German tyre manufacturer Continental is making a serious move on the Australian market. Set to launch a network of branded stores, in addition to expanding its existing wholesale activities, the tyre giant is planning to significantly increase its share of the local tyre market.
The world's fourth largest tyre maker, and Europe's most popular tyre brand, Continental is a strong performer in the European OEM (original equipment manufacturer) sector, but is seeking to supply rubber to a wider range of vehicles Down Under. To date, the 139-year-old tyre manufacturer is probably better known in Australia as the long-standing supplier of OE (original equipment) tyres to prestige cars from Europe.
"One out of every three cars leaving factories in Europe end up wearing tyres made by Continental," confirms Steve Brown, General Manager of Continental Tyres of Australia.
"[But] We don't just make tyres for Mercedes and BMWs. We're punching under our weight here in Australia... It's something we want to address."
On top of a new marketing campaign comprising TV ads airing during Channel Nine's Top Gear to improve brand awareness -- not to mention sponsorship rights for the world's most watched sports event, the 2010 FIFA World Cup Finals -- a key part of Continental's local strategy will be the roll out its own stores later this year.
The "Best Drive" stores will initially target commercial vehicles and truck operators, and then later move into the passenger vehicle market. There are already more than a 1000 Best Drive centres globally. Continental will also retain its representation via existing retailers.
According to Brown, Continental aims to become a "top 10" tyre brand in Australia.
Continental currently offers three brands in the local market: Continental high end tyres for BMWs, Volkswagens, Mercedes and the like; General tyres for 4WDs; and the budget brand, Sime.
"We position ourselves in the premium end of the market, [yet] we are available to everybody, not just high end customers. We offer a premium product for all budgets," explained Continental's Marketing Manager Gareth Taylor.
Continental was one of the pioneers of run-flat tyre technology (launching run-flats with BMW in 2004) and more recently launched the ContiSeal self-repairing tyre first seen on the Volkswagen Passat CC in 2009.
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