Kumho broke the one million tyre barrier in 2008.According to sole distributor Micheldever Tyre Services (MTS), it was the first time that full-year sales of Kumho-branded car, van and 4×4 tyres have reached this height. Wholesale director Alan Baldwin said he was delighted with the news and added that MTS’s sales grew 30% over its full year 2007 result: “Throughout 2008 MTS and Kumho worked tirelessly to improve supply, and by a combination of better forecasting and supply chain management, product availability improved dramatically over 2007.”
According to Baldwin things got even better for MTS and Kumho in the early stages of this year: “2009 has presented further challenges particularly, when as in March, the huge increases dealers were seeing in consumer demand resulted in a near 40% increase over March 2008 sales.”
Baldwin commented that Kumho had achieved fill rates in 2008 never previously seen, giving dealers’ product on the shelves in far higher quantities than ever before. However, third-part data Tyres & Accessories has suggests there is also evidence that consumers are desegmentising away from more expensive brands to mid-range products they perceive as being better value.
According to MTS, Kumho has played its part by making “massive investments in stimulating consumer demand,” with the company’s sponsorship deal at Manchester United being the most high-profile example. This is said to have resulted in a real shift Kumho’s 2008 U.K. consumer awareness ratings. With two more seasons to run in the current Manchester United deal, millions more consumers will be exposed to the Kumho brand through corporate events, pitch advertising and dual branding initiatives and the company hopes that this will support further sales growth.
Baldwin paid tribute to Micheldevers’ Kumho dealers, the Ecsta Performance Centres: “By continuing our programme of prioritising support to the independent tyre retailer, we have seen incredible loyalty from our customers to both MTS and the Kumho brand.” Baldwin reported that Jason Burgess, MTS’s Kumho brand manager and his professional field sales team, have increased support levels to dealers significantly, and with several new and innovative dealer programmes set to provide further support in 2009/10.
MTS’s logistics operation has also seen massive improvements in 2008 and will apparently see even more in 2009, with investments focused on the areas of availability and service.
Concluding, Baldwin stated: “Having every Kumho size available every day at every MTS Warehouse is our target. Impossible? Five years ago we probably thought the current sales of Kumho were, but with the huge advantage Kumho currently enjoys of same day availability across the UK, our customers have proved that if you give them the product when they need it they will sell the tyres.” (Tyres & Accessories/Staffordshire, U.K.)
