Bridgestone Tyres European Marketing Strategy

Topics: European Union, Europe, Spain Pages: 29 (9739 words) Published: November 12, 2012
Bridgestone Tyres: European Marketing Strategy
Daniel Rahman
October 24, 2011
Rhonda Payne

Table of Contents
Title Page…………………………………………………………...1 Table of Contents……………………………………………...........2 1.0 Executive Summary…………………………………………….3 2.0 Problem Statement……………………………………...............3 3.0 Situational Analysis…………………………………………….4 3.1 TOWS Analysis………………………………………………...7 3.2 PEST Analysis…………………………………………….........12 3.3 Solberg’s Nine Strategic Windows……………………………..15 3.4 Porter’s Analysis………………………………………………..16 4.0 Alternatives………………………………………………..........18 5.0 Recommendation……………………………………….............22 6.0 Conclusion……………………………………………………...24 Work Cited………………………………………………………….25 Appendices………………………………………………………….26

Bridgestone Tyres: European Marketing Strategy
1.0 Executive Summary
The European tyre industry is very unique. Primarily dominated by Michelin, there are several other competitors that hold a strong, consistent market share and brand awareness. Bridgestone is not one of these companies; Bridgestone’s current marketing strategies in Europe are not at all effective. Currently, Bridgestone’s market share and brand awareness in Europe rate among the lowest of tyre manufacturers; if Bridgestone would like to continue to hold 20% of the global market share (highest w/ Michelin), they must address this issue promptly. To solve this detrimental issue, I found that the most appropriate course of action for Shoshi Arakawa would be to recommend that Bridgestone opens a retail outlet in select European countries, selling all Bridgestone tyre brands (as illustrated on page 20). This is a fantastic opportunity, as this plan of action will strengthen relationships with European consumers, enable Bridgestone to learn more about the European market, reduce Bridgestone’s dependency on partners, allow Bridgestone to create a competitive advantage over the competition, put Bridgestone in a position to launch innovation or expansion, and overall achieve the goal of achieving a higher market share and brand awareness. To successfully implement this plan of action, Bridgestone must develop a corporate and marketing plan, along with a creative strategy in order to be prepared for this endeavour. As Bridgestone is already one of the largest tyre manufacturers in the world, this addition to their offerings is not overly substantial that it is unfeasible. From these efforts, you will be able to see the benefits by the amount of brand awareness and market share you will have then, in relation to now. Tyre manufacturers marketing and selling directly to consumers has never been done in this industry before, so the competitive advantage that is sought from this is extraordinary. With this position, Bridgestone has a lot of leeway in terms of what positions they want to take in this market in the future. A retail outlet will get Bridgestone noticed in Europe. I would recommend starting this endeavour in Spain, as it is currently Bridgestone’s most stable European market, then work towards the rest of the key markets once Bridgestone has experienced some levels of success through these newly created mediums. Would you like to increase your market share and brand awareness in Europe?

2.0 Problem Statement
What alternative competitive strategies can Bridgestone pursue to strengthen their awareness and increase market share in European markets? 3.0 Situational Analysis
Prelude
Bridgestone Corporation is one of the world’s largest tyre manufacturers. Headquartered in Japan, Bridgestone Corp. has operations in the United States, as well as Europe. In this industry, the nationality of the company is rather important to some consumers; if a consumer drives an Italian sports car (Ferrari, Lamborghini, etc.), they are more likely to have Italian components (Pirelli tyres), just as the car would be furnished with Italian leather; this example also corresponds to German made cars (1/3 of Continental tyres overall sales...

Cited: Automotive Industry. (2010). European Commission: Enterprise and Industry. Retrieved October 15, 2011, from http://ec.europa.eu/enterprise/sectors/automotive/index_en.htm
Economy of the European Union
EU Tax Policy Strategy. (2011). European Commission: Tax and Customs Union. Retrieved October 15, 2011, from http://ec.europa.eu/taxation_customs/taxation/gen_info/tax_policy/index_en.htm
Hollensen, Svend
PEST Analysis. (2011). Mind Tools Ltd. Retrieved October 12, 2011, from http://www.mindtools.com/pages/article/newTMC_09.htm
Porter’s Five Forces
Using the TOWS Matrix. (2011). Mind Tools Ltd. Retrieved October 12, 2011, from http://www.mindtools.com/pages/article/newSTR_89.htm
Appendices
Appendix A: Market Share for Tyres in the World Market, 2008
Manufacturer | Market Share (%) |
Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 155.
Appendix B: Bridgestone’s Market Share for Tyres in the Most Important Markets, 2008
Market Area | Bridgestone Market Share (%) |
Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 155.
Appendix C: The European Tyre Market, 2008
million units | Car Tyres | Truck Tyres | Total |
Appendix D: The Tyre Market in Main European Markets (cars and trucks), 2008
| France | Germany | Italy | Spain | UK | Other Markets | Total |
Appendix E: Sales of Retreaded Tyres in Main European Markets, 2008 (million units)
| France | Germany | Italy | Spain | UK |
Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 157.
Note: Hollensen, Svend. (2011). Global Marketing: A Decision-Oriented Approach. Pearson Education, fifth edition, pp. 159.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Marketing Strategy Essay
  • Bridgestone Marketing Essay
  • Essay about marketing strategy
  • Marketing Strategies Essay
  • Marketing Strategy Essay
  • Essay about event marketing strategy
  • marketing strategy Research Paper
  • Marketing strategy in the tourism industry Essay

Become a StudyMode Member

Sign Up - It's Free