “Retail Tire Customer Survey” addresses the loyalty issue brand by brand for both the first and second replacement sets. Take Michelin, for example.
Sign up for our Enews and receive the latest news, trends, and product information right in your e-mail inbox.