Marketing Plan for the GT RadialExpansion into the EUROPEAN Market

Syndicate 4 – R46ARachmi Rida UtamiRieke Fitri YuniarJoseph EnricoPramadonaYunus Arie WiratamaRafael Binczyk

PT. Gajah Tunggal

Established and

producing bicycle tires

Expanded producing motorcyle

tires

Followed producing bias

tires for passenger & commercial

vehicles

Strated to produce

radial tires for

passenger cars and

light trucks

The Company

operate two production

facilities Tangerang & Serang

They provide as “The Best

Tire in Indonesia”, with brand GT Radial

1951 1971 1981 1990

Business Mission

Vision

To be good corporate citizen with solid financial standing, market leadership in Indonesia and an established global reputation as a manufacturer of quality test.

Mission

To be leading and dependable producer of an optimal range of competitively priced, superior quality tires while also pursuing brand equity and corporate social responsibilities as well as delivering profitability and returns to shareholders and values stakeholders

The MarketT

he M

arke

t Domestic.

International markets:

Australia

United States

Asia

Europe

Export sales network more than 70 distributors, who supply tires in over 90 countries

The company operated 40 Tire zone outlets in 16 cities in Indonesia, under the brand names of GT Radial, Michelin and BF Goodrich

Gajah Tunggal Export Destination

Tire zone Outlets

Product GT Radial

Champiro HPY Champiro HPX

Champiro Eco Savero HT Plus

GT Radial in Europe

Segment Market In Europe

Passenger Car SUV/ Light Truck Tires

Trucks & Bus

Product GT Radial In Europe

• All tyres produced by GT Radial for export to Europe satisfy standards for all the European Union legal directives, regulation and standards

• E-mark Safety & Noise Certification tests, accredited by TUV NORD

• Customized with field conditions in Europe• Designs are varied and suited to the users’ comfort &

safety• Keep innovating to produce high quality tyres

Tagline GT Radial in Europe

Price GT Radial di Europe

• GT Radial product’s price are varied, according to the tyres type

• Price offered much cheaper than the other competitors, such as Bridgestone, Goodyear, Continental, Michelin, Pirelli

GT Radial exist In 6 countries• German• France• UK• Spain• Turkey• Italy

Place GT Radial In Europe

Promotion GT Radial In Europe

• Established a partnership with Michelin.• Collaborating with GT Tire Europe developed a company

web.• Use advertising media.• Participates & sponsor some events.• Organized GT Radial drifts in Germany and sponsored

MPS Racing team from Dulmen.• Launched Motorsport Micro Site covers Motorsport.

SWOT Analysis

Strenghts

•The best tire manufacturers in Indonesia

•Export sales network consists of more than 70 distributors, who supply tires in over 90 countries

•GT Radial are fore front of new technology by helping reduce noise from contact betwen the tyre and the road surface

•Good Quality Product•Echo friendly product•Affordable Price

SWOT Analysis

Weakness

• Only six countries in Europe• Limited authorized

distributors channels• Uneven distribution to all

corners of Europe• GT Radial’s brand still weak

in the minds of European people

SWOT Analysis

Opportunities

• There are still market’s space for GT Radial to market product in Europe

• The tire industry that constantly evolving in accordance with the changing of times and technology

SWOT Analysis

Threats

• There are five big competitors (Michelin, Bridgestone, Continental, Goodyear, and Pirelli) that control the tire’s market (80% of the market)

• European market tend to use brands of their own country

• Decrease in the tire market, due to the impact of the economic crisis weakened the purchasing power

• Most of European people are proud of their products

Challenge for GT Radial in Europe

Challenge for GT

Radial in Europe

How to improve and strengthen

GT Radial brand in Europe?

How to compete with the other

big competitors in The European

tire industry?How to improve

its marketing strategiies in

Europe ?

Suggestion

• Maintain it’s segmentation for passenger car, SUV / Light Truck, Trucks & BusSegmentation

• Develop distribution channel across Europe with colaborating with European transportation companies.

Targeting

• Change the tagline: accelerate your journey to the future, for people who understand quality, drive the world.

Positioning

SuggestionProduct

• Improve the R&D to innovate product• Made design product for European market to meet the European

environmental standard

Price

• GT Radial offering the quality product with competitive price for the middle to low class (people who don’t care about prestige brands like Michelin)

Place

• Open more own house retail outlets “TireZone” in Europe• Establish cooperation with tyre retailers in Europe

Promotion

• Create sponsorship to the event motorcycle racing• Participated in The Tire Expo that always held annually in Europe• Implement the Search Engine Optimization• Improve more attractive company’s web design• Collaborate with car manufacturer