PENETRATING INTO QATAR TYRE MARKET WITH

GAJAH TUNGGAL TBK./GT RADIAL INDONESIA

TIRES PRODUCT

Final Exam Marketing Management MM5003

Ferdian Farouq F BLEMBA Doha Class 2015/2016

Market Focus: Qatar Imported Product

Rubber tires with 6%

growth annually,
estimated current
market volume is US$
150 M
 Opportunity in Qatar Tire market
• According to TechSci Research report, " the tire market in
Qatar is forecast to grow at a CAGR of about 6% during E as ier bus ines s
2014-19 permit to obtain
• According to a TechSci Research report, the commercial c ompare to food
vehicle market in Qatar is forecast to grow at a CAGR of and beverage
more than 13% during 2015-20 regulation
• The Qatar tire market is a largely replacement and import B us ines s c an be
driven market es tablis hed with
• Harsh climatic conditions generally reduce the shell life of exis ting small
tires in Qatar to about one and a half year. medium enterpris e
• New construction activities and ongoing infrastructure projects in the market
due to upcoming FIFA World Cup 2022 are expected to
strongly boost the sales of passenger, commercial and OTR
tires in
• The market share of Chinese tires in the country's tire market
is likely to decline in the coming years due to launch of robust
technology and high quality tires by flagship tire brands to
improve lifecycle
Indonesian High Value Product
Looking to market a top brand Indonesian product which convert
our national strong content into final product involving industrial
high technology adding value process.
R aw P roduc t Intermediate F inal P roduc t
P roduc t
Agricultures Steel Ingot Furniture
Minerals ore Rubber sheet Car
Woods Paper Pulp Electronics
Coal Garment fabric Foods
Crude Oil and LNG Plywood
R ubber
Advantages: Tire
• Consumes natural latex as main product feed (Karet Alam)
• Maximum adding value process
• Involving high technology of Indonesian industry
So Let’s Market Indonesian GT Radial to Qatar
Marketing Plan Objective
• Satisfy the customer with valuable
product
• Match product application with
demand
• Discover opportunity in target
market
• Create cost effective chain supply
• Maximize product turnover

We must be able to translate

the marketing objective into
nine core elements of new
wave marketing
1. Strategy Formulation

C om m unitizatio
n C onfirmatio
n TACTIC EXECUTION
C larific ation
S T R AT E G
Y
C ommunitization
To identify variety of car
brand against the estimated C onfirmation
population To define the car brand and
types which is the most
C larific ation suitable for our tire product
To describe tire product position in
terms of quality against price
relative to other brand
1.1 Strategy (Communitization)

Ferrari Porsche
Lamborghini Jeep BMW
GMC Mercedes
Cadillac Audi
Volvo Lexus
P Range rover
Infiniti
R Jaguar
Volkswagen
I Ford
Hummer Toyota
C Skoda Chevrolet
Mazda Nissan
E Seat Renault Mitsubishi
Mini Cooper
Honda
Fiat KIA
Suzuki Hyundai
Peugeot Daihatsu
Citroen

P OP UL AT ION
 1.1 Strategy (Communitization)

• This exercise is used to map of car brand variety grouping vs

population in Qatar.
• If we relate car brand with its general pricing then we can
see of car price grouping vs population.
• Here we will really look at the customer car choice equivalent
to power of purchasing car related product, including car tire
• i.e. if car owner choose high price car so the will not mind to
choose relatively the same price level for car component in
maintenance time, and the lower car price owner will choose
low price component for maintenance
 1.2 Strategy (Clarification)
GT Radial very confidence with
T product quality comparably same
i level with some Japanese brand
r (Bridgestone, Yokohama, Toyo)
e
Q
U
A
L In the same time the product
I price is very competitive with
T some Korean brand (Hankook,
Y Kumho)
Goldstar Tire
Comforser

Tire PRICE
1.3 Strategy (Confirmation)

Ferrari Porsche
Lamborghini Jeep BMW
GMC Mercedes
Cadillac Audi
Volvo Lexus
P Range rover
Infiniti
R Jaguar
Volkswagen
I Ford
Hummer Toyota
C Skoda Chevrolet
Mazda Nissan
E Seat Renault Mitsubishi
Mini Cooper
KIA Honda
Fiat
Suzuki Hyundai
Peugeot Daihatsu Defined produc t
Citroen pos ition in market

