Pirelli Marketing

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    Andrea Cristiano nmatricola

    Alice Porchera nmatricola 18502

    Andrea Re Calegari nmatricola 18828

    Riccardo Stiglich nmatricola 18460

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    PIRELLI TYRE

    1. INTRODUCTION

    Founded in 1872, Pirelli is the worlds fifth largest tyre manufacturer based on

    revenues. With a presence in over 160 countries, the company now has 22 tyre

    manufacturing facilities on five continents and employs over 37,000 people.

    Pirelli is one of the leading manufacturers of high-end and performance tyre,

    and is striving to become the world leader in this segment by 2015. The

    company has always had a keen focus on research and development, investing

    around 3% of revenues each year in this area: one of the highest levels of

    research investment in the tyre industry.

    Having been involved in motor racing since 1907, Pirelli is currently the single

    tyre manufacturer for Formula 1 for the 2011-2013 championship seasons and

    for the World Superbike Championship.

    The Pirelli Tyre Group activities are splitted into two business units,

    consumer e industrial.

    The consumer business includes tyre which will be used by private users such

    as cars, SUV, van and motorcycles, while on the other hand, the industrial

    business comprehends tyre aimed to professional transport vehicles (buses,

    trucks, shovels and tractors) and the Steelcord production which is the basic

    straightening component for the creation of radial tyre.

    In the car tyre sector, Pirelli offers a range of products for cars and SUVs,

    focussing on high an ultra-high performance products that aim to combine a

    notable level of stability and safety in all driving conditions with elevated grip

    and road holding even at high speeds. This type of tyre is particularly suitable

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    for powerful, high performance cars, the qualities of which they are designed to

    exalt.

    Within its ranges of tyre for industrial vehicles, Pirelli Tyre has progressively

    reinforced its commitment to the markets in developing countries characterized

    by a growing demand - investing in production capacity in countries such as

    Brazil, in the Middle East and in China - and has increasingly focussed on the

    production of tyre with a higher technological content.

    Pirelli is synonymous of innovation in communication, too. For Pirelli,

    communicating is seeking new ways and new language to create tools to

    transmit a way of being.

    2. PIRELLI TYRES

    Tyre Function

    Over one hundred years experience of tyre technology has enabled Pirelli to

    combine in their products maximum levels of security, longevity, comfort and

    attention to the environment. Each Pirelli tyre provides not only performance but

    also a "feel for the road" and communication with the driver, allowing a better

    understanding of the vehicle's performance.

    We recommend this section if you want to become familiar with the world of car

    tyre.

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    Tyre Service Description

    In addition to the Tyre Size Designation a tyre may be identified by a Service

    Description consisting of a Load Index (or two in the case of single/dual

    fitment) and a Speed Symbol.

    The Load Index is a numerical code associated with the maximum load a tyre

    can carry (except for loads at speeds above 210km/h) at a speed indicated by

    its Speed Symbol under service conditions specified by the tyre manufacturer.

    Tyre Markings

    In addition to the tyre size and the service description, on the tyre sidewall there

    are several different inscriptions: lets have a look at some of them.

    Brand and Product Name

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    Side Indication

    For all asymmetric products it is important to fit the tyre on the rim in the correct

    position. In fact asymmetric tread pattern designs are developed to offer the

    best performance considering the different behaviours of the external and

    internal areas of the tread design.

    DOT Safety Standard Codes

    DOT (Department Of Transportation) is a legal marking required in many

    countries in order to sell the tyres. DOT means the tyres meet or exceed the

    Department of Transportations safety standards.

    1. Means tyre meets or exceeds Department of Transportation safety standards

    2. Manufacturer and Plant Code Number (Assigned by DOT)

    Tyre Size Code Number

    Group of Optional Symbols for the Manufacturer (to identify the brand or other

    significant characteristics of the tyre, for example date of manufacture)

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    Pirelli is the official supplier of tires for F1 with two types of tyres :

    SLICK TYRE (SUPERSOFT, SOFT, MEDIUM, HARD)

    Dry weather tyre, known as slicks, are characterized by a tread pattern that is

    devoid of blocks or channels. They come in four compounds: supersoft, soft,

    medium and hard. The different compounds mean that the tyre are well suited

    to a wide variety of circuits, according to the type of asphalt, the number and

    severity of the corners, and the top speed on the straights. This allows the

    teams to make use of an ample range of strategies. For each track, Pirelli in

    accordance with the FIA - nominates the two dry compounds best suited to the

    tracks characteristics and the temperature to be expected.

