Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Tire market driven by price hikes, not volume
- Fuel prices affect consumer driving behavior
- Rubber shortage contributes to higher tire prices
- Retread market allows for new source of revenue
- Competition from China puts U.S. tire makers at disadvantage
- Tire manufacturers turning to premium, value-added tires
- Tire consumers prefer independent dealers
- Tire consumers
Insights and Opportunities
-
- Switch from free tire inflation to selling nitrogen
- Promote fuel savings through free safety checks
- Encourage women tire buyers through incentives, site upgrades
- Hosting a free car-care clinic promoted specifically to women may help do just that
Market Size and Forecast
-
- Key points
- Overview
- Tire sales and forecast
-
- Figure 1: Total retail sales of passenger tires in the U.S. and Canada, at current and inflation-adjusted prices, 2002-12
- Figure 2: Total shipments of replacement tires for passenger tires in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
- Figure 3: Total shipments of replacement tires for light truck tires in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
Competitive Context
-
- Retread tires provide cheaper, more durable alternatives for trucks
- Retread market now under wing of replacement tire players
-
- Figure 4: U.S. sales of retreaded truck tires, by manufacturer, 2007
- Foreign tire manufacturers less prone to recalls, costs
- Alternative transportation choices more common, as consumers become less reliant on cars
Segment Performance
-
- High-performance tires gain sales momentum
- Smaller, passenger tires increasing in volume, price
Segment Performance—Performance Rating
-
- Key points
- Tuners driving future growth
- Biggest tire sizes most popular with young buyers
-
- Figure 5: Unit sales of H, V and Z/ZR high-performance tires, by volume, 2003-07
- Standard tire sizes stagnant
-
- Figure 6: Unit sales of standard tires, by volume, 2003-07
Segment Performance—Seasonality Description
-
- Key points
- Seasonal tires
- MS tires predicted to rebound to coincide with HP/UP tire growth
-
- Figure 7: Unit sales of mud/snow tires, by volume, 2002-06
- All-season tires
-
- Figure 8: Unit sales of all-season tires, by volume, 2002-06
Segment Performance—Car and Light Truck
-
- Key points
- Passenger tires increasing along with prices
-
- Figure 9: Total shipments and average price of replacement tires for passenger vehicles in the U.S. and Canada, 2003-07
- Light truck tires getting costlier as volume decreases
- Lighter P-metric tire to replace traditional, heavier tires
-
- Figure 10: Total shipments of replacement tires for light trucks in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
Retail Channels
-
- Key points
- Distribution leaders remain stable; auto dealerships increase market share
- Passenger tire sales, by channel
-
- Figure 11: U.S. sales of passenger tires, by retail channel, 2005 and 2007
Retail Channels—Independent Tire Dealers
-
- Key points
- Overview
- Pending bill to raise independents’ stature among service providers
- Discount Tire continues to dominate market
- Independent tire dealership sales
-
- Figure 12: U.S. Independent tire dealership sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Mass Merchandisers
-
- Key points
- Overview
- Wal-Mart sells one third of mass merchant tires
- Sears tire sales threatened
- Mass merchandiser tire sales
-
- Figure 13: U.S. mass merchandiser sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Warehouse Clubs
-
- Key points
- Overview
- Warehouse clubs, numbers of stores and tire sales
-
- Figure 14: Warehouse club growth, number of stores, 2003-07
- Figure 15: U.S. warehouse clubs sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Company-Owned Tire Stores
-
- Key points
- Overview
- Company-owned tire store sales
-
- Figure 16: U.S. tire company store sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Service Stations
-
- Key points
- Overview
- Service station sales of tires
-
- Figure 17: U.S. service station sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Auto Dealerships
-
- Key points
- Overview
- Auto dealership sales of tires
-
- Figure 18: U.S. Auto dealership sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels—Other
-
- Key points
- Overview
- Pep Boys
- Monro Muffler Brake & Service
- Midas Corp.
