How satisfied are you with Kumho’s position in the U.S. market right now?

“In regard to passenger tires on cars, we have improved our position, and our vision for the second half of 2012 has improvements in store forLTR. We have renewed our efforts for medium truck radials and have focused more resources directly toward TBR marketshare. We are moving ahead in the right direction in very difficult times, but I don’t think anyone is ever fully satisfied.”

Looking ahead, what are Kumho’s marketshare goals within the next couple years?
“We look for steady, continuous growth. New products and new programs are in the works that will provide consistent growth through the next few years. New emphasis on TBR has an increased marketshare goal in thissegment.”

Where is the North American passenger/light truck market heading in the next couple years?
“Look for more consolidation in wholesale and retail distribution channels. We will see improvement in industry units over the next several years, but no large gains in volume overall. However, market shifts will continue to pick up speed as new vehicles that have hit the market in the past several years will need replacement tires, new technology for better fuel economy evolves, and tiremakers continue to look for new ways to market and present products.”

At the dealer meeting last December, Kumho introduced its updated Premium Fuel program. How has that been received?
“We had about 2,100 Fuel dealers before, and when we went to Premium Fuel, we increased our numbers by 150%. We’re up around 3,400 right now.Those 3,400 locations were probably buying Kumho tires before, we just didn’t know who they were because they were buying from wholesalers. So,now that we know who they are, our job is to get them connected and to feel the heat, if you will – to feel what we do and learn a little bit more about Kumho.

“That was something we didn’t do really well in the past; we sent dealers checks when they earned them, but now we have to communicate with them. We have to let them know what we’re doing and give them ways to jump on board with our sports marketing or our social media activities.”

What permanent effects did the recession have on tire consumers?
“The recession dramatically changed the way the consumer goes about things – and it will stay that way forever. Some sentiments will vanish if the economy goes back up, incomes increase and gas prices drop, but some of the aspects are here to stay.

“First, people are looking for a deal. It is socially advantageous to get a deal and share it with people. At a cocktail party, people are always looking for something to talk about that makes their friends say,‘Ooh, ahh!’” and one of the things that impresses today is when someonedays, ‘You won’t believe the deal I got on a set of tires.’ Those typesof things have increased and it’s now a game, to a certain degree, to find the best price.

“The other thing is that people are looking at the products they have tobuy before they make the purchase. The Internet has made that possible.Everyone is searching all over for the best possible deal. They don’t necessarily want the cheapest price, but they want the best value. They look and see what’s available, and then they create an expectation for what level they are. Dealers have to connect more with the consumer, whowants to know who made the tire and where it was produced. And that’s what we’re trying to do – connect with the consumer more get our brand name out there so consumers know who we are and that we make our own products, etc.”

How should dealers address the new “consumer reality”?
“Consumers can still be guided by the person behind the counter. Becauseeven though they do the research, they can’t learn everything. Consumers are now researching more and more, so tire dealers need to know a bit more about each tire to really connect with consumers and create experiences that meet their expectations.

“The recession definitely changed the way consumers buy tires. They wantto learn more up front so they don’t go in totally unprepared. So the dealer has to be ready for that. He also has to tell the consumer about himself – he has to be visible, whether it’s on the Internet or connecting in other ways within his market area. Dealers have to let consumers know who they are, how they do business, and what they offer –and prove they offer a value.”

What has Kumho’s strategy been regarding social media?
“With the ever-changing dynamics of the Internet, it was imperative for Kumho Tire to have a larger presence in social media. Nowadays, people are spending on average 8 hours a month on Facebook. This breaks down toabout 15 minutes a day where people become virtual: interacting with friends, family members and companies they like online. With our social media, we have taken the organic approach of becoming a friend of our fans. The average consumer only buys tires every 3 years, but they are active with us on Facebook daily. This helps to create not only fans of the Kumho brand, but brand ambassadors who genuinely feel connected to the brand.

“Kumho Tire USA’s Facebook page also interacts with many of our sports marketing entities such as the New York Jets, Los Angeles Lakers, and U.S. Soccer online and offline. By interacting with people at sporting events and having them like our page, we then create an awareness of Kumho as a brand associated with their team, and therefore a brand associated with their life. This adds to the growth of the overall brandimage of Kumho and helps spread our lifestyle message.”

What is Kumho’s plan moving forward regarding eco-friendly/low-rolling resistance tires?
“Kumho has been working really hard on low rolling resistance. As we jumped into Ford, Chrysler, Mercedes and GM OE fitments, it became more of a requirement. So there’s a lot of technology that we’ve created to just do one-off tires for a vehicle, and now we’re incorporating that into lines of tires.

“For instance, we sell the Ecowing KH30 through Discount Tire. The reason we chose one retailer for that is because it’s difficult to market ‘environmentally-friendly’ as a position, as a product, because it’s kind of an overall feel for what you do. So going forward you’re going to see more products coming out with more eco-friendly attributes –maybe not just low rolling resistance, either. Our Eco Solus KL21 produces 10% less crumb rubber dust along the road, improving air quality. There are a lot of things you can do to tires to improve the environment, so we’re working pretty hard going down that road.

“We can’t just take everything and make it low rolling resistance, but we can incorporate low rolling resistance into an existing product that’s already performing how we need it to perform. For example, we nowhave four medium truck tires that are SmartWay-verified. We took tires that are currently doing the job in the marketplace, and just added low rolling resistance to them. So we don’t offer two versions of the tire; if you buy a line-haul drive tire or a trailer tire from us, it’s SmartWay-verified. It’s the only kind we offer.

“Incorporating eco-friendliness into the tires you sell that already meet performance goals, I think that’s how consumers are going to want “environmentally-friendly” presented to them. They’ll take it if it’s included, and it may swing them one way or another between a tire that’snot environmentally-friendly and one that is, but it’s not something they’re going to capture and pay more for at the present time. If it meets their needs and hits their expectation of price, economy, ride comfort, noise, etc., they’ll buy it. But they’re not going to sacrificesomething else they want for eco-friendliness. You have to incorporate that into the tires you make that do whatever the consumer is asking them to do. Other tire manufacturers are taking that path, as well.”