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Undercar checklist: Ziegler Tire, “On the Road with Service and Quality since 1919”

EXHAUST STEERING STEERING STEERING (FWD) SHOCKS/ STRUTS MISC.

Part Acceptable Recommend Part Acceptable Recommend Part Muffl er Tie-rod Control ends arm bushing Resonator Tie-rod Sway sleeves bushing Pipes Idler arm Strut R.B. Hangers Pittman Upper arm ball joint Front Center Lower U-joints link ball joint Rear Link pins U-joints Acceptable Recommend Part Acceptable Recommend Acceptable Leaking Recommend Part

Rack RF Alignment and pinion

Bellows LF Front springs CV joints RR Rear springs

CV boots LR Bearing repack Acceptable Recommend

The undercar checklist from Ziegler Tire applies to both light and recreational vehicles, according to Scott Schwab, retail service manager at the company’s Canton, Ohio, outlet (see pages 40-41). Technicians also are trained to write down the tire size; make sure each tire is fi lled to the proper psi; and record RF, LF, RR, LR and spare tire tread depths. For tread depths, protocol is to inform the vehicle owner what is acceptable and what is recommended.

Risk vs. reward

Sports marketing from the tire manufacturer’s perspective

By Bob Ulrich

Part two of two

When J.C. Penney CEO Ron Johnson hired entertainer Ellen DeGeneres to be the face of the company earlier this year, his reasoning was very clear. In an interview on “Th e Daily Ticker,” he said:

“My instinct... is spokespeople aren’t really necessary unless a company is going through a profound change. And because there’s a lot of marketing associated with change, if you can validate that by (hiring) someone who everyone trusts, that can be a powerful advantage.”

Can a celebrity spokesperson or famous athlete profoundly aff ect business success? Will a close affi liation with a sports team have the same eff ect? To fi nd out, we asked tire manufacturers what they thought about sports celebrities in particular and sports marketing in general (in part one in our April issue, we looked at sports marketing from the tire dealer’s perspective).

“Th e Offi cial Tire of...”

Tire brands have been represented by a lot of athletes over the years. Some became iconic pairings, such as Olympian Carl Lewis (in red pumps!) and Pirelli, hall of fame golfer Arnold Palmer and Cooper, and racing legend Mario Andrett i and Firestone.

Aft er 40 years together, Andrett i still signs autographs at the grand openings of Firestone Complete Auto Care stores.

Bridgestone Americas Inc. spends tens of millions of dollars on sports marketing annually. “It’s a sizeable investment and a good chunk of our overall marketing spend,” says Dan MacDonald, vice president of community and corporate relations.

The Bridgestone brand is the “Official Tire” of the National Football League, National Hockey League and PGA Tour. Th e company also has sponsorship deals with the Tennessee Titans and the Indianapolis Colts in the NFL and the Nashville Predators in the NHL.

Bridgestone’s sister company, Bridgestone Golf, has professional services contracts with a number of golfers, including Fred Couples, Paula Creamer and Lee Trevino.

Th e Firestone brand is the Offi cial Tire of the IZOD IndyCar Series and Firestone Indy Lights, as well as Major League Baseball (MLB).

Phil Pacsi, vice president of customer marketing and education for Bridgestone Americas Tire Operations LLC, says in his experience, the pros of using a celebrity or athlete or team to enhance brand awareness outweigh the cons.

“In our case, Mario (Andrett i) and the professional golfers lend extra credibility, since Mario spent the majority of his legendary racing career on Firestone brand tires, and the golfers utilize Bridgestone Golf products.

Continental is the Offi cial Tire of Major League Soccer (MLS) and all of its teams. It’s also the Offi cial Tire and exclusive tire supplier to all of the Grand-Am Road Racing Series, including the Rolex Sports Car Series and Continental Tire Sports Car Challenge Series.

2010-2011 Continental market share and unaided brand awareness

15 70.9%

45.8% 25.0%

2010 2011

12 3.4% 12.1%

9

6

3 1.0% 5.8%

6.8%

8.7%

17.0%

0 Major League Soccer (MLS) Grand-Am

Continental’s Major League Soccer and Grand-Am sponsorships have been very successful in increasing brand awareness. (Source: Continental)

“When you look specifi cally at MLS and Grand-Am, there are very few athletes that transcend their sport or their specifi c market, so it would be diffi cult to build an entire brand around them as an individual,” says Travis Roffl er, director of marketing for Continental Tire the Americas LLC. “For example, David Beckham is one of the most recognized players in the game of soccer, but he plays for the LA Galaxy. It would be diffi cult to feature him as we seek to target fans in the New York area who relate more to the Red Bulls and their players.”