- Tire Rack
- Other Internet resources
Market Drivers
-
- Gas prices reach all-time highs…
-
- Figure 19: Motor gasoline retail price per gallon, national average, 2001-08
- …compelling consumers to seek smaller cars over trucks and SUVs
-
- Figure 20: Most popular cars and trucks, based on U.S. sales, April 2008
- Consumers hitting the road with less frequency than before
-
- Figure 21: Estimated vehicle miles, 2000-08
- Rate of registered cars hitting the road slowing
-
- Figure 22: Total U.S. registered automobiles and estimated passenger automobiles miles driven, 1998-2006
- Rubber shortage increases global demand, prices
Leading Companies
-
- Key points
- Five companies control 91% of all tire sales
-
- Figure 23: Retail sales of replacement tires in the U.S. and Canada, 2005 and 2007
- Goodyear top player in tire market
-
- Figure 24: Market share of replacement car tires by volume, by manufacturer and brand, 2005 and 2007
Brand Share—Goodyear Tire and Rubber Co.
-
- Key points
- Strike slows 2007 sales
- Rubber costs, global competition increase
- Price increases, more premium tires on the way
-
- Figure 25: Goodyear annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
- Company facts
Brand Share—Bridgestone Firestone USA (BFS)
-
- Key points
- Investment in retreading operations
- Projected 80% increase in operating income by 2012
- For now, steadily increasing tire price hikes
-
- Figure 26: BFS annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
- Company facts
Brand Share—Michelin
-
- Key points
- No to PAX, yes to Energy Saver
- 2010 goals: faster growth, higher prices, higher performance
-
- Figure 27: Michelin annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
- Company facts
Brand Share—Cooper Tire and Rubber
-
- Key points
- Focus on premium tires
- Price increases, cost cutting measures
-
- Figure 28: Cooper annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
- Company facts
Brand Share—Continental AG
-
- Key points
- New products, market analysis, lead to sales breakthrough
- Price increases continue through 2008
-
- Figure 29: Continental annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
- Company facts
Innovation and Innovators
-
- Sidewalls that smell like lavender to target women
- Retractable studs allow instant versatility between wet, dry roads
- ‘Smart tire’ sensors to alert danger in real time
- Exclusivity distribution deals designed help grow luxury tire market
Advertising and Promotion
-
- Overview
- Performance
-
- Figure 30: Take Control, Goodrich, 2008
-
- Figure 31: Tame the road, Hankook, 2008
- Safety/reliability
-
- Figure 32: Safety, Bridgestone, 2008
-
- Figure 33: Safety and reliability, Goodyear, 2008
- Figure 34: Innovative reliability, Bridgestone, 2008
-
- Figure 35: Reliability, Michelin, 2008
- Emotional edge
-
- Figure 36: Selling tires on attitude, Cooper, 2008
- Figure 37: Selling tires on attitude II, Cooper, 2008
-
- Figure 38: Selling tires on attitude III, Cooper, 2008
- Figure 39: Targeting the luxury buyer, Toyo, 2008
-
- Figure 40: Environmentally friendly, Yokohama, 2008
- Promotions
-
- Figure 41: Rewards tie-ins, Goodyear, 2008
-
- Figure 42: Go Speed Racer, Yokohama, 2008
- Figure 43: NASCAR, goodyear, 2008
- Brand authority
-
- Figure 44: Brand awareness, Bridgestone, 2008
Fast Forward Trends
-
- The Black Diamond Life
- What's it about?
- From supermarkets to the TSA
- Why not tires?
- Science Goes Pop
- What's it about?
