Brand loyalty in the South African tyre industry

• Main Author: Stewart, Russel
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2011
• Online Access: http://hdl.handle.net/10948/d1015983

The tyre industry plays an important role in the concept of mobility. Mobility defines the human need for transportation, which has been growing at an accelerated pace since the dawn of the nineteenth century. More importantly, modern mobility cannot be achieved without the use of a pneumatic tyre, a commodity that has become increasingly complex and competitive with countless brands and products available on a global scale. In order to stand out in this competitive market landscape, big brands attempt to build an amount of brand awareness within the market place, while maintaining a balance in creating a demand for their product in pull marketing strategies. While the market place becomes increasingly competitive on a both a global and local level, tyre brands are all trying various tactics in an effort to secure wheel positions on consumer’s vehicles. Within the marketing mix there are various strategies and tactics that can be adopted by tyre brands to secure a share of voice within the mind of the consumer when the need arises for new tyres, however in South Africa, only the established brands have the spending power to employ traditional media space in an effort to communicate with the consumer. It has also become increasingly difficult for established brands to remain dominant within the decision journey of consumers, especially when the retailer has the final contact with the consumer and may be promoting the purchase of a tyre brands that results in higher margins that the brand originally requested by the consumer. The tyre industry plays an important role in the concept of mobility. Mobility defines the human need for transportation, which has been growing at an accelerated pace since the dawn of the nineteenth century. More importantly, modern mobility cannot be achieved without the use of a pneumatic tyre, a commodity that has become increasingly complex and competitive with countless brands and products available on a global scale. In order to stand out in this competitive market landscape, big brands attempt to build an amount of brand awareness within the market place, while maintaining a balance in creating a demand for their product in pull marketing strategies. While the market place becomes increasingly competitive on a both a global and local level, tyre brands are all trying various tactics in an effort to secure wheel positions on consumer’s vehicles. Within the marketing mix there are various strategies and tactics that can be adopted by tyre brands to secure a share of voice within the mind of the consumer when the need arises for new tyres, however in South Africa, only the established brands have the spending power to employ traditional media space in an effort to communicate with the consumer. It has also become increasingly difficult for established brands to remain dominant within the decision journey of consumers, especially when the retailer has the final contact with the consumer and may be promoting the purchase of a tyre brands that results in higher margins that the brand originally requested by the consumer. The questions that remain are; do retailers have a high degree of influence on consumer behaviour or are high levels of brand awareness enough for a brand owner to be assured of a consistent demand on their product? This research aims to validate the interdependence of brand awareness and retailer influence on the consumer decision journey within the South African tyre industry. The research starts by setting the scene within the global and local tyre industry through the use of the Continental Corporation for illustration purposes. Once the scene is set in terms of the industry in which the research is taking place, brand theory is exhaustively discussed providing relevance and context within the tyre industry. Within the discussion of brand equity, the consumer decision journey and touch points are introduced as process and influence before the final purchase is made. With the theory of the tyre industry and branding covered, qualitative fieldwork was undertaken by two researchers at a tyre retail group in Tswane, South Africa. The fieldwork consisted of questionnaires that needed to be completed by consumers who had just concluded their purchase decision and were waiting in the retailer for the work to be concluded on their vehicle. The results of the fieldwork are extensively analysed and discussed upon which conclusions and recommendations for future research are drawn. The sample attained is sufficient for qualitative analysis; however the conclusions need to be read within the context of the sample size and geographical location in which the research was conducted. Further context was provided from the retail store owner who provided expert comment and insight based on experience within the industry and retail environment. The comment was utilised along with the theory to either validate or disprove findings, which formed the basis for recommendations for future research.