With winter fast approaching and some parts of the country already blanketed with snow, many consumers are switching to winter tires. And for good reason. A new survey by the Tire and Rubber Association of Canada reports 79 percent of winter tire owners say their tires have saved them from hazardous driving situations. As such, the global winter tire segment is forecast to grow at 3.3% per year through 2021 according to Smithers Rapra.
For tire manufacturers with a winter tire product line, this is a big, annual opportunity. But in the highly competitive tire market where there are many competing products, product variables like innovation and reliability are important but it’s price-setting that can mean the difference between a slippery season and winning big.
One of the world’s most recognizable global tire brands relies on Vendavo to better manage tire market complexity, grow margins and achieve its objective of being the first choice in the trade and with final consumers.
“The global tire markets are very competitive,” says the company pricing manager who has more than 10 years of experience in pricing design and development. “In some popular tire sizes, you can easily find more than 200 brands available. When being compared to so many other brands, we’ve got to be able to set the right prices, without sacrificing too much, or just as bad, pricing ourselves out of the market.”
Well-designed pricing rooted in detailed analytics is giving the company valuable insights on tire customer willingness to pay across numerous segmentations. With Vendavo, “we’ve improved internal price transparency, process, shortened our pricing cycles, and its already helping us capture more of the higher-margin premium tire market,” the pricing manager said.
In just over 18 months, Vendavo has helped this tire manufacturer reduce their sales cycle, optimize pricing at the product level, and realize a 7 percent lift in its premium tire sales mix.
“Our pricing capabilities and throughput have gone up exponentially with Vendavo. What used to take us 4 to 5 weeks is now taking us only 4 to 5 days. We’re getting more meaningful data, we’re acting more thoughtfully, and it’s paying off with higher margin sales,” said the pricing manager.
To learn more about how this global tire manufacturer has relied on Vendavo for smarter pricing, download the full story here.