Page 10 - CTB N10 - 2015-02

COMPANY NEWS
Kumho Re-enters the Truck Tyre Market
Until recently, the Kumho brand had been absent from the UK truck and bus tyre market for some time following a tactical and temporary withdrawal from the segment several years ago. Earlier
distribution network. We took the opportunity to ask Steve a few pertinent questions about Kumho’s return to this highly competitive market.
Commercial Tyre Business
Kumho used to be active in the UK truck and bus market a number of years ago, but then stepped out of it. What are the reasons for re-entering the sector?
Steve Miller
The UK truck tyre market is probably the most advanced in Europe in terms of competitiveness, product awareness and performance data gathering. The Kumho brand has been re-introduced with a number of positive product enhancements to meet the fleets’ requirements over the whole product sector. This will allow Kumho to position itself as a reliable alternative to some of the more established manufacturers.
CTB
This has presumably been some time in the planning. What have you done in terms of distribution, personnel etc in order to prepare yourself for the relaunch?
SM
This is an exciting new venture for Kumho. For the first time we are able to provide a direct sales, marketing and distribution facility for our customers, and our strategy is to eventually offer the complete range of managed fleet business that is expected of a large manufacturer within the UK fleet market.
At this stage of our development we are concentrating on building a foundation for our dealers, we have test and evaluation studies on several of our patterns in operation and we are working closely with our partners to ensure the product range complies with the requirements of the fleet operator. Our dealer partners are utilising the Kumho brand within their own managed fleets and we are comparing the results against our competitors.
CTB
What’s the aim for growth over the next 2-3 years?
SM
We first want to establish a firm business foundation with our dealer partners. As confidence in the performance of our product range grows we will look to build upon this and develop our service provision in line with the requirements of the fleet operators, locally, regionally and nationally.
network and work with them to develop our offer.
CTB
What back up services/tools will you be providing to fleets customers?
SM
As we grow our business to the required level, we shall continually integrate and provide the infrastructure to build a successful business which will include a nationwide breakdown service and fully managed package to support the fleet operator.
CTB
Where will the Kumho brand be positioned in the truck sector in terms of price and image?
SM
The Kumho brand is positioned in the mid-range sector whilst offering reliability and performance levels which are arguably above its position. It is competitively priced against other mid-range manufacturers.
CTB
Hankook’s recent success in the UK truck and bus market is well documented, as is the close rivalry between Kumho and its fellow Korean manufacturer over many years. Has Hankook’s success inspired Kumho to try and achieve similar success? How close can Kumho get to what they’ve achieved?
SM
Hankook have followed their business model and have achieved good success in the UK truck tyre market, they have exploited weaknesses and built a good foundation for the brand. We believe every manufacturer, not only Kumho, would like to achieve such success and it is our opinion that the Kumho brand has every opportunity to do so.
CTB
Finally, what can you tell us about the progress of the relaunch and the range of upgraded product now available to UK fleet owners?
Steve Miller
this year, however, the Korean manufacturer announced its return to the UK commercial tyre market with a new sales structure and an improved product range. Heading up the company’s newly- reformed truck tyre department is former Bridgestone commercial vehicle specialist Steve Miller, who brings a wealth of experience to the task of reintroducing the brand to an already crowded sector of the business. Appointed in October 2013, he has spent the last 18 months creating the foundations of an all-new direct
CTB
How are you approaching the targeting of fleet customers? Are there a number of existing fleet customers or fleets who have had trial sets?
SM
KRS 4
CTB
What kind of fleets are you targeting in terms of size/application?
SM
KMA 12
10 Commercial Tyre Business
At this stage of our development we have products placed in a variety of applications with a variety of fleet operators. We currently have no specific fleet targets - as we indicated earlier we are looking to get the brand established with our dealer