    WET WEATHER TYRE (INTERMEDIATE, WET)

    Wet weather tyre, characterized by grooves in the tread pattern, are split into

    two types: full wets and intermediates. The full wet tyre can be easily

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    3. WHY IS PIRELLI CONSIDERED A PREMIUM BRAND?

    The "P Lunga" is the distinguishing mark of Pirelli, the element that certainly

    evokes above all the product the one that symbolizes his core business: the

    tyre. The logo created in 1908 has since represented a tradition of

    manufacturing, excellent quality products and service, as well as reliability,

    strength, innovation and concern which are very important characteristics for

    the environment. Through over 100 years of hard work, success and leadership

    the Pirelli brand has consolidated his image of one of the top premium brand in

    the tyre segment.

    The Pirelli Manifesto is to change the driving experience by constantly

    challenging the boundaries of tyre technology, style and sustainability, setting

    trends in communities across the world.

    In order to keep his top-brand image, Pirelli is now focusing on long-term brand-

    building initiatives, such as the Pirelli calendar, the PZero Fashion, the Formula

    One and the most important, producing premium-tyre. All these activities have

    shown to be extremely successful in providing a unique profile to the Brand and

    setting it apart from the competition.

    The Calendar is the icon of Pirelli's communication. A symbol that for fifty years

    not only celebrates the female beauty, but also celebrates an art that is still

    transforming over time. With constantly changing styles and authors, this art

    always manages to express a new aspect of history. Since its creation in 1964,

    thanks to Pirelli UK Limited, the groups British subsidiary, the Calendar has

    continued to mark the passing of time with images by acclaimed photographers

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    of the moment capturing and interpreting contemporary culture and often setting

    new trends.

    The Pirelli brand keeps his image also in the fashion segment. The relationship

    between Pirelli and fashion, which brought about the PZero brand, has its roots

    in the companys history. Since it was first founded, Pirelli has contributed not

    only to industry but also to the history of social mores as well, thanks to a

    continuos research b and innovation of rubber, which was then applied to

    clothing and accessories.

    From raincoats to boots, work clothes to elegant overcoats, Pirelli Confezioni,

    as the garment division was known at the beginning, managed to create a

    relationship between industry and fashion, which quite naturally developed into

    the current project known as PZero Fashion.

    In the world of Tyre Premium brands, Pirelli aims to use the advantage of its

    brand as a driver to favor growth in the Premium segment. According to the

    Interbrand figures, the Pirelli brand is 15% more effective than other brands in

    the choice of tyre purchases mainly because of the consumer's perception of a

    the brand as a Premium one thanks to its sporting, glamorous and prestigious

    image.

    Among the main tyre makers globally (sales of 6.07 billion euro in 2012), Pirelli

    is leader in the high-end segments, producing Premium tyres with high

    technological content.

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    Pirelli distinguishes himself from competitors in the Tyre Industry mainly for two

    reasons. First of all, Pirelli has a growing focus on the Premium segment (with a

    50% of car revenues in 2012 and it is expected to grow to 60% in 2015), which

    is the segment least affected by the economic crisis. Secondly, Pirelli is working

    hard in order to becoming the Global Premium Leader in the consumer

    Business in 2015 (Car and Moto segment, which account for 73% of the Tyre s

    revenues)

    Pirelli already has a share of 14% of the European Premium Market, the largest

    in the world (about 50% of the Global Premium Market) and this is made

    possible because Pirelli is concentrating not only in cutting-edge technologies

    which result from high investments in R&D but also Pirelli is making long-lasting

    partnerships with the major car makers, from Ferrari to Maserati, from

    Lamborghini to Bentley, from Audi to BMW and Mercedes.

    In the years from 2006 and 2012, Pirelli invested 1.5 billion Euros in improving

    the production mix of existing factories: standard tires production has been

    reduced by 13 million pieces, whereas Premium capacity has been constantly

    increased by improving the quality of the existing plants and opening new sites

    in Romania, China and Settimo Torinese in Italy.

    Pirelli is also the Leader in South America, where it operates the Agro Business,

    as well as in Middle East Africa. In Europe, it enjoys a prominent position, and

    in China and Asia Pacific, it aims at expanding its market share in the Radial

    Truck Business.