P OP UL AT ION
1.3 Strategy (Confirmation)

Product will fulfill the requirement of individual customer who are

• Value focus
• Price sensitive

Toyota Nis s an Mits ubis Honda Hyundai KIA

hi
Prado Pathfinder Pajero Pilot Santa Fe Sorento Value
Fortuner X-trail Outlander CRV Tucson Sportage focus
Camry Accord
Price
Corolla Altima Galant Civic Elantra Optima sensitive
Yaris Sentra Lancer City Accent
Tidaa
Sunny
The total population of those above mention car brand, account around
30%. Worth market volume to start the business.
 1.3 Strategy (Confirmation)

• The Japan and Korean car brand most likely to have similar tire sizing for
the relatively same car class.
• i.e Corolla/Altima/Civic/Lancer/Elantra/Optima use minimum variation
of tire size
• The customer value focus will likely interested to buy the tire with
moderate price as long as in long term it can give better total value
• The price sensitive customer will likely to buy competitive price tire with
better quality than chinese brand car. These customer still thinking safety
is still more important than price.
 2. Tactic Formulation
Here GT Radial will show that it can
follow the ECO trend. It can produce tire
contributes to better fuel efficiency

S T R AT E GY E XE C UT ION
CODIF IC AT IO
N
GT Radial always ensure
customer receive
MAR KE T IN
G MIX excellent product quality
COMME R C
GT Radial willing to IAL ITAT IO CUR R E NC and driving experience
deliver maximum N Y
value by dealing CONVE R
Communicate the
S AT ION
with 2 type of value to customer
business. Those are and get feedback
B2C and B2B TAC T IC
customers.
2.1Tactic (Codification)
INTRODUCING

ECO
T YR E
PRODUCT LINE

GR E AT E R FUE L
• Excellent grip produced • New design internal liner
E F F IC IE NC Y
by new silica compound resulting in longer pressure
for better friction holding to improve
coefficient mechanical rolling efficiency
2.2 Tactic (Currency)
In legacy marketing, price is vertically set by company, whereas in new wave marketing,
currency depends on value. Therefore GT Radial always ensure that customer will
receive maximum value from tire purchased.
2.3 Tactic (Commercialization) B2C
Customer research:
My experience and observation to some colleagues indicated that it is not easy to
find suitable tires for their car and they had no idea about price. Some friends
because of had no idea about purchasing tire ended with buying tires double price
with what price actually they can use. He bought high profile brand, in which it can
be changed with lower profile tire brand which ultimately can safe him good
amount of money. In it is times four

Solution : Effective communication to customer about product target value, price, and
availability. Put advertisement in following media: Internet, road ad, newspaper
GT Radial Champiro Eco
For Corolla, Civic, Lancer Altima
Price QR 450
Dealer: Mughalina, Bin Omran, Bin
Mahmoud, Abu Hamour
Contact: 44345618
 2.3 Tactic (Commercialization) B2B
Company will do commercialization of product toward B2B company as service
provider. Potential customers are transportation service company i.e. TAXI, car
rental company and project/general works construction company.
Company should be able to fulfill customers business needs related to tire
maintenance as follows:
1. Minimum operational cost caused by tire maintenance
2. Maximum availability of operational vehicle

B US INE S S ADVANTAGE :
GT Radial will have accurate information about the
company demand in terms of tire size and variety of
all the vehicles. This will contribute to more efficient
supply chain, and market captive.
2.4 Tactic (Conversation)

In this Internet era, we can use soc ial

media in produc t advoc ac y as
well as getting feedbac k. GT
radial will prefer to gain
endors em ent from good social
media prominent profile which expert
in the automotive.
 3. Execution Formulation

C OL L AB OR AT ION With
STRATEGY TACTIC Retailer
• Sales
In C ollaboration, company will • Chain supply
form strategic partnership with • Maintenance Center
retailer covering three scope of C AR E
important marketing area. Road assistance program

In C are, company will extra C HAR AC T E R

value with road assistance Customer high value brand
program
In C harac ter, our main goal is GT E XE C UT ION
radial brand recognized as high
value brand
 3.1 Execution (Collaboration in sales)

We will treat our retailer as marketing sales partner with continuous

adding value to each other through effective communication for
aiming high sales growth

Company Roles: Retailer Roles:

