During Nokian Tyres’ recent introduction of the Hakkapeliitta 7, Tire Review sat down with Marc Bujold, business development manager for the tiremaker’s North American operations.
How do you plan to market the Nokian brand to North American consumers?
We already have a devout fan base that we need to start tapping into more. While we may not be able to afford to run ads in all the automobile magazines, we can become involved on enthusiast sites and forums in order to increase our presence. We are also planning to ramp up our participation in Facebook and Twitter in the coming months to make a big impact in the third and fourth quarters of this year. Using the Web and smart media buys, we can successfully reach consumers.
How has Nokian’s marketshare in North America changed in recent years?
It has definitely grown. Overall we’re still small, but we are a strong player in the winter tire market. From a technological standpoint, we have the lead and other brands are playing catch-up. We realize the need to increase market share, and that’s why we added our first all-season line, the eNTyre, to our product screen last year.
How has the eNTyre been received in the market so far?
The response to the eNTyre has been huge. It appeals to dealers because there’s an exclusivity involved – consumers can go anywhere to get Michelin or Bridgestone tires. It also allows us to offer Nokian products to dealers who don’t carry winter tires. Our existing dealers are excited because it rounds out the line and allows them to improve their margins.
What impact will North America’s growing winter tire market have on Nokian’s business here?
The winter tire market represents a huge opportunity for us, particularly in Canada. At 4.25 million units, Quebec’s winter tire market alone is nearly as big as the United States’, which is 5.3 million units. More and more, vehicles are arriving with high performance summer slicks as OE and people are realizing they can’t drive on them year-round. There’s a real opportunity there for us as consumers become more aware and educated.
Nokian invented winter tires; we were the first to produce them. As a brand, we will definitely benefit from growth in that market. People in the New England area know Hakkapeliitta by name. If you buy a new car in Vermont, you’re going to get Nokian winter tires. Our goal is to have that recognition in other large markets, as well.
What are Nokian’s plans for its Vianor retail chain in North America?
One of the challenges we’re looking at is deciding how to expand that network, whether it’s to continue to cherry-pick locations that are strategically beneficial, or to buy a chain of existing stores to achieve a more rapid growth. A large buyout would require a major investment, of course. At this time we’re still examining what the best strategy will be, but we do plan to continue Vianor’s growth in the New England area.
