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News/Views
Toyo’s plans for 2019
TARGETED MARKETING IS ALREADY PAYING OFF FOR THE BRAND
Tim Chaney’s broad goal is to take Toyo to the masses. Along the way, Toyo Tire U.S.A. Corp.’s vice president of marketing says he will not forget what — and who — have made Toyo such a strong Tier 2 brand in the U.S.
Modern Tire Dealer sat down with Chaney and Roy Bromfield, Toyo’s president and chief operating officer, at the SEMA (Specialty Equipment Market Association) Show in Las Vegas last year to talk about their plans for 2019. As usual, Toyo’s presence on the trade show floor was substantial.
“We’re going to maintain and defend our strong position for this audience here, the enthusiast audience, through our existing motorsports activities,” said Chaney. “All of our drivers are returning, and our participation in all of our races continues.
“Our event marketing in the enthusiast world, both UHP and light truck, continues. So we’re heavily invested in this world, and we’ll continue. That’s the first thing.”
Consumer education is a different story, he said.
“Our awareness is not what we would like it to be for the mass market. We’re not as well-known as we are in this world. We have a number of initiatives we’re working on in the marketing and advertising space with some regional and digital marketing efforts to build our (consumer) awareness. We’ve got a bit of work to do in that area, but we’ve got great opportunity as well.
“We’ve been growing primarily through the expansion of our distribution channels. And dealers are doing a great job for us, and we’ll continue to invest in our expanding dealer-distribution channels to support those dealers. But direct-consumer marketing and advertising and mass market is what we’re working on and looking to expand next year.”
Bromfield said the company wants to expand on its original equipment fitments.
“We have some reasonable positions on a number of Japanese manufacturers, but we look to do more with some of the domestics here. OE positioning really does help build brand awareness, so it’s consistent with what Tim was saying in the aftermarket. It does give us (more)
“We do see… the heavy influence of dealers on the purchase decision at the retail level,” said Tim Chaney, Toyo’s vice president of marketing (pictured next to a Jeep CJ7 fitted with Toyo Open Country M/T tires). “There’s no doubt. But we’re looking to balance that with (brand) awareness, opinion and consideration.”
credibility. And it gives us brand awareness. Working with our Japanese headquarters, Tim’s group just completed a major global brand-positioning study. We have many markets in this country and around the world that are still not aware of the brand. Outside Japan it’s a global issue.
“OE is part of the positioning,” said Bromfield. “We have to balance OE and replacement in terms of capacity and where we want to direct capacity.”
Chaney said the study to which Bromfield was referring also included a “customer-segmentation study,” a first for Toyo. “So we have a better idea who is more predisposed to buy our tire and who should be our target customer. We’re still working through that data.
In 2018, Toyo targeted Dallas as a market with plenty of sales volume growth potential. It had both a strong retailer base and consumers the company wanted to target.
Following a five-month integrated, multi-media advertising program that included digital and search-engine marketing; local television and radio spots; and high-profile “platforms” like the Super Bowl, Academy Awards, NBA finals and NCAA Men’s Basketball Tournament, Toyo experienced very positive results.
There were “huge spikes” in volume to Toyo’s website, said Chaney. “The TireFinder portion of our website, where people are shopping for tires for their own vehicles, spiked 1,150% in that time frame. And we saw that in some of our other markets we targeted as well.
“In that five-month concentrated period, we saw enough evidence, both anecdotally from the field as well as the data we had, that if we advertise they will come. We’re encouraged, and we’d like to continue and expand markets if possible as we go into 2019.”
Toyo also is the longest-running sponsor of the Ultimate Fighting Championship (UFC).
“We will continue with the UFC,” said Chaney. “They’re growing. They just did a deal with ESPN that starts in 2019. ESPN will expand their awareness and promote them heavily through their powerful media platform. We’re really excited about the UFC and ESPN partnership, and what it can do for us as well.” — Bob Ulrich
News/Views Bites
Discount Tire expands
Discount Tire added 55 stores nationwide in 2018, with nine outlets opened in December. The new stores are in Arkansas, Kansas, North Carolina, Texas, Wisconsin and Virginia. The parent company, ReinaltThomas Corp., now has 1,020 Discount Tire and America’s Tire stores.
Auto Pride grows
The Automotive Distribution Network has added two Auto Pride members in New York City: Brooklyn-based South Shore Auto Parts and Long Island City’s E&Y Distributors Inc.
Goodyear sponsors Cotton Bowl
Goodyear Tire & Rubber Co. will have naming rights to the Goodyear Cotton Bowl Classic for the next six years after signing a multiyear agreement.
Best Drive adds 4 outlets
BestDrive LLC opened four locations in the second half of 2018, including its first store in Oklahoma. The Continental Tire the Americas LLC subsidiary now has 28 commercial tire centers in the U.S.
