Tire dealers will complain about pricing and they’ll get peeved over fill rate. But, more than anything, they expect even demand consistency from their tire partners.
A lack of consistency has plagued Continental Tire North America (CTNA) in recent years, a problem the company has acknowledged in the past but has not been able to resolve. At its recent Gold Distributor/Retailer Program meeting, held in Las Vegas in late March, CTNA’s newest management team vowed that positive change will come.
Without making excuses, CTNA’s leadership outlined the steps it will take near-term, with an eye toward bringing true consistency to its programs, policies and decisions.
“We cannot change everything tomorrow, but we are doing it step by step,” Andreas Gerstenberger, CTNA’s vice president of sales and marketing, told the 190 dealers in attendance. “We have some homework to do in some areas.”
Gersternberger left the details of planned changes to other presenters. Instead, he focused on broader market issues. OE, he said, will continue to be an important part of CTNA’s efforts, but the focus now will be on stability, not growth. Ideally, CTNA wants to hold its OE share at around 20%, he said, while significantly growing its replacement passenger and light truck/SUV share.
Overemphasis on OE, he suggested, caused disruption in replacement channels. With the emphasis shifted, dealers will have greater access to replacement products.
Program and pricing consistency, said Carl Casalbore, director of passenger/light truck tire dealer sales, have been major issues. Casalbore said CTNA had become addicted to daily and end-of-the-month deals, which not only caused channel disruption, it also created internal planning headaches.
Now, CTNA has quarterly price plans and sticks to them, he said. “For the last eight months, we have not cut deals at the end of the month or the middle of the month.” That has helped improve forecasting and, as a result, supply he said.
Flooding the market with OE tires has also stopped, he said. “We’re trying to package what OE over-runs we have to help you. We’re not in the business of OE over-runs,” Caslabore said.
Perhaps echoing the tiremaker’s new mantra, Travis Roffler, CTNA’s new director of marketing, told dealers: “Your past does not have to be your future.”
Though he had joined CTNA from Toyo Tire USA just weeks earlier, Roffler outlined his goals for Conti’s Gold Dealer Program, which include updating and expanding POS material; improving communications, support and program supervision; and starting a Gold Distributor and Dealer Council.
He also discussed ways CTNA is looking to build brand image and awareness for both its Continental and General brands. He said the General brand “has so much untapped potential,” and he wants to work to make it “our new, fun and exciting brand in the U.S.”
Roffler also unveiled the new Conti brand tagline: “Tires Engineered in Germany,” which will appear under the Conti logo on all ad and promotion materials globally.
Bruce Buckles, marketing program development manager, unveiled another way CTNA is working to build dealer confidence and consistency: an all-new complete showroom design system.
The Continental Component Showroom Concept, which will roll out in the fourth quarter, features modular display elements designed for longevity in appeal and utility. Sporting Conti’s gold and black color scheme, the system includes stand-alone and wall-mounted tire and wheel displays, overhead lighting and signage and various sales-counter looks.
Buckles said CTNA will make store design professionals available to dealers to help them rework their existing spaces.
The complete system was erected in the meeting room, giving dealers a chance to experience first hand how the different elements looked and functioned.
Lena McCord, CTNA’s e-marketing manager, said all of the tiremakers 14 dealer training programs had been transitioned from CD to online, complete with downloadable PDF versions of Conti and General product guides.
CTNA’s “Web toolbox” also includes new POS materials, tire data and images, an ad builder system and order forms for POS materials.
Later this year, said McCord, CTNA will launch its Certified Continental Product Expert program, an advanced training and certification initiative.