Continental reports successful 2008, anticipates ongoing market share growth
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Continental Tire executives say the company is on the move, noting how just a few years ago the brand was largely unheard-of in the U.S. market – except for those consumers whose high-end sedans or sports cars came from the factory with its tires. Continental is the world’s fourth largest tire manufacturer, but until recently, it was known mainly as an original equipment tire manufacturer.
In recent years the company has strengthened its position in the market with a comprehensive plan that has accelerated product performance, offering innovative consumer focused promotions, creates retail value through focused dealer programs and highly trained people, according to Andreas Gerstenberger, executive vice president of sales and marketing for Continental Tire North America, Inc.
“We said we would become one of the top premium tire manufacturers in the North American replacement market, and we’ve done that,” Gerstenberger says.
The latest launched tires have achieved “outstanding results” in a number of tests in the U.S. and Europe, he adds, pointing out that it has consistently performed at or near the top in testing conducted by The Tire Rack. This year, the ContiCrossContact UHP was ranked No. 1 in a Tire Rack online consumer satisfaction survey of street/sport truck summer tires.
“And in competition, Continental Tire products are consistently doing well, on the track with the Super Lap Battle Street Class,” Gerstenberger says. “Continental Tire is today is positioned on one out of every five vehicles on the street. We back our strong OE heritage with premium manufacturers worldwide such as BMW, Mercedes, Porsche, Land Rover, GM and Toyota.”
He observes that the company continues to build relationships with a variety of tuning partners, including Hartge, Sportec, 9ff, and Giovanna wheels.
Continental also has launched a number of promotions, teaming with companies such as Twentieth Century Fox Home Entertainment, Navigon navigation systems and West Coast Customs, among others. It also raised its profile within SEMA (the Specialty Equipment Market Association), becoming the title sponsor of the Continental Tire Media Center for the annual mega-trade show.
“In this market, perception is key, so our marketing initiatives are designed to not only raise our profile, but to position Continental Tire as a high-quality, technologically-advanced, premium product, and drive business to our dealers,” says Gerstenberger.
He cites the “wildly successful” Ultimate Adventure promotion from earlier this year, in which consumers who purchased four Continental tires received a free navigation system. Continental also partnered with Twentieth Century Fox Home Entertainment and West Coast Customs to give away a custom Dodge Charger to coincide with the DVD release of the feature film, “Fantastic Four: The Rise of the Silver Surfer.” The promotions and sponsorships were coupled with “eye-catching print and electronic advertising” in a wide variety of automotive enthusiast and trade publications.
“All of our initiatives are calculated to appeal to a broad range of consumers – at all levels, not just those with high-end sports cars and sedans,” Gerstenberger explains. “As a result, our brand recognition level is higher than ever and the value proposition for our dealers is increasing consistently.”
Last year’s successful Curves ad promotion is being succeeded by a “Confidence” campaign coming in January. The effort is designed to help restore consumer confidence with the notion that you can always be confident that Continental’s tires “provide performance, protection, innovation, and fuel efficiency. All these benefits are also present with our new ExtremeContact line we launched here at SEMA.”
Continental’s retail focused Gold dealer program grew by 55 percent over 2007, Gerstenberger says. “We strive to remain consumer-focused with our dealers to elevate the brand,” he notes, adding that Continental also initiated a business development program as part of a commitment to helping its dealers continue to grow and prosper.
“And we cannot discuss our successes without mentioning perhaps our most important asset of all – our people. In 2008, we made a significant investment with the Engage 360 training program, which was designed to train not only out dealers but our staff as well,” he says. “We have a solid, well-qualified staff that makes the brand success possible. We could not do this without them.”
For more information, visit www.conti-online.com.