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    Pirelli is supplying tyre to the Formula One World Championship for a three-

    year period between 2011 and 2013. The FIA (Fdration Internationale de

    l'Automobile), the Teams, represented by FOTA (the Formula One Teams

    Association), and Formula One's organizing body (FOM Formula One

    Management) chose Pirelli as their exclusive supplier, based on the specific

    proposals made to guarantee technical and operational stability to the

    competitors.

    Pirelli's return to Formula 1 also has a firm eye on the future. For this reason,

    research into innovative new tyre developments, in full collaboration with the

    teams, is a vital part of this exciting program.

    Pirelli is continuing to make important investments in corporate

    communications, in order to make the most of the high profile and cutting-edge

    technology that goes hand in hand with supplying Formula 1. This campaign

    principally helps to support Pirelli's increasing profile in emerging markets: Latin

    America, the Middle East and Asia Pacific, which are all areas frequently visited

    by Formula 1.

    The companys involvement in Formula 1 thus represents an important driver in

    terms of adding value to the Pirelli brand and contributing to the company s

    commercial growth, without impacting upon any of its economic or financial

    plans. Indeed, the global visibility guaranteed through extensive media interest

    in Formula 1 provides a unique opportunity for the brand to maximize its return

    on investment.

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    4. DIGITAL MARKETING

    Digital Marketing is a combination of activities which, through the use of digital

    instruments, allow the increasing of marketing campaigns and integrated

    communication by using electronic device, like smartphones, tablets, computers

    and game consoles.

    This is due to the growth of digital technologies and the consequence is the

    change about the communication strategies: on one hand, the passege is from

    a communication one to manyto a communication many to many in whichthe

    actors are on the same level (firms, utents, clients, brand ecc.); on the other

    hand we can talk about a pull communication instead of the old push

    communication(in this case firm speak and the customers hear).

    What about the keys words, Digital Marketing is based on:

    - Multichannelsand so firms can use different type of communication digital

    channel;

    - Relations: this type of new marketing build strong and lasting relations with

    the customers in order to create an open and positive exchange;

    - Hearing: the most important point is begin from the market, understand

    needs and customers behavior and try to satisfy them; this create the

    possibility to customize the demand and offer a different and personalized

    experience for each clients;

    - Integration: each Digital Marketing plan must be integrate with each

    communication channel;

    - Measurement:with Digital activities all is misurable.

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    Digital Marketing refers to all digital activities like Social Network, Blog,

    Newsletter and Web site; in this case we will analyze only Web site activities,

    which are The main contact channelused by digital marketing : all promotion

    and advertising are implemented on web sites in order to engage different type

    of targets.

    The most important thing is create a very well-made website because this

    represent the firm's business card on the net for the users, who want to know

    some firm's informations. Fundamental is maintain a consistent image with the

    mission's company and an integrated corporate communication. During the

    building of a website the most important factors are the following:

    Implementation and design of search engine friendly (attention about

    the choice of content of management system)

    Responsive web design (attention about usability of contents on the

    website from mobile devices).

    Digital Marketing in Pirelli

    About Pirellis Digital Marketing, we will focalize and analyze its web site: first of

    all is the most important contact-channel used in a business like these (tyre

    sector) and at the same time, by taking this decision, we will have the possibility

    to analyze and compare the economic performance of this new digital

    instrument due to the different country in which Pirellis firm operate.

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    Why is the web site used as principal instrument of Digital

    Marketing?

    As many of us know, Pirelli operate in tyre sector, and for this reason its main

    business refers to business-to-business market (in particular supplies for car

    manufacturers): for that the website is, for sure, the principal platform in which

    it's possible find more information about products and knows more about the

    different promotion. Obviously the website refers not only to the automotive-

    seller, but at the same time it can satisfy all customers "needs" in business-to-

    client market. Thanks to the specific characteristics of this instrument, Pirelli can

    manage at the best the canalization about its offer, related to each customer.

    Is the website International?

