Business

Saturday June 20, 2009

Michelin out to promote fuel-saving tyres

By EUGENE MAHALINGAM


MANY people know Michelin as one of the top tyre makers in the world. However, a common perception about Michelin is that because it is a premium brand, its tyres are too expensive for the average motorist.

And with the current economic downturn, most consumers are not spending on things they feel they can do without just a little longer – tyres included. In some cases, they may well be penny wise pound foolish.

Yves Pouliquen ... While our tyres are priced slightly more than other brands, the overall cost of ownership is lower as the tyres last longer.

Michelin is hoping to change this mindset, at least when it comes to the company’s products. On the local front, Michelin Malaysia Sdn Bhd recently invested over RM200,000 in an awareness campaign called The Michelin Diaries to promote its range of fuel-saving tyres.

Managing director Yves Pouliquen explains that the campaign was also intended to educate consumers on the benefits of using Michelin tyres.

“Drivers want tyres that can give them the best mileage. However, most of them feel they can save money by purchasing tyres that cost less, not realising that this would cost more in the long run,” he tells StarBizWeek.

“While our tyres are priced slightly more than other brands, the overall cost of ownership is lower as the tyres last longer,” he says.

According to Pouliquen, Michelin’s energy range of tyres with the patented Green X technology was developed using an improved silica compound that reduces the rolling resistance, meaning less energy and fuel required to propel the vehicle.

The campaign, in the form of roadshows, was from April 10 to May 16, and was held at designated tour sites and major shopping centres in Penang, the Klang Valley, Malacca and Johor Baru.

Pouliquen says the campaign had helped boost sales of its Primacy LC (Green X) tyres, which were launched in March.

“The response has been excellent. Sales of the tyres have exceeded our target by 50% since their launch,” he says, adding that the tyres were for vehicles in the middle to upper range segment, which comprised wheel rims of 15 inches and above.

Pouliquen explains that while the campaign was primarily targeted at creating more awareness of its fuel-saving tyres, Michelin Malaysia also displayed its full range of tyres for customers to get better acquainted with the brand.

“The objective of the roadshow was also to allow us to touch base with existing customers and potential customers, and connect them with our partners nationwide.Feedback from our partners has been good as a lot of them have seen an increase in new customers,” he adds.

Pouliquen says there was a “double-digit” increase in sales for the month of May and expects the same for June.

Michelin Malaysia has over 1,000 outlets that sells its tyres and 170 Michelin-branded stores nationwide.

The tyres are imported from Thailand, China, Europe, the United States and South America. Pouliquen declined to comment on how many tyres the company sells on average per year, saying only the company currently has a 10% share of the local tyre market.

“We have a 25% share of the upper segment, which comprises tyres for rims between 16 and 18 inches,” he says, adding that the price of its tyres range from RM120 to over RM1,000.

“While our tyres are generally higher priced, the gap is not that big. For smaller cars, the price difference of our tyres is between RM10 and RM15. What is RM10 to RM15 when it will last longer and provide better performance?” he asks.

He says the biggest challenge is that customers often view Michelin as an expensive brand.

“We always reposition our prices as time goes by. More customers have realised that Michelin tyres are actually affordable.”

All of the company’s tyres come with a six-year warranty. Pouliquen says it is difficult to say how long an average tyre would last.

“A good tyre alone is not enough. It really depends on the road conditions, the car and the person’s driving habits.

“The average tyre mileage in Malaysia is about 20,000. But we have tyres that can last more than 100,000 km,” he says.

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