New Product Planning in the Replacement Tire Industry

After more than a hundred years of experience, consumer replacement tire purchasing remains a grudge purchase that takes place every two or three years (depending on vehicle and usage), and is thereafter promptly forgotten; despite the best efforts of billions of dollars of marketing by the world’s tire manufacturers. The problem from a marketing standpoint is that tires are, to an untrained and disinterested eye, virtually indistinguishable from each other. In addition, creating a call to action is truly difficult, given the typical two to three year purchase cycle. Only upon close inspection can one determine the brand and model of a tire, apart from enthusiasts who might also recognize the tread pattern. Even then, there are few manufacturers that have distinguished themselves sufficiently to create brand recognition, which Copyright © 2013 Journal of Business Forecasting | All Rights Reserved | Winter 2012-2013 21 could be used to shape the consumer purchasing decision. This is the first challenge of new product launches in the replacement tire market. Few consumers are ready for a purchase at any given launch time, and even fewer of them will care about that purchase. ...