1、DSBDSB AdvertisingMar 1999DSBContents9.Suggestions 1.Market analysis2.Target consumers3.Product positioning4.Brand positioning5.Key points in the process of marketing6.Integrated marketing strategy7.Media plan8.Promotion plansDSB1.Market analysisOverall trend：The national sales in 1998 totals 1.6 mi
2、l pieces,with 2.4%growth compared to year of 1997.The market potential also increases slightly.The demand structure continues changing and the competition is being more intense.Private autos plays a more important role.In 1998,the total amount of private cars was 0.71 mil which took up 45.51%among t
3、he total auto sales.Personal consumption increase of tires is obvious.In Beijing,the number of private cars grew 8 times between 1992 and 1995.DSBCompetitive overview Some foreign and JV brands are still in their early stage:focus on the design of POP and outdoor exhibition.The major competition com
4、es from the brand image instead of the actual profits.It can be deducted that the real competition hasnt arrived yet.Shuangqian and huili,two shanghai-made brands lead the national market with its stable quality,vast distribution and long history.They are not only the profit-winners,but has very goo
5、d brand images.1.Market analysisDSB Area differences do exist due to the geography and climate.For instance,the competitors in Chongqing(mountain area)are different from those in Wuhan and Hefei(flat lands).The complete product line with different features is the premise to participate in the nation
6、al market.As we found through relative research,some brands like Goodyear and KUMHO input a lot in communications,but with slight feedback.It can be deducted that the response of tire market is comparatively slow.Thestrength and patience is required.1.Market analysisDSB The competition goes deeper a
7、nd wider which includes the price,service and construction of distribution channels.All brands havent differentiated their unique brand images yet among highly competitive clutters.The originally-equipped tires still have strong impact on consumers.Santana with Huili and Xiali with Sanjiao.The regio
8、nalism is extremely obvious.1.Market analysisDSB2.Target Consumers Taxi Civil autos Cargo autos Passenger transport autosDSBTarget Consumers Tires are tools of making fortune.The lowest cost is the eventual demand.Work day and night to make living.Regard himself as ordinary workers without technolog
9、y advantages.The short-term behavior is serious.Sometimes even use worn tires.Price is a major consideration.TaxiDSB Durability is the most important concern and the number of kilometers is their criterion of making judgement.Their measurements：No crack,no split and no upheaval are their basic requi
10、rements.They are greatly influenced by price.Sometimes,even ten yuancan affect their final choice.Target ConsumersTaxiDSB Their understanding to the veins are mostly restricted to the difference of bigger and smaller,deeper and more shallow.The detail of veins is meaningless and no one would choose
11、different tires for different roads.They began to care about the quality of the raw material of tires and had some own criteria to judge the tires,i.e,touch the surface to see if it is glossy or pinch the tire to see if it is hardTarget ConsumersTaxiDSBDecision-making process：Move the front tires to
12、 rear and only change new ones after totally worn.The words of colleagues are the most important,and then with the recommendation of dealers.Brand equity is not apparent among tires consumers.They dont have a firm belief towards a certain brand.The habit of using current or originally-equipped brand
13、s is obvious.Target ConsumersTaxiDSBThe core requirement of taxi drivers,Durability and better priceTarget ConsumersTaxiDSBBackground：Civil autos drivers,civil autos man-in-charge,auto management staff of government Have high criteria and wide source of information on tires Especially in Beijing,the
14、 structure of organizations is quite comprehensive.Many people have the authority to influence the management of cars.Target ConsumersCivil autosDSBDSB Safety Other requirements like elasticity,anti-slippery derived from the safety Its very important to choose a good brand.Good brand must represent
15、the reliable quality.Price doesnt affect too much if its reasonable.Their measurements：Target ConsumersCivil autosDSBDecision-making process：When tires are half worn,changes are to be made.Generally,50 thousand kilometers is a reference-line.Most buying decisions are made by drivers,The points of pu
16、rchase are stable.Batch purchase is determined by both drivers and buyers.Drivers name the brand and buyers determine the POP.If anything allows,imported brands are preferred.Target ConsumersCivil autosDSBThe core requirement of Civil autos,Safety,also consider personal discountTarget ConsumersCivil
17、 autosDSBBackground:Overload is occasional.Due to the long-distance travel experience,cargo autos drivers generally have richer knowledge on tires.They also have the opportunities to use different brands.They confront the most problems on tires.Target ConsumersCargo autosDSB Durability-For the short
18、-distance travel,one-year durability is demanded.For the long journey,half a year is preferred.They have specific requirements to the endurance of tires.They began to notice the usage of veins of tires.Often coming across various accidents,they dont have a clear impression of negative parts of tires
19、 they used.Their measurements：Target ConsumersCargo autosDSBDecision-making process：Move the front tires to rear and only change new ones after totally worn.The words of colleagues are the most important,and then with the recommendation of dealers.They dont have an idea about brand.Target ConsumersC
20、argo autosDSBThe core requirement of Cargo autos,Durability and guaranteed qualityTarget ConsumersCargo autosDSBBackground：Sensitive about price The long-distance transportation requires better durability of tires.Target ConsumersPassenger transport autosDSB Durability,time length as their criteria,
