Two major issues are currently top of agenda of several multi-national tyre companies – the introduction from 1 November this year of European labelling regulations on grip, noise and energy consumption – as well as Tyre Pressure Management Systems. Bridgestone Europe consumer sales & marketing director, North Europe, Andy Lane, talked to Simon Warburton about their impact as well as the retail challenges facing the global manufacturer.
Lane joined Bridgestone as marketing manager for consumer products in 1999, prior to which he was marketing manager at Calor Gas. He has been consumer sales and marketing director for Bridgestone Europe, North Region, since January 2011.
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j-a: There has been much talk surrounding the introduction of tyre labelling in Europe – now it is finally about to become reality – what is Bridgestone’s take?
AL: “Tyre labelling is to be welcomed – first of all it gets people talking about tyres – it raises the profile of the tyre market. It is an aid to the retailer to explain what a tyre does to the end user, because, let’s face it, it is a distress purchase product. People don’t think about tyres on a daily basis.
“It will be down to the industry to publicise it – I don’t think we should expect any other organisation to make people aware. Tyre manufacturers, retailers and wholesalers need to play a part, as well as organisations such as the Tyre Industry Federation.
“There is [also] the Tyre Manufacturers Association of which we are part and another body we support that reaches out to a lot more parts of the automotive world, which is TyreSafe, that is a great organisation.
“We would argue [these labelling] three measures are very welcome but they are only part of the story in the tyre. There could be 15 measures, but we know people have busy lives and you need to get a message told.
“We would say it is a first step and we hope much more attention [on] technical selling from the retailer and industry.”
“Bridgestone was part of the project team [in the European Commission] and we actively participated in the tyre labelling legislation. What we are concerned [about] is who is going to police it.
“There will be fly-by-night guys who give the industry a bad name. We are trying to talk to government about that. There is good dialogue [with the] Department for Transport.
j-a: How does Bridgestone view the introduction of Tyre Pressure Monitoring Systems (TPMS)?
AL: “Everything you do in a car, whether it is accelerating or braking, gets transmitted to the road, is through tyres. That is why TPMS is important – this is basically why you have it fitted in the US. You have something that is a message to you on the dashboard, similar to the speedometer or revs and oil – this is why we welcome tyre labelling and TPMS – it is something more to talk about.
“We think TPMS is an absolute must – it will get people aware. When they start seeing the indicator on the dashboard, they might find out tyre pressures are low.
j-a: Is the European public ready for TPMS?
“TPMS will come as standard and is only to be of benefit, tyre labelling the same. For a number of years, we set off on a campaign of tyre awareness.
“We would go to a supermarket that would be supportive and would set up with Bridgestone staff – that would help us communicate tyre awareness to the general public.
“We were trying to make people aware of how to check tyres. We [helped] a large proportion of people to find out pressures they should be running their tyres at.”
j-a: There has been much debate in the UK surrounding winter tyres – could Bridgestone envisage their introduction into such a traditionally mild climate?
AL: “Bridgestone was not gung-ho with winter tyres in the UK. We were softly-softly with it even though there have been two severe winters, as the UK is long-term a moderate climate.
“We would look at all-weather tyres – there is a demand in Germany which we estimate at 3m all-season tyres – we see [this] as much more suited to the UK climate.
“Bridgestone would welcome talking to the end user on a product basis. If you go to a market that has strong winters, or even Central Europe, Germany and the Nordic countries, that is part of my brief.
“Customers there are much more interested in performance of the tyre and they will look at tyre reports [such as] ADAC and magazine tests [for] aquaplaning and curve aquaplaning.
“It is still a distress purchase, but they are having to think about tyre buying twice a year, when the clocks go forward and back. The conversations with their tyre retailer – they are [having] them twice a year.
j-a: How does Bridgestone view runflat technology?
“We are currently committed to runflat tyres (RFT). Bridgestone remains fully committed to developing tyres that continue to perform when they have zero pressure.
“A RFT can only go at so many miles per hour for a certain distance – it is much more about performance. We would hope our RFT would perform much better than the rest.
“Run-flat-tyres are limited to original equipment because of TPMS. As more and more vehicles become standard with TPMS, the opportunity for the driver to go retrospective from standard to RFT will open up.
“We see it as separating us from other tyre manufacturers, we believe we can produce an excellent RFT. It is going to go from being an OE product to vehicle free run-flat technology. It won’t matter what the vehicle is – you can fit RTFs to it.”
j-a: Why will RTF matter to the consumer?
AL: “Imagine breaking down in the rain at night or if you are a woman. With alloys [for example], it is very difficult to get the wheel off the rim, quite often it is seized to the rim.
“With an RFT in the pouring rain, you can drive 50 miles to find a tyre location and at least get off the motorway. As we look into the future, we think it will be standard, the same across Europe.”
j:a Bridgestone enjoyed a very high profile with its Formula 1 sponsorship – now you have exited the sport are there other ways you will be promoting the brand?
AL: “Since leaving F1, our main point of communication has been much more about people and their experiences, as well as product performance that benefits them.”
j-a: Can you give an example of that?
AL: “We had a number of comments about our advertisement with a new-born baby leaving hospital with a young couple. It is pouring down and they have to brake hard to avoid an accident. For Bridgestone, it was a change from the previous messages where it was much more brand.
“But the best thing about that ad was it got people talking about tyres and safety.
“We [also] sponsor Moto GP and downhill skiing. We have entered skiing as it gives that message [about] winter tyres. We are considering further sponsorship, which will be product oriented.
“Formula 1 one was really good for Bridgestone, especially in Europe, to raise our profile. At the point at which we came out of F1, our awareness was not really growing.”
j-a: Your area of responsibility, Europe, is undergoing a torrid time economically. How does Bridgestone respond in recessionary times to the challenges of providing the right range of brands to consumers?
AL: “Not everybody is the same – different people will behave in different ways. We have to be able to support three types of people in their different situations – premium, mid-range and budget – there is a place for these three.
“The tyre industry supports these three people. It is an industry that has been around for 100 years and it is still going strong. Recent times have been challenging. There is no denying these are probably the toughest conditions we have had in the tyre market.
“I have been in tyres since 1988 and I have seen two recessions in the UK. The reason [this time] is it is global, that is the difference. We did not see the severity of it coming, but we were expecting a downturn. Typically, tyres are last in, last out of a recession. We got a headwind and got time to prepare.”
j-a: What is the relationship between Bridgestone and the retail market.
“We have a retail partner programme and it is one of our biggest strategic directions. We establish close relations with retail partners – Bridgestone wants to come along and help you…recommend tyres and improve the knowledge of the staff – it is part of our long-term strategy – we see it as ‘we are together’ – it is across Europe.
“In the UK we have around 30 companies, which would represent in excess of 2,000 shops. Across Europe we have a soft franchise called First Stop and we go even further in that we support the retailer with advice beyond tyres such as development of their business in the aftermarket [for example].
“In the Nordic area, it has a big proportion of our sales, contributing around 40% [while] 15% of our sales in the UK [are] through First Stop.”
j-a: The UK has a reputation for independent retailers, what is Bridgestone’s view?
AL: “If somebody wants to stay independent, we will work with them or if part of a group, we will work with them. It is not for Bridgestone to judge right or wrong, our main focus is tyres. Whichever route, are people giving the right advice to the end user?
j-a: How does Bridgestone see that retail offer evolving?
The remainder of this interview is available on just-auto’s QUBE research service