    Pirelli's website can be visited by most of the people coming from different

    countries, because it was been created in order to reach many different people,

    cultures and countries, and so it's possible choose your native language:

    specifically exist one different version for each single country. While, about the

    country for which the offer is not customize, they can refer to the international

    site and in particular to the area managers of each country; the promotions and

    the font are similar between the different versions, obviously adapted following

    the specific country's characteristics. even if there is not a very personification,

    about the offers and the advertising, based on these specific country

    characteristics; in fact this can create some distortions about the possibility to

    catch the demand opportunities of each different nations.

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    Principal elements of Digital Marketing integrated on the

    website

    The website is very important for the business; in fact it integrate some digital

    functions useful to support all contacts with the business-to-business and

    business-to-customers clients.

    First of all, for sure, we have to explain how is the possible to buy on the

    website, through a category called on-line point of sales: POS allow, to all

    customers, to buy Pirelli's product just through web technology; this let the

    company to sell in every place endowed of a web connection; in this way Pirelli

    can cover the entire territory of the world which use cars or wheeled vehicles.

    Very important is that often this channel allows the customers to acquire

    products with targeted promotions.

    On the other hand, besides on line purchase, the web site propose also some

    offer about point of sales for determinate nations, so that customers can decide

    what selling channel choose for satisfy its needs.

    This is certainly addressed to cover all world demand, for increase traffic on

    nationals point of sales.

    All this technology is divided between Business-to-Business and Business-to-

    Customers, with the related private and dedicated areas, for canalize all the

    information about the characteristics of the reference customers. An example is

    the platform E-learning dedicated in particular for the B2B, in order to maintain

    all the employees and technical always informed and prepared about product's

    new technologies: is a platform specific for the on-line formation, in order to

    equalize and unify the skills of each " Pirelli's Men " all over the world.

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    This are the main characteristics of Pirelli website in terms of international: now

    we will present the questionnaire submit to a little sample of international

    students in order to evaluate the brand perception in each different country.

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    5. QUESTIONNAIRE

    QUESTIONNAIRE ABOUT PIRELLIS DIGITAL MARKETING

    Were analyzing Pirellis digital marketing, and in particular its web site, in order

    to collect some information for evaluating the perception across the different

    country area.

    1stPART- Personal Dates:

    1. Wherere you from?

    ......

    2. How old are you?

    ......

    3. Are you a driver?

    o Yes

    o No

    4. How many times do you spend on the net?

    ....................

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    2ndPART- General knowledge:

    5. Do you know Pirellis brand?

    o Yes

    o No

    (If No, answer only at the first five questions)

    6. Do you know in which sector Pirelli operates?

    o Yes

    o No

    7. How did you hear about Pirelli?

    o Tv advertising

    o Web site

    o Magazine advertising

    o Sport Media

    8. Do you consider Pirelli as a top brand?

    o Yes

    o No

    9. Which is your perception about Pirelli? (1=worse; 9=very good)

    1 2 3 4 5 6 7 8 9

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    10.

    3rdPART- Overall satisfaction:

    11. What is your overall satisfaction rating with Pirelli (responsiveness,

    professionalism, understanding of customer needs)?

    o Very satisfied

    o Somewhat satisfied

    o Neither satisfied nor dissatisfied

    o Somewhat dissatisfied

    o Very dissatisfied

    12. How satisfied are you with the characteristics of Pirellis tyre? (1=very

    dissatisfied; 9=very satisfied)

    Quality

    1 2 3 4 5 6 7 8 9

    Purchase experience

    1 2 3 4 5 6 7 8 9

    Usage/Performance experience

    1 2 3 4 5 6 7 8 9

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    13. What is your overall satisfaction with Pirellis ability to keep you informed

    about any product on the web site?

    o Very satisfied

    o Somewhat satisfied

    o Neither satisfied nor dissatisfied

    o Somewhat dissatisfied

    o Very dissatisfied

    14. Thinking of similar products offered by other companies, how would you

    compare Pirellis product offered to them?

    o Much better

    o Somewhat better

    o About the same

    o Somewhat worse

    o Much worse

    4thPART- Efficacy:

    15. How much are the following characteristics important for you:

    Updated web site

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    1 2 3 4 5 6 7 8 9

    16. Do you think that on Pirelli's website it's possible find all the necessary

    information?

    o Yes

    o No

    17. Which is your general impression about Pirellis web site?

    o Negative

    o Quite positive

    o Positive

    18. What do you think about Pirellis behavior compared with new digital

    technologies?

    o Really good

    o Good

    o Quite good

    o Not really good

    o Not good

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    19. Do you think that the digital technologies increase the brand perception?

    o Yes

    o No

    20. How much do you like the structure of Pirellis web site? (1=dont like;

    9=I really like it)

    1 2 3 4 5 6 7 8 9

    21.

