Ready For Success
Awareness, Products and Consistency are Key, Says CTNA
Continental Tire North America (CTNA) brought a few hundred of its dealers to tropical Maui for a few days of sun and fun in early January but mostly to outline its aggressive plans for growth and profitability.
Outgoing President Bernd Frangenberg (see page 11) said the economy made 2001 a lousy year for everyone in the tire industry. Continental AG, he said, was refocusing on cash flow, profit/loss and core business profitability, and would not make any more acquisitions unless they were "highly profitable and absolutely necessary."
Tom Roydhouse, senior vice president of the Commercial Group, said CTNA’s 2001 truck tire sales were up 9% over 2000, and OE/replacement share was over 9%. On the OTR tire side, CTNA held an 18% share overall, and a 4% share in radials.
Roydhouse said CTNA’s goals for 2002 were ambitious: truck tire share of 10%, OTR share of 20%, and a 25% share in the skidder tire segment.
CTNA is increasing its OE efforts with a bigger sales team, stronger focus on global OEMs, and a new truck spec program with incentives for both the dealer and the fleet.
Jack Fenner, director of sales, said CTNA is committed to staying decentralized to be closer to the dealer and move faster in the market. In addition, it will add a variety of new medium truck, OTR, industrial and agricultural tires this year, including a new super side radial that will begin tests mid-year.
On the passenger/light truck side, Mike Barker, the new vice president of sales and marketing, said his group’s focus would be brand awareness, better fill rates, timely release of new products, and a revitalized General brand.
CTNA will better leverage its OE positions, and build awareness for its brands with an aggressive consumer ad campaign, he said, building opportunities for dealers. Continental ads are already running, and a new look and ads for General are forthcoming.
Jim Mayfield, director of marketing, presented CTNA’s ad and promotion programs, and Jeff Jankowski, director of dealer sales, outlined the five new tires that will be launched in 2002: the ContiSportContact2 and ContiExtremeContact, and the General Exclaim, Ameri GS60, and AmeriTrac TR.