21、also have an idea about kilometers They will use renovated tires out of the consideration of cost Sensitive about priceTheir measurements,Target ConsumersPassenger transport autosDSBDecision-making process：Keep using until the veins are totally worn.No stable points of purchase.For long-distance dri
22、vers,they often designate brands they are familiar with.Target ConsumersPassenger transport autosDSBThe core requirement of passenger transport autos,Durability and reliable qualityTarget ConsumersPassenger transport autosDSBBrand position among consumersHighPriceQualityhuilishuangqianKUMHOHankookGo
23、odyearMichellinDSBHighPriceQualityhuilishuangqianKUMHOHankookGoodyearMichellinBrand position among consumersDSBHow to satisfy the core demand of consumers?Taxidurability and better pricePassenger transportation autosDurability and reliable qualityCivil autossafety,also consider personal discountCarg
24、o autos Durability and guaranteed qualitydependable quality and price DSB dependable quality and price Competitors：MichellinHuiliKUMHOShuangqianConsumers:Taxi-durability and better priceCivil autossafety,also consider personal discountCargo autos Durability and guaranteed qualityPassenger transporta
25、tion autosDurability and reliable qualitySelf advantages:globally-renowned tire manufacturercomplete product line3.Product positioningDSB4.Brand positioning He is an professional engineer with international tires production.About 35 years old,all his life was devoted to the quality improvement of ti
26、res.He knows how to design different tires to adapt to the various needs of different automobiles.He is more familiar with the situation in China and believes in quality and service.Additionally,he is ambitious for the success and looks forward to perfection.DSBGoalEnhance the brand equity and relia
27、bilityGoalInduce trialdependable quality and priceValuePriceIts more practical to choose HankookSOVSOMDirectionFocus on the brand strength and quality.Expand the distri-bution channels with the supportof mass media.Encourage consumers to have trial.Expand the market shareon the basis of good public
28、praiseDirectionTVNP PosterRDBillboardTrial prizeexchange old with newexchange new with newpresentsMeansMeansDSB The purchase of tires is heavily influenced by users habit.A good brand of tires is the outcome of utilization.The better the quality,the more public praise.The current users are kept and
29、the new users will have trial due to the public praise.More consumers,higher sales volume.5.Key points in the process of marketingHow to convey the characteristics of HANKOOK to consumers and induce their trial?DSB6.Integrated marketing strategyTasks to be achieved：Differentiate HANKOOK with other b
30、rands with its unique brand image，quickly elevate the brand awareness，set up affinity and good relations with consumers and dealersIn 1999,the main goal is to complete the image differentiation and in 2000,the product features will be focused on the basis of the good brand image.Feature the strength
31、 and the spirits of HANKOOKPermeate High-price,medium-price and low-price markets Build as good brand image as Michelin and GoodyearTake market share from Huili and shuangqian with reliable qualityDSBdependable quality and priceMajor mediaOutdoor POPService centerEnhance the brand image and build th
32、e reliabilityEnhance visual impact,increase frequencyBoost up the confidence of dealers,create good buying environmentApproach the consumers and set up the consumers archiveTVRadioNP/MagazineTV sponsorBus AdBillboardLightboxposterbulletinexhibition shelvespromotionpresentsexhibition regular parties
33、between driversuser track6.Integrated marketing strategyDSBHANKOOK Service CenterThe close relationship between manufacturers and dealers will be stable after long-time management.Service CenterDealers cooperationSupport to brandTarget consumersRetail and batch purchaseDSBFor enterprises concerning
34、its brand image,sales is partially service.Service center is the promise of good quality and service.HANKOOK service center has good service to fulfil its commitments.The decoration and staff quality of service center both reflect the brand and enterprise image.Before the products are sold,reliabili
35、ty have been sold already.Value of HANKOOK Service CenterDSBThe use of HANKOOK service centerThe best place to present the brand image and the strength of the enterprise.In some areas with sufficient terms,service centers can be transformed to direct-selling locations.Shorten the distance between Ha
36、nkook and consumers Solve consumers problems and set up their brand loyaltyAvoid the imitationsPrevent the disordered priceOffer the best priceDSB7.Media PlanDSBContentsDSBTarget Audience DefinitionDSB Media Objective Focus on building maximum reach Induce trial Make consumers aware of the character
37、istics and brand image of HANKOOK tire.DSB Formulation of Media Strategy1 Bursting pattern(seasonality)2 Media mix3 Target reach vs frequency4 RegionalityDSBBursting Pattern(Seasonality)050100150200250300JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecRMB0000Source:X&LDSBBurs
38、ting Pattern(Seasonality)Peak sales season-summer(June-August)Invest one month earlier to preempt competitors activities(May-July)Special periods-i.e,policy change DSBMedia Mix/Media attaining higher reachCinemaMonthlyTVOutdoorRadioWeeklyHigh reachLow reachHigh perceptionLow perceptionDailyDSBMedia
39、Mix/the most-often seen media92.488.482.179.833.20102030405060708090100TVOutdoorRadioNPMagazine（Target audience：shanghai，drivers 25-55)(universe:130,000 sample:24449）viewershipSource:CMMS98DSBMedia Mix/CPM Index Comparison（Target audience：shanghai，drivers 25-55)(universe:130,000 sample:24449）Source:
40、CMMS980102030405060708090100TV-30sNP-HPRadio-30sOutdoorMagazine-F INDEXDSBMedia Mix/RecommendationDSBTarget Reach vs FrequencyPrinciples:-Achieve maximum reach -Frequency also required in some key markets NOTES:Even no advertisers have that sufficient budget to both achieve high reach and frequency!