    22. In your opinion, is the Pirelli's website user-friendly?

    o Yes

    o No

    23. Are you persuaded to buy a new product after the website's

    vision?(1=none; 9= very persuaded)

    1 2 3 4 5 6 7 8 9

    24.

    The questionnaire is over. Thanks for your kindness.

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    6. RESULTS

    QUESTIONNAIRE ANALYSIS

    As we said before, we have distributed about 43 questionnaire and now we

    going to analyze the principal results.

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    What we can state is that the Perception of Pirellis brand is good, with an

    average of 7.03 on 9, and this underline and strengthens the data previously

    analyzed.

    To conclude this area of analysis, weve to say how the advertising doesnt

    predominate only in one channel, but it has an homogeneous efficacy on all of

    them (magazines, web, sport media).

    Overall Satisfaction

    About Overall Satisfaction, we have to say how its quietly good respect to the

    three variables (Quality, Purchase experience and Usage experience), with an

    average between 6/7 on 9: this means that the products and the services sells

    by Pirelli are positively perceived, and not only by the sensorialpoint of view,

    but also by an effective purchase and usage experience.

    This results reinforce the general perception underlined in General Knowledge.

    Efficacy

    What the studied sample shown us, is that the importance of principal digitals

    marketing components are between 6 and 7 on 9, and the evaluation about

    Pirellis digital satisfaction is about 5: that means how Pirelli control well digitals

    technologies, and in particular the web site, but also how it can increase

    intrinsic efficacy of this channel, that doesnt respond well to customers

    demand.

    After a general studies and analysis on results of questionnaire, we will deepen

    some peculiarity and we will studied it respect the strategic countries.

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    Final Consideration

    Based on the obtained results, following a first qualitative analysis of the datas,

    in our opinion it will be appropriate that Pirelli will improve the efficacy of its web

    site, particular based on the penetration in each foreign markets. It will be

    opportune to invest and work much more on the purpose of personalize/specific

    offers for the different countries, taken into consideration some factors like

    culture, costumers behavior, religion and other, because every country is

    different from others based on these principal aspect.

    Starting with the positioning, Pirelli would adopt the most suitable strategy as

    Local Customer Culture Positioning: and so evaluate all the critical local factors

    such as local culture, local consumption, local needs and so on.

    We are also supporting the possibility that Pirelli have to try to change from a

    global

    marketing to a Multinational marketing; so switch from a standardize offer for all

    different countries, to an organization which gives much more responsibility to

    all the local subsidiaries: that take the main marketing decisions and create

    specific personalized offer.

    All of this things will improve the perception, and following the sales and the

    range of business around the world; so one choice can be the delocalization of

    the production and the marketing functions of Pirelli in the different geographical

    areas, which are strategic for the company.

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    For sure this could be realize through large investment, but some resources

    could be available thanks to the partnership with F1 for who Pirelli is the only

    supplier of tyre.

    The key of a real success should be an improvement on digital communication.

    7. CONCLUSIONS

    As we said before we strongly recommend Pirelli to increase the efficacy of its

    web site and to do so we think that Pirelli has to invest in differentiating its offer

    within each country. This objective has to be reached setting a new business

    strategy, moving from a Global marketing view that implies standardized plans

    for different environments to an International marketing view which instead

    enables specific and localized plans.

    If Pirelli will succeed in applying this new strategy for sure it will be able to

    satisfy more people and get better economic results.

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    REFERENCES

    http://www.pirelli.com/corporate/en/company/default.html

    http://www.pirelli.com/tyre/it/it/homepage.html

    http://en.wikipedia.org/wiki/Digital_marketing

    http://www.pirelli.com/corporate/en/company/default.htmlhttp://www.pirelli.com/tyre/it/it/homepage.htmlhttp://en.wikipedia.org/wiki/Digital_marketinghttp://en.wikipedia.org/wiki/Digital_marketinghttp://en.wikipedia.org/wiki/Digital_marketinghttp://www.pirelli.com/tyre/it/it/homepage.htmlhttp://www.pirelli.com/corporate/en/company/default.html