Hankook hosts events
Hankook Tire America Corp. partnered with tire dealers and a tire distributor to host a dozen events offering free services to veterans and their families in 2018. The events are part of Hankook’s support of the Mobile Service Office (MSO) program run by the Disabled American Veterans (DAV).
Nexen honors veteran
Retired Marine Cpl. Steven Diaz is the new owner of the American Muscle for American Heroes Nexen Tire Dodge Challenger R/T. Nexen Tire America Inc. partnered with the Purple Heart Foundation to select a Purple Heart medal recipient to receive the custom-built 2018 Dodge Challenger R/T 392 Scat Pack.
Simple Tire sponsors tour
In partnership with the Wounded Warrior Family Support organization, Simple Tire LLC sponsored the 2018 Ford F-150 Raptor presented to a three-time recipient of the Purple Heart, Scott West, a U.S. Army veteran. Simple Tire is a sponsor of the organization’s High Five Tour.
Beth Barron is Chabill’s new CEO
On Jan. 1, 2019, leadership of Chabill’s Tire Service LLC transitioned to the second generation. Elizabeth “Beth” Gowland Barron took over as CEO, and her father, Charley Gowland, retired.
Barron has spent the last 26 years working for the 17-store operation, which does business as Chabill’s Tire and Auto Service. She most recently served as vice president of operations and sales for the business, which serves southern Louisiana.
“I plan to continue the tradition of high quality customer service that has been established under my father’s leadership,” says Barron. “With the ongoing support of the Chabill’s leadership team, we will continue to offer high quality products and superior technical services. We will also continue to look at expansion opportunities.” Beth Barron became CEO of Chabill’s Tire
Her father will retire 50 years after and Auto Service on Jan 1, 2019, when her father, Charley Gowland, retired. founding Chabill’s with Billy Parker in Morgan City, La., in 1968. They combined their first names to form the store’s name. Over the next five decades the business has grown to 17 stores and more than 130 employees. The company has expanded its tire brand offerings along with the automotive services it offers consumers.
ATD emerges from bankruptcy reorganization
American Tire Distributors Inc. (ATD) emerged from Chapter 11 bankruptcy on Dec. 21, 2018, following the completion of its financial recapitalization. The bankruptcy reorganization enabled ATD to reduce its debt by approximately $1.1 billion.
“We are a stronger company with the financial flexibility to build on an 80-year history of leadership and innovation,” said CEO Stuart Schuette. “We are laserfocused on delivering greater value for our customers and manufacturer partners, with differentiated capabilities based on advanced analytics.”
In connection with emergence, ATD is issuing payment for all pre-petition obligations currently due. The company recapitalized on a fully consensual basis, with the support of all of its key financial stakeholders, as well as its vendors and customers, and moves forward with $1.005 billion of committed exit financing arranged by Wells Fargo Capital Finance to support operations and future growth initiatives.
ATD filed for Chapter 11 bankruptcy protection Oct. 4, 2018. The bankruptcy filing came after Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. stopped distributing their passenger and light truck tires through ATD in the spring of 2018. Goodyear and Bridgestone formed a joint venture wholesaling operation, TireHub LLC, which began serving customers in July.
ATD said its operations across its distribution network served customers without disruption during the reorganization process. ATD began shipping products out of a new 1-million-square-foot warehouse in Blakeslee, Pa., on Dec. 3, 2018. The new Pocono Mixing Warehouse primarily services vendors in the northeast and mid-Atlantic United States as well as eastern Canada.
Bites
Marangoni expands plant
Marangoni Tread North America Inc. is expanding its Tennessee facility following a year of increased unit sales. The company is adding a production line to manufacture the XP Extreme Performance wide-base Ringtread.
GRI plant is ISO certified
The new Global Rubber Industries Pvt. Ltd. (GRI) specialty tire plant in Sri Lanka has achieved ISO 50001: 2011 certification for the implementation of a comprehensive and far-reaching energy management system.
Icahn buys RPM Automotive
Icahn Automotive Group LLC has acquired the 10-location business of RPM Automotive Holdings LLC based in Jacksonville, Fla.
Coker acquires wheel brands
The Coker Group is acquiring PS Engineering Inc. and Vintage Wheel Works. Coker Tire will become a distributor of both brands, giving customers the company’s first aluminum wheel offerings in its catalog and online.
Giti sponsors Rose Parade
Giti Tire (USA) Ltd. was the official tire sponsor of the Rose Parade and presenting sponsor of Decorating Places, an area where volunteers decorate floats, on Jan. 1, 2019, in Pasadena, Calif.
Sullivan signs 2 celebrities
Boston Bruins defenseman Torey Krug and New England Patriots fullback James Develin will continue as celebrity spokespersons for Sullivan Tire Co. Inc. in 2019.