41、DSB20%20%30%30%40%40%50%50%60%60%70%70%80%80%100100200200300300400400500500600600700700800800900900 10001000 11001100 12001200Target Reach%GRPs1+Reach3+ReachAppropriate GRP level in tier-1 marketsAppropriate GRP level in tier-2 marketssource：CSM rating period:Aug 98-Feb 99Target Reach vs Frequency（T
42、arget audience：male 25-55 universe:5,630,000)DSBRegionality Market Potential No.of automobiles（Buses,taxi,trucks）Annul no.of passengers Annul no.of transportation Competitive Action Advertising expense（TV&NP）DSBRegionalitySource:China statistical yearbook 98,X<IER1TIERTIERDSBRegionalityFocus on th
43、e tier-1 markets Tier-1 Remarks:The market prioritization derived from the analysis of autos number,media expenditures and other factors.The marketing considerations are not included.DSBBuying TacticsOverall TacticsDSBBuying Tactics/TV Rating Trend 024681012141618:0018:1518:3018:4519:0019:1519:3019:
44、4520:0020:1520:3020:4521:0021:1521:3021:4522:0022:1522:3022:4523:00STV 1STV 2OTV(Ch 20)OTV(Ch 33)SH Cab MovieSH Cab Sports（Target audience：shanghai，male 25-55)(universe:5,630,000)Rating%Source:CSMDSBBuying Tactics/Outdoor Perception 94.792.283.456.232.30102030405060708090100BusTaxiBus shelterLightbo
45、xPosterSource:CMMS98Conspicuous level of different outdoor types（Target audience：shanghai，drivers 25-55)(universe:130,000 sample:24449）viewershipDSBOther Buying ConsiderationsTV Sponsor some programs with steadily high rating to substitute the regular buying for saving budget Cooperate with media to
46、 produce specific programs introducing HANKOOK and its products-variety shows,Zhuhai F-1 racing sponsor,etcNPSoft AdCreative formats-make ads more eye-catching and arouse readers interestDSBMoving,special-sized and other creative outdoor ads(subject to the government approval)OutdoorRadioTraffic and
47、 music programs The locations must be scattered to attain higher reachPeak traffic and music timeOther Buying ConsiderationsInteractive programs In the areas with many competitors ads,use less but much larger sizeHighwayDSBMagazineProfessional magazines Soft AdsOther Buying Considerations(also be re
48、commended due to its popularity and authority among target consumers)Creative format-product logo at the top corner of each page,folder,etcDSBMedia Flowchart in 1999MAYJUNJULAUGSEPOCTNOVDECExpense(10,000yuan)TV450GRPs/city/monthTier-1markets30/15s270TV sponsor90Soft Ad36NewspaperTier-1marketsSoft Ad
49、15OutdoorBus80Tier-1marketsBillboard500Taxi120Radio30/15s217Tier-1marketsMagazineFull/Half P.26Tier-1marketsSoft Ad9Grand total1363DSBBudget SplitTV28%NP1%Outdoor50%Magazine2%Radio19%DSB8.Promotion PlansSubject,Good cars with good tires,Happy parties -The free gifts from HANKOOKContents,Select 20 br
50、ands of automobiles on the basis of HANKOOKs product line and the situation of each city.200 tires are provided to every city as free gifts.Events begin at the predetermined place and time,and end once no tires are available.DSB8.Promotion PlansSubject,1999 long-lasting happiness -the“Tai”brought by
