Marketing: The Michelin Case
Autor: Bastien Nicora • June 21, 2017 • Case Study • 1,878 Words (8 Pages) • 653 Views
Alexandra Pensec For the 3rd of March
André Raoul
Lu Meiyan
Mingjian Li
Jean-Eudes Paulin
Marketing: The Michelin case
Introduction
In the Class of Marketing, we had a case study to learn by doing. About Michelin, the case treats of the way to launch a new tire on different markets. One market is more B2B and the second concerns B2B2C.
In the lines below we tried to explain through the different questions, the particularities and the differences of the market for Michelin, which ones seem to be the most important and the most strategic. After explaining with numbers the real value created from Michelin’s tires, we will discuss about the options proposed by the case, and we will explain which option we would have chosen depending on our vision of the strategy.
To what extent do the OE and RT markets differ?
Carmakers are interested in the advances low fuel consumption technologies, which is a Michelin specialty with the Energy range. On the other hand, RT market is the only profitable market. Here is a table that sums up the differences we can find between the two markets:
| OE Market | RT Market |
Type | B2B | B2B2C and B2C |
Volume | 89 million | 245 million |
Manufacturers’ sales | 2.65 billion | 10 billion euros |
Customer requirement | Strong constraint on: product, performance, quality, delivery time, price. The major expectation are : Comfort / Grip on dry ground / Energy efficiency | The major expectation are : Grip on wet ground / Wear / Reliability |
Market characteristics | _Follow driving trends _Tax on emission _Minimum standard "good enough" | _infrequent purchase of tire : 3 years _Always sold with services _Safety issue matters _Difficulty for the end user to calculate the ROI |
Customer attitude | Price pressure and though negotiation. But also collaboration to improve car's performance | Sensitivity to : Price, Quality, Opinion leader and Loyalty |
Price related | Hard for carmakers to know the cost of a tire | Customers underestimate the price of tires Tires are more expensive because of the manufacturing costs and the compensation. |
Table 1 : Comparison of the OE market and the RT market
...