Roffl er says other factors to consider when sponsoring an individual include the possibility of a player being traded to another team, gett ing injured, having a bad race/season, etc. “So ultimately, we felt it was a bett er direction for our brand to have the ability to connect to a variety of athletes and teams based on the circumstances.

“We have implemented a targeted effort that is locally focused. We made it a priority to be relevant to the audience we are working with by featuring players or drivers that they can relate to directly.”

“Th e use of a celebrity spokesperson can generate positive or negative market awareness for your company depending upon their actions and reputations,” says John Aben, senior vice president of sales and marketing for Nexen Tire America Inc. “Team marketing is less risky. You typically get what you pay for, whether spending high dollars on a successful large market team or going cheap and sponsoring a small market team.”

“I think celebrity spokespeople can work and have worked really well on a local basis,” says Fred Koplin, director of marketing communications for Yokohama Tire Corp. “It’s really good if you pick the right person.

“I think on a national basis, it’s much more risky. Costs go up. It’s hard to pick the right person who appeals to a broad spectrum.”

He cites Sullivan Tire Co. Inc. as a dealer that does it the right way. Th e 56-store chain based in Norwell, Mass., “has done a good job of linking the high-character individual to (its) high-character, highquality, high-service brand.”

Team sports marketing

Yokohama sponsors the NBA’s Houston Rockets; MLB’s Los Angeles Angels of Anaheim and Philadelphia Phillies; and NFL’s Dallas Cowboys, Baltimore Ravens and New England Patriots.

“We want to use sports marketing as a way to build accounts with the fan, build brand awareness, etc.,” says Koplin. “We want that promotion to be activated all the way through.”

Yokohama looks at brand awareness and sales trends on a local basis. For example, sales during a promotion are compared to sales made without a promotion.

Hankook Tire America Corp. tends to support professional and college teams as opposed to individual athletes, accord

Yokohama Tire Corp. also has a multi-year agreement with the New York Yankees which includes a bleacher wall sign in left fi eld at Yankee Stadium.

ing to Mark Rowe, director of brand communications. Th is year, Hankook expanded its in-ballpark marketing program, which features signage behind home plate, to 26 MLB teams.

“Th is branding billboard visibility also carries over into 85% of the country that watches these games on regional sports cable networks,” says Rowe.

“We have some very well-documented examples of what our sports investments do for Hankook’s, as well as our retail partners’ business. A good example is our ‘Spring Great Catch Rebate and Sweepstakes’ promotion. Dealer enthusiasm for the program is very high, and store level participation rates convince us that sports sell tires.”

Maxxis International sponsors the New York Yankees, Baltimore Orioles, Los Angeles Dodgers and Washington Nationals baseball teams. It also

Sports marketing is “an opportunity to make connections with dealers and bridge the gap between manufacture and sale,” says Rick Brennan, Kumho’s vice president of marketing.

It’s personal

According to Cooper Tire, national awareness in its brand increased dramatically in 1997 with the addition of Arnold Palmer, “coupled with the signifi cant increase in advertising media expenditures for the year.” Michelin North America Inc. hopes to accomplish the same thing with Olympic snowboarding champion Shaun White and its BFGoodrich brand.

As for team sponsorships, a recent report on the eff ects of NFL sponsorships on brand equity revealed “the expected signifi cant three-way interaction between time, sponsorship and fan

‘Store level participation rates convince us that sports sell tires.’

Mark Rowe, Hankook Tire America Corp.

is a sponsor of the NBA’s New York Knicks. Th e benefi ts of team sponsorships are twofold, according to Scott Barker, marketing manager of Maxxis International—USA’s Automotive Tire Division: “international recognition of our signage and increased brand awareness.”

Kumho Tire U.S.A. Inc. sponsors two NBA teams, the Los Angeles Lakers and the Miami Heat (see page 52). It also has contracts with NFL teams, the University of Southern California football team and the United States Soccer Federation (USSF).

Kumho shares a sponsorship of the Worcester (Mass.) Sharks minor league hockey team with C&R Tire Co. Inc. Working with C&R Tire, Kumho has in-game signage, a “Pump up the Volume” video board feature, game program ads and in-game promotions with co-branded T-shirts. affi nity.” Authors Kirk Wakefi eld and Anne Rivers came to this conclusion: “Passionate fans... have more positive att itudes toward the offi cial sponsors of the NFL than do less passionate fans,” and that leads to a corresponding increase in sales.

The findings also emphasize “the importance of continuing longer term contracts to build the eff ects and benefi ts of the sponsorship linkage.”

Bott om line, sports marketing is more than just a strategy tire manufacturers and dealers are using to sell more tires. It’s also personal on many levels.

“Without the relationship between our salespeople and our dealers, sports marketing would not work,” adds Yokohama’s Koplin. ■

To see an expanded version of this story, which includes a look at motorsports marketing, visit www.moderntiredealer.com.

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