Increasing sales through strategic marketing and distribution

08/2011 – 10/2011
Decreasing sales …. the reasons
*a research*

Content and method
1.) product(s) in the joint space(s)
2.) basic technical competitiveness
3.) basic distribution analyse
4.) basic marketing activities
Method : CUSTOR Phase : understanding / measuring
Source : consumers (E)
distributors (D)
Importers / Subsidiaries (S)

The products Basic awarness summary
consumers Distributors Importers / Subsidiaries
Market 1
except selected sports activities the
products are basically UNKNOWN
minor matter
minor matter
( 1 x Key Account Manager
“70%”)
Market 2 except selected sports activities the
minor matter
minor matter approx. 10-15% +
bonus for freelancer
minor matter minor matter
minor matter minor matter
Market 5
except selected sports activities the
main issue for one selected
Distributor
minor matter
( 1 x Key Account Manager
25“%”)
How did I come to this result ?

Results market 1 , strengths and weaknesses in detail
+ -
*Technical demands of the market is
covered by product range
*brand is known in the off-road sport
segment
*brand is known as a “good product”
*no “special winter tyres” (whole range)
*1 SI lower in H-category then competitors
*Price structure
*Sales structure
*marketing activities
*flow of information's
*time ( subsidiary )
*technical competence ( subsidiary )
*competent counterparts
*medium price-/ brand awareness
* Some segments of portfolio unknown

First market specific conclusions market 1 (1/2)
technical commercial / marketing
Winter tyres
clear marking ( M & S , “snowflake-on-the-
mountain symbol”)
Further researches of specifications
in accordance to the legal requirements (
tyre MUST have the same dimension and
the same or higher speed/load index.
creation of a price structure who gives the
opportunity for resellers to be interested in
our products .
no further (or higher priced ) sales to xyz
(1600pcs/2010)
(( b) decreasing TCM demands ))
creation of a sales structure , either by sole
distributor or by 2 or 3 distributors who are
be supported by other markets
After acquisition of a (sole-) distributor
(Re-)launch of Dual sport / Speedway /
Highway (Road-) tyres
(Re-) launch winter tyres
Re- launch of top sellers

technical commercial / marketing
creation of an constant information flow
creation of a information platform
(corporate intranet )
constant support of newly acquired
customer
Best solution : Sole distributor
supported by Product manager
(Marketing &Sales )
First market specific conclusions market 1 (2/2)

results – summary
Availability
(current Distribution)
brand awareness
(sales & marketing
activities)
OE –activities
(sales &marketing
activities)
Market 1
1.1. Warehousing (1/12
of annual sales)
1.2. Key Account
manager
1.3. Customers
Activities in the printed
Press
and leading online
platform for Offroad
motorsport
Planned (xyz)
Market 2
1.1. Warehousing
1.2. Freelancer
1.3. regional customers
planned
?
Planned after
establishment of a sale-
/price structure
Market 3
1.1. direct shipment
1.2. Market leader (on
demand)
? ?
Market 4
1. Sole distributor with
(own warehousing
planned)
Press
n/a
Market 5
1.1.several customers
with own warehousing
1.2. Key Account
Manager
Press
In progress (xyz)

product range / market presence ( consumer level )
The bigger the symbol, the better is the awarness of the products in the market
P1 P 2 P3 P4 P5 P6 P7 P8 P9 P10
Market 1
Market 2
Market 3
Market 4
Market 5

product range (existing consumer´s point of view) first impression
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1
0
N/A
state of the art ?
YES with reservations
No resultsNO
Fits on modern Bikes ?
Worth the money ?

Vision / timeline for first measures
10/2011 - 12/2011
Building up common MCT dealer information platform under xyz .com
10/2011 - 11/2011....
Europe wide (re-)launch (info) about M+S resp. Winter ware )
10/2011 - 01/2012
Building up a “buffer” to increase availability / + Distribution from
Production warehouse in smaller quantities ( limited for 6 months)
(re-)attracting internal personal or acquire addicted
external personal on key positions

Preview / next step
2nd visit subsidiaries / countries
Topic 1 : specification of the products
Topic 2 :Evaluation of the feedback from contacted (potential)
customers and distributors (consumers)
Topic3 : Do we really have a chance with a product we not known for ?

