Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Deflated sales on the road ahead
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- Figure 1: Total US sales and fan chart forecast of total replacement tire sales, 2011-21
- Most consumers don’t think about their tires until there is an issue
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- Figure 2: Attitudes toward tires, by gender, August 2016
- Online tire sales minimal compared to brick and mortar retail
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- Figure 3: Tire purchase location, August 2016
- The opportunities
- Consumers see value in professional tire installation
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- Figure 4: Attitudes toward tires, by household income, August 2016
- Few consumers opt for the cheapest option available
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- Figure 5: Tire maintenance behavior, August 2016
- Women are more open to multiple brands for their next tire purchase
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- Figure 6: Tire brand consideration, by gender, August 2016
- What it means
The Market – What You Need to Know
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- Tire marketplace is extremely crowded and competitive
- Independent tire retailers dominate US market
- Passenger replacement tire sales forecasted to drop
Market Size and Forecast
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- Sales revenue expected to deflate down the road
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- Figure 7: Total US sales and fan chart forecast of total replacement tire sales, at current prices, 2011-21
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- Figure 8: Total US retail sales and forecast of replacement tires, at current prices, 2011-21
Market Breakdown
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- Passenger car tire sales drop while light truck tire sales stagnate
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- Figure 9: Sales of replacement tire sales, by segment, at current prices, 2011-21
- Independent dealers remain main location for tire purchases
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- Figure 10: Total US retail sales of replacement tires, by channel, 2015
Market Factors
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- Low gas prices spur sales
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- Figure 11: All grades all formulations retail gasoline prices, dollars per gallon, January 2007-September 2016
- Rise in miles driven increases tire usage
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- Figure 12: US miles traveled, all roads and streets, 1990-2015
Key Players – What You Need to Know
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- Goodyear is the leading brand in US
- Bridgestone Corporation leads US in tire sales
Manufacturer Sales of Replacement Tires
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- Manufacturer sales of replacement tires
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- Figure 13: Unit sales of U.S. replacement passenger and truck tires, by manufacturer brand, 2015
What’s Working?
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- Flagship tire brands sustain strong brand recognition
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- Figure 14: Goodyear online advertisement, October 2016
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- Figure 15: Michelin online advertisement, March 2016
- Figure 16: Firestone online advertisement, May 2016
What’s Struggling?
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- Smaller, lesser-known brands struggle in a crowded marketplace
What’s Next?
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- Airless tires may find their way into commercial markets soon
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- Figure 17: Bridgestone air free concept tire, November 2013
The Consumer – What You Need to Know
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- Online tire sales minimal
- Discount Tire attracts older consumers, Walmart attracts Millennials
- Consumers don’t think about their tires
- Consumers find value in professional installation
Most Recent Tire Purchase
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- Majority of consumers purchased tires within two years ago
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- Figure 18: Most recent tire purchase, august 2016
- Women less likely to make tire purchases then men
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- Figure 19: Most recent tire purchase, by gender, august 2016
Tire Purchase Location
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- Discount Tire attracts a solid following
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- Figure 20: Tire purchase location, august 2016
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- Figure 21: Tire purchase location, by age, august 2016
- Online tire retailing lags behind brick and mortar sales
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- Figure 22: Tire purchase location, august 2016
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- Figure 23: Discount Tire email campaign, April 2016
- Millennials more likely to purchase tires at Walmart
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- Figure 24: Tire purchase location, by generation, august 2016
Tire Maintenance Behavior
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- General tire maintenance behavior is reactive not proactive
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- Figure 25: tire maintenance behavior, august 2016
- Millennials most likely to change their own tires
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- Figure 26: tire maintenance behavior, by generation, august 2016
- Northeast main consumers of seasonal tires
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- Figure 27: tire maintenance behavior, by geographic area, august 2016
- Online researchers more proactive and willing to pay more
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- Figure 28: Tire maintenance behavior – CHAID – Tree output, August 2016
- Figure 29: Tire maintenance behavior, by online tire researchers, August 2016
Tire Brands
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- Over a quarter of consumers know tire brand for next purchase
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- Figure 30: Tire brands, August 2016
- Men more sure what tire brand they will purchase
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- Figure 31: Tire brands, by gender, August 2016
- Hispanics most likely to have specific tire brand in mind
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- Figure 32: Tire brands, by race and hispanic origin, August 2016
Price Sensitivity Analysis
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- Tires price sensitivity analysis
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- Figure 33: Complete set of tires and installation – optimal price, July 2016
Attitudes toward Tires
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- Consumers find value in professional tire installation
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- Figure 34: Attitudes toward tires, august 2016
- Women more likely than men to ignore tires until an issue arises
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- Figure 35: Attitudes toward tires, by gender, august 2016
- Younger age groups less reliant on mainstream brands
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- Figure 36: Attitudes toward tires, by gender and age, august 2016
- Run-flat tires appealing to younger demographics
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- Figure 37: Attitudes toward tires, by age, august 2016
- Lesser known brands should target parents
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- Figure 38: Attitudes toward tires, by parental status, august 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Terms
Appendix – Market
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- Figure 39: Total US retail sales and forecast of replacement tires, at inflation-adjusted prices, 2011-21
- Figure 40: Unit sales of US replacement passenger and truck tires, by manufacturer brand, 2015
- Figure 41: Total US retail sales of replacement tires, by segment, at current prices, 2014 and 2016
- Figure 42: Total US retail sales of replacement tires, by channel at current prices, 2013 and 2015
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Appendix – Consumer
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- CHAID Analysis Methodology
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- Figure 43: Tire maintenance behavior – CHAID – Table output, August 2016
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