Nokian has new headquarters
Nokian Tyres Inc. has opened its new North American headquarters in downtown Nashville, two hours away from what will be the company’s first tire factory in North America. The office opens as construction continues on Nokian’s passenger tire plant in Dayton, Tenn., which is scheduled to open in 2020.
Raben Tire adds store
Raben Tire Co. LLC has opened a commercial truck and farm tire center in Greenville, Ky.
Point S dealer expects new store to boost sales 20%
With six bays and two crews dealers who serve on the cooperative’s of employees, Cory Brown’s board. He says it didn’t make sense to tire store was servicing 1,500 invest in the signage and branding at to 2,000 vehicles a month from a 6,200- the Campbell Street store only to have to square-foot location on Campbell Street do it again when the new store opened. in Rapid City, S.D. “We were climbing all (The Campbell Street store is now fully over ourselves for space,” he says. focused on commercial tire business
Brown, president of Redline Automotive Inc., and his father, Ross Brown, vice president, knew they needed more space. Their retail, commercial and fleet business couldn’t remain under one roof.
After two years of planning and construction, the Browns on Nov. 19 opened their third tire store in South Dakota. The new Cory’s Point S Tire and Auto Service in Rapid City The showroom space is designed to be open and
airy, with lots of windows and a tall ceiling. The
is a retail-focused store with Browns plan to display a collectible car regularly. more than 11,000 square feet This 1962 Corvette belongs to Cory Brown’s mother. and 12 bays.
“It’s much more retail friendly. It has and fleets, and operates as Tri-State Tire a very comfortable waiting area with a Commercial Fleet.) fireplace,” Cory Brown says. “It has an “I have been pretty impressed with open air showroom with a lot of windows how the public has reacted to the Point and tall ceilings. Our old shop was a S colors and name. I’ve had a lot of really metal, pole barn space. This is more of great responses to not just how the store a retail-friendly space.” looks, but also the color scheme, and the
The store also features a counter-top fact Point S is an international brand seems work area for customers, Wi-Fi, and a to carry a lot of weight with our retail playroom for children. There’s even room customers. That’s been a nice revelation.” to park a 1962 Corvette inside the lobby. Moving the Rapid City retail business to They plan to display a different vehicle its own location will give the commercial every few months, including some that and fleet business room to grow. are owned by customers. In its first year, Cory expects the new
The opening of the new store is the store will help boost the company’s overstart of the Browns using the Point S all sales by 20%. That increase would name. Cory Brown is among the tire beat what’s become the norm. “Since 2008 we have averaged year-over-year growth of 16%. That’s the direction I would like to continue to head.” In 2018 he expects the business, which also includes a retail store in Belle Fourche, S.D., to end the year with just over $4 million in sales. Cory’s Point S Tire and Auto Service in In 2019 the business is Rapid City, S.D., sits atop a hill in the shooting for around $5 midst of a new retail development. million in sales.
News/Views Dates
February 20-23
Tire Industry Association Off-the-Road Tire Conference, Saddlebrook Resort, Tampa, Fla. (800) 876-8372 www.tireindustry.org
February 21-22
North Central Tire Dealers & Suppliers Association Conference & Trade Show, Treasure Island Resort & Casino, Red Wing, Minn. (952) 544-6805 www.northcentraltiredealers.com
March 5-8
The Work Truck Show, Indiana Convention Center, Indianapolis, Ind. (800) 441-6832 www.worktruckshow.com
March 8-9
North Carolina Tire Dealers Association Expo, Raleigh Convention Center, N.C. (877) 784-0111 www.nctda.com
Kumho names a new CEO for U.S.
Samuel Choi will take over Kumho Tire USA Inc. as its next CEO. He succeeds Harry Choi, who is stepping down after six years leading the tire maker’s U.S. operations.
Despite sharing the same last name, the two men are not related.
Samuel Choi has spent more than 28 years with Kumho. Part of his management experience was leading sales planning in the Middle East and Europe with a focus on the French market. He most recently served as president of Kumho Mexico.
He takes over operations in the U.S. as Kumho searches for its next global chairman. Jong Ho Kim has recently resigned, and the company says it has yet to pick his successor. For details on Kumho’s plans for 2019, read MTD Senior Editor Joy Kopcha’s coverage of the company’s annual dealer meeting on page 70.
Community Wholesale Tire opens first warehouse outside of Missouri
Community Wholesale Tire Inc. opened its fourth distribution center. The 77,000-square-foot warehouse, located in Peoria, Ill., gives the company nearly 600,000 square feet of warehouse space.
The company also operates warehouses in Kansas City, Springfield and St. Louis, Mo. It distributes to tire dealers in nine states: Missouri, Illinois, Iowa, Indiana, Kansas, Kentucky, Nebraska, Arkansas and Oklahoma.
“The additional warehouse space in Peoria allows us to better service our existing northern and central Illinois and Iowa customers, and expand our overall marketing area,” says Andy Berra, president.