Loss of “XYZ –OFFTAKE” production
Loss of steady customers / consumers
Strategic marketing concept
“current situation”

Strategic marketing concept -> current situation
anonymous market
“sink or swim”-mentality”
Loss of steady
customers
( - volumes)
THERE IS A NEED and an URGE
TO
attract customers
get back lost
customers
(CONSUMERS
)
attract new
customers
(CONSUME
RS

MAIN GOAL:
demonstrate the customers + dealers +
consumers
that we are MORE THEN A CHEAP
MANUFACTURER
( even to justify “higher prices”)

“The Consumer” REMINDER ! This is shoppers' behaviour
Cognitive analyse
Where is the benefit ?
Is it worth the money
?
affective analyse :
Where is my benefit ?
Can I have fun ?
Am I save ?
Thinking ! Feeling !
Attitude

“The Consumer” = shoppers' expectations
short term availability
worth the money
benefit
Technical benefit

Splitting portfolio into 3 strategic
business units
SBU
3
SBU
2
SBU
1

Strategic marketing concept “current situation” and related quick solutions
**Technical
A lot of tyres for the same application range.
Technical competent and competitive
*Technical competent and competitive.
*Good chance to develop business.
*This SBU need to have a consistent
further technical development
Consolidation of goods in accordance to the application
defining of a unique sales proposition / unique marketing
proposition.
+ product requiring explanations.
SBU
1
but

lack of market conform (and legally required )
* dimensions
* markings
* Load performance
* Speed performance
*This SBU need to have a consistent
further Technical development.
SBU
2
**Technical
SBU 2 is the WEAK point of the portfolio

No negative or positive response from the markets.
This SBU need to have a consistent further Technical
Development . Specific products are interesting for
upcoming vintage trend .
Good chance to build up brand loyalty.
**Technical
SBU
3
lack of market conform (and legally required )
* dimensions
* markings
* Load performance
* Speed performance

Marketing approach
CORE
COMPETENCE
SBU
3
SBU
2
SBU
1

SBU1.4.
THE CURRENT POSITIONING
(Product group's within SBU´S)
Market growth
market
share
SBU1.2.
SBU1.3.
SBU1.1.
SBU1.5.
SBU2.1.
SBU2.2.
SBU3.1
DOGS
?

SHORT TERM TARGET
(Product group's within SBU´S)
Market growth
market
share
SBU1.2.
SBU1.3.
SBU1.1.
SBU1.5.
SBU2.1.
SBU2.2.
SBU3.1
DOGS
?
SBU1.4.

worth the money
benefit
Technical benefit
“The Consumer” = shoppers' expectations

Storage
(B2B)
SBU 1 = decrease of MOQ to “10”
Strategic marketing concept (Distribution policy)
AVAILABILITY IS A KEY ARGUMENT !
customers Distributors Consumerssubsidiaries
Increases
availability
customary in the
market ( 24h
from the order to
the delivery
towards
distributor
Justifies
“higher” prices
factory
SBU 2 = decrease of MOQ to
200units
SBU 3 = decrease of MOQ to
50units
SBU 1 = decrease of MOQ to 1 unit

Strategic marketing concept (CURRENT SITUATION) NNS results
Description Market 1 Market2 Market 3 Market 4 Market 5 Market 6 Market 7
Average
products
104,37% 96,72% 121,92% 89,43% 108,02% 107,16% 102,52%
! ALL MARKETS ARE PART OF A JOINT MARKET !
Analyzis Sales development 2007-2011 :
Market 3 does not have any chance to grow while market 4
indicates a share of market ( ETRMA figures ! ) of 110% .