1. Manufacture good product
2. Ensure maximum availability
in the retailer shop
3. Create advertisement for
product communication to
customer
4. Provide good incentive for
agreed targeted sales
scheme
1. Educate customer about GT
Radial product
High 2. Prioritize GT radial product
Sales sales than other
3. Received good incentive
provided sales target achieved
 3.1 Execution (Collaboration in chain supply)

F ac tory
S HIP ME NT

S AL E S
DATA R etailer
F ollowing roles are expec ted from retailers :
• Provide statistic customer sales for all brand to company. This information is used to
optimize volumetric shipment by providing detail estimation about each tire series
demand within time interval. Internet connection should allow excellent information transfer
• Retailer also must provide some space for GT radial tire product, and the information of
stock condition can be exchange with the other retailer to always meet c us tomer
demand
• This information exchange program also aim to minimize los t due to expired tire .
Because local regulation demand that car tire maximum lifetime is 2 years.
 3.1 Execution (Collaboration in service)

As described before, GT radial company will transform the product to become service
in some extent. It will provide tire maintenance service to transportation company. To
make this happen, GT radial will use tire shop also as maintenance center for B2B
customer.
B US INE S S ADVANTAGE S :
• Taxis don’t have to go to car pool
garage located outside the city for
doing tire maintenance. This will
maximize c ar operational
availability
• Taxis will receive periodical
maintenance on tire instead of direct
replacement. This aimed to maximize
tire lifetime furthermore it will reduc e
operational c os t
 3.3 Execution (Care)

R oad as s is tanc e program

We never know when our tire burst. Get it for free..
Again this is for pric e sens itive c us tomer who usually don’t want to pay road
assistance insurance. This will take very low c os t but high value for price
sensitive customer, a privilege that they never willing to pay but now they will get it
for free.
B UY 4 S E T TYR E
GE T FR E E R OAD
AS S IS TANC E !!
3.3 Execution (Character)
With all of marketing activity established, GT radial aim
to be recognized as Highes t Value B rand by
customer

GR E AT FUE L E C ONOMY
GR E AT E F F IC IE NC Y
S E R VIC E
GR E AT C US T OME R C AR E
GR E AT S HOP AC C E S S
GR E AT C OMMUNIC AT ION

W IT H A GR E AT
P R IC E
Summary of customized New Wave Marketing
Formulation
 Low Cost High Impact Summary
In STRATEGY
L ow C os t High Impac t

S Communitization GT radial target only limited car Big size of potential share
T brand with limited car type which market which can be
R most likely to have similar tire converted to profit.
A Clarification sizing for the relatively same car
T class
E
Confirmation
G
Y
Low Cost High Impact Summary
in TACTIC
L ow C os t High Impac t
Codification Same tire price Improved fuel efficiency
manufactured by
better technology
and material
T
Currency Good price of tire Improved fuel efficiency
A Comfortable driving
C Better tire grip performance
T Conversation Very low to low Can reach a lot of customer
advertising cost Getting advocacy endorsement from
I compare to social media star who have huge
C conventional media follower
Commercialization Direct ad to B2C and Give accurate information to retail
maintenance service customer. Get accurate tire need
to B2B customer accurately and good captive market
Low Cost High Impact Summary
In EXECUTION
L ow C os t High Impac t

Collaboration Retailer reward Retailer will prioritize in selling tire of

In Sales program. Incentive GT radial brand compare to other
E for agreed scheme
X Collaboration Retailer will provide Eliminate the warehouse rental cost if
E In Supply chain some space for tire we operate by centralizing the
inventory and sales inventory by our own. With sales data
C data to maximize volumetric tire shipment.
U Collaboration Act as maintenance GT radial company does not need to
T In Service center for taxi all create tire maintenance center with
area in the city high capex.
I
Care Give free road Maximize product sales and turnover.
O assistance Reward for 4 tire set purchase only
N Character Combination of low Great branding.
cost activity
Financial Outlook Highlight
The GT radial company marketing strategy when implemented
will likely to operate in following financial condition:
• Minimum initial CAPEX
• Optimum OPEX
• Maximum product sales turnover
• Optimum product sales margin

C ONC L US ION:
I have strong c onfident if all the marketing s trategy work as per plan,
GT R adial will be able to take c ertain pos ition within Qatar tire market.
Als o, the bus ines s growth will at leas t follow the growth of tire and
automobile market. 6-10% per year until 2025.