- What we've seen
- The Tire Oracle
Vehicle Usage and Maintenance
-
- Household car or truck ownership
-
- Figure 45: Household car or truck ownership, by gender, age, race or ethnicity and household income, April-May 2008
- Responsibility for vehicle maintenance
-
- Figure 46: Responsibility for vehicle maintenance, by gender, April-May, 2008
-
- Figure 47: Responsibility for vehicle maintenance, by age, April-May, 2008
- Driving behavior
-
- Figure 48: Consumer attitudes regarding driving, age, April-May 2008
Tire Purchasing, Type and Spend
-
- Who purchases tires
-
- Figure 49: Purchases of passenger, pickup, SUV, and van tires in past 12 months, Jan-Nov 2007
-
- Figure 50: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by age, Jan-Nov 2007
-
- Figure 51: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by household income, Jan-Nov 2007
-
- Figure 52: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by number of people in household, Jan-Nov 2007
- Consumers less finicky about tires, preferring all-season
-
- Figure 53: Types of tires purchased in the past 12 months, Jan-Nov 2007
- Amount spent on tires
-
- Figure 54: Amount spent on tires purchased in the past 12 months, Jan-Nov 2007
- Type of tire purchased, by region
-
- Figure 55: Types of tires purchased in the past 12 months, by region, Jan-Nov 2007
Brand Usage
-
- Passenger car tires
-
- Figure 56: Use of passenger tire brands, Jan-Nov 2007
-
- Figure 57: Use of pickup/SUV/van tire brands, Jan-Nov 2007
Factors on Tire Purchase
-
- Factors influencing tire purchase
-
- Figure 58: Factors influencing tire purchasing decisions, April-may 2008
-
- Figure 59: Factors influencing tire purchasing decisions, by age, April-May 2008
-
- Figure 60: Factors influencing tire-purchase decisions, by household income, April-May 2008
- What tire buyers consider at time of purchase
-
- Figure 61: Most important factors when buying tires, by age, April-May 2008
Tire Maintenance
-
-
- Figure 62: Extent of tire maintenance, by gender, April-May, 2008
-
- Figure 63: Extent of tire maintenance, by age, April-May, 2008
-
- Figure 64: Extent of tire maintenance, by household income, April-May, 2008
-
Race and Ethnicity
-
- Tire spending
-
- Figure 65: Amount spent on tires purchased in the past 12 months, Jan-Nov 2007
- What tire buyers consider at time of purchase
-
- Figure 66: Most important factors when buying tires, by race or ethnicity, April-May 2008
- Responsibility for vehicle maintenance
-
- Figure 67: Responsibility for vehicle maintenance, by race or ethnicity, April-May, 2008
- Tire maintenance
-
- Figure 68: Extent of tire maintenance, by race, April-May, 2008
Cluster Analysis: Price Seekers, Advice Seekers and Quality Seekers
-
- Price seekers
- Opportunity
- Who they are
- Advice seekers
- Opportunity
- Who they are
- Quality seekers
- Opportunity
- Who they are
- Cluster characteristics
-
- Figure 69: Tires clusters, April 2008
- Figure 70: Important selection criteria, by clusters, April 2008
- Figure 71: Main influence of purchace decision, by clusters, April 2008
-
- Figure 72: Beliefs and habits, by clusters, April 2008
- Figure 73: Beliefs and habits, by clusters, April 2008
-
- Figure 74: Responsibility for the maintenance, by clusters, April 2008
- Figure 75: Brand of tires on the vehicle, by clusters, April 2008
- Cluster demographics
-
- Figure 76: Tires clusters, by gender, April 2008
- Figure 77: Tires clusters, by age, April 2008
- Figure 78: Tires clusters, by income, April 2008
-
- Figure 79: Tires clusters, by race, April 2008
- Figure 80: Tires clusters, by Hispanic origin, April 2008
- Methodology
Custom Consumer Groups
-
- Key points
- Responsibility for vehicle maintenance
-
- Figure 81: Responsibility for vehicle maintenance, by gender, April-May, 2008
- Tire maintenance
- Opportunity
- Support
-
- Figure 82: Extent of tire maintenance, by gender, April-May, 2008
- Tire purchase factors
- Opportunity
- Support
-
- Figure 83: Most important factors when buying tires, by race or ethnicity, April-may 2008
Appendix: Trade Associations, Government Agencies and Magazines
Back to top