ALL
BrandsStrategic marketing concept (pricing) CURRENT SITUATION
NNS
• Manufacturer/Importer
(Subsidiaries)
25-45%
• Customers
• Distributors
2%-10%
• Resellers
Consumers

Example GER price comparison
-too expensive to be a really cheap manufacturer
-The difference to major brands is to small
-too risky for a customer ( which consumer will buy the tyre... ? )
-What is the benefit for the consumer ?
Degrease prices dramatically
Generals task :
demonstrate the customers + dealers +
consumers
that we are MORE THEN A CHEAP
MANUFACTURER
( even to justify “higher prices”)
OR

Strategic marketing concept (pricing)
where is the place of the various SBU´s in the market ?
See current positioning in the markets + technical competence
Low levelHigh level Neutral
SBU
3
SBU
2SBU
1

Strategic marketing concept (marketing activity policy)
LINKAGE
customers Distributors Consumerssubsidiaries
SBU 3
SBU 2
SBU 1

Strategic marketing concept ( Marketing Support level )
SBU1
75%
SBU3
20%
SBU 2
5%

FIRST VALUE = MAJOR BRANDS
SECOND VALUE = BUDGET BRANDS
Marketing approach ( competitors activities )
Marketing activities contains :
- General technical Information's
- race results
- news
- sponsoring activities
ENTERTAINMENT !

Strategic marketing concept “The Consumer”
shoppers' expectations
worth the money
benefit
Technical benefit

Suggested marketing activities
USP
(unique
selling
proposition)
SBU 1 General :
-core competence
-History of Enduro racing
SBU1.1 :
Version “Dakar”
Aramid reinforcement of the
tread compound
(Grip vs. durability )
- Only real offroad patterns
with high Speedindex

USP
(unique
selling
proposition)
SBU2.1.
Tradition
SBU 2

USP
(unique
selling
proposition)
SBU3.1. / SBU3.2.
“winter usage”
Best mileage for the
money
SBU 3

USP
(unique
selling
proposition)
UMP
(unique
marketing
proposition)
SBU 1 SBU 2 SBU 3

Suggested marketing activities– information policy
External
Internal
improvement of the information flow
SBU 1 SBU 2 SBU 3

CI
Homepage
Social
Networks
Internal
SBU 1 SBU 2 SBU 3
external

CI needs to be
established internally
and externally
Slogan needs to be changed as the key message is not positive
Get going
Get it on
SBU 1 SBU 2 SBU 3

CI
Colours
Unique visual
identity for all
countries and all
publications
SBU 1 SBU 2 SBU 3

-General information
- Technical information
- Approval´s
- Activities
-Results ( Race a.s.o.)
-Links (Facebook a.s.o)
Homepage:
www.xyz.cz
XYZ is a
CZECH
company !
SBU 1 SBU 2 SBU 3

Information
material
Press
releases
Leaflets
exhibitions
Sponsoring
Press
Customer
(reseller) distributor
Suggested marketing activities – information policy
external
consumer
SBU 1 SBU 2 SBU 3

“sponsoring” on
consumer level
“Contingency
program” +
Race
services
external
SBU 1

“Contingency
program” +
race service
National
MX/Enduro series
: EACH race
1st: set of tyres
2nd: rear tyre
3rd : front tyre
Race service
support :
60 € as support
for every day ( x
30 races / year) =
1800€
external
SBU 1

Strategic marketing concept “ taking care about the consumer”
shoppers' expectations
availability
Worth the money
Benefit
Educated ,
addicted sales
manager for
every key
market

creating storages /
-creating direct shipment
(low amounts)
12/2011 06/2012
Verification ( cost /
efficiency)
Strategic marketing concept => plan: immediate measures _ timeline
availability

01/2012
Start up discount ( NO
REDUCING OF THE
REGULAR PRICES)
Creating different prices for customers and resellers
Reselling price must be lower to have to opportunity for
the resellers to earn money. ( about 23% difference ???)
06/2012
efficiency)
Worth the money

Benefit
11/2011
Start development of
Radial Dual Sport tyres ,
ATV tyres and the
extension of the H-series
06/2012
efficiency) of other
actions

The last page
increase is ambitious !
Only possible if we are able to increase the
demand !
putting the responsible persons under pressure whilst
making a “forecast” without knowledge about the
markets is ....
Trust in the KAM and the quality
of the product and support them
as good as possible

Increasing sales through strategic marketing and distribution

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