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BUSINESS CHALLENGE

A tire manufacturer in the Eastern Europe was planning to expand its presence in the European Union and North American tire aftermarket for passenger cars and commercial vehicles. The client requested the MnM team to study the market sizing of these targeted markets with respect to top tire sizes, brands, and their market shares. The study also involved country-level pricing analysis by tire brand and size. The data was analyzed from 2008 to 2015 for historic trends and 2016 to 2022 for future trend mapping.

MnM APPROACH

Model-wise sales analysis for all vehicle types across varied regions was studied to understand the OE-recommended tire sizes and tire brands. It was later mapped with year-wise model sales, which further led to the estimation of the tire market. The same data was then linked with vehicle parc, wherein the brand-wise & tire size-wise market shares were calculated. The influence of factors such as regional parc trends, tire replacement life, average miles driven per vehicle per country, and tire technologies was determined by referring to secondary sources, followed by confirmation from industry experts. The market share of tire brands in each country for each vehicle type was estimated and approved by key industry experts.

VALUE DELIVERED

• MnM was able to provide its client with an in-depth understanding of the market segmentation, identify potential market for its product at regional level, and offer information on competitive landscape.
• The strategic recommendations were used by the client to formulate a go-to-market strategy for different regions.
• Price mix analysis helped the client decide on its pricing strategy for various solutions.
• This study also helped the client invest into tire size-wise vehicle segments and also offer competitive technologies.