SPECIAL SPONSORSHIP IN THE TYRE INDUSTRY
The automotive industry is currently undergoing an exciting transformation which could bring a significant impact to the tyre industry. New opportunities for tyre makers will continue to emerge as demand for new products increases with more electric cars, car sharing becoming a norm, and the shift towards autonomous-driving.
The global tyre industry is projected to reach $ 306 billion by 2022, and we are now seeing a lot more competition in the industry as brands compete to gain an edge. Tyre manufacturers are trying to stand out by raising brand awareness. However, there is still a long way to go from awareness to actual purchase.
A popular way among tyre manufacturers to increase brand awareness is special sponsorship. We see many tyre brands sponsoring soccer, rugby, and even ice-hockey teams as well as endurance sports events – activities with presumably a high affinity with their target consumers.
However, lately we have begun to question the effectiveness of such special sponsorship, and how much they lead to purchase.
Especially with the new opportunities emerging in the e-mobility space, we believe there needs to be a shift in communications in order for them to be effective.
Needless to say, brand awareness is fundamental and indeed crucial. However, to effectively create an edge from the competition, it is also important to understand how consumers interact with your brand, as well as what drives brand trust and loyalty, which will encourage consumers to champion your brand. We call this methodology “brand value gradation journey”.
To know more about tyre brand value gradation journey, please contact Dam.