After launching 11 new products in 18 short months, Kumho Tire USA’s 2017 strategy mirrors its upcoming marketing, “Take Control.” In an optimistic business update presented to 30 of its top tire dealers and distributors at its dealer meeting Dec. 8 at the Ritz-Carlton Hotel in Grand Cayman, the company announced plans for growth through the strengthening and controlled management of its existing efforts across product, sales, marketing and dealer initiatives.
Highlights:
Pausing New Product Launches
After an aggressive launch calendar in 2015-16, Kumho is renewing its commitment to research and development while holding back on releasing new products in the next 12 months. “We want you to catch your breath,” said Jim Mayfield, Kumho executive vice president of sales and marketing, addressing the crowd. Updates to come in 2018 include new all-season UHP designs to its Ecsta product family and new mud terrain innovations, he said.
New Factory Brings New Opportunity
Kumho leadership referenced the production automation and quality to come from tires produced at the new factory in Macon, Ga. Once fully online, the factory will help address growth of demand in OE accounts, particularly with Hyundai, Kia and Fiat/Chrysler relationships.
Refining Specials and Programs
Kumho is committed to being more balanced, stable and consistent, especially when it comes to its pricing and specials. The sales programs will remain the same, with more clarity and opportunity in the company’s Premium Fuel Program. “Every product that says Kumho on the side – that you buy from us, Kumho USA – will start in building bracket for the Fuel deal. If it says Kumho, it builds the bracket,” explains Mayfield regarding the simplification of one of their more popular programs.
Mayfield went on to explain that 2016 overstock specials will not be as common as they were due to the Macon, Ga., plant coming online. “Our inventory position is much more balanced than it was,” said Mayfield. He added that the company intentionally built up replacement tire inventory surplus as a safeguard, in case production at the new plant in Macon did not come online as smoothly as it actually did. This resulted in overstock specials offered throughout 2016 which then tapered off in Q4. “You won’t see as many inventory overstock promotions as you saw before,” Mayfield said.
Preparing New Dealer Tools
Expressing gratitude to its tire dealer partners, the company plans to roll out new tools and training videos in mid Q1 2017 to help its dealers and their employees be more effective and up to date on all the new products the company has recently launched.
Focus on Growth
“We have to grow,” Mayfield said. “In 2016, we had nice sales growth but we have to continue that in 2017. We want to rely on our new products, working with you to grow your business with us, and looking for new business as well. We have to do it in a way that is manageable and not disruptive. We’ve made that commitment.”
Growth strategy includes a shift in brand messaging as well as a combination of strategic consumer marketing centered around digital and social channels, sports marketing including making better use of its NBA sponsorships, and improving the consistency of brand messaging across all marketing campaigns, both consumer and dealer facing.
The business meeting wrapped up with remarks from NBA hall-of-fame legend, Dominique Wilkins.
