Sheridan College Marketing 1010: Michelin Tires Promotion Plan Report

This report details a comprehensive marketing promotion plan developed for Michelin Tires, focusing on the Canadian market. The analysis begins with an executive summary and table of contents, followed by a situational analysis examining the Canadian tire market and Michelin's product offerings, target market, positioning, pricing, distribution, advertising, and promotional activities. A SWOT analysis identifies the brand's strengths, weaknesses, opportunities, and threats. The report then explores Michelin's competitive advantage and proposes target market strategies, positioning, and communication objectives. Creative objectives are established, and promotional recommendations are made, including social media and consumer sales promotions. The report outlines a proposed media execution plan and budget, along with the methods used for the promotional plan, exhibits, and references.

Running head: MARKETING
Marketing
Name of student
Name of University
Author note

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Executive summary
The Report was designed to present the promotional plan for Michelin Tires in
Australia. The Canadian market was first analysed and based on that, the promotional plan
was developed with the assessment of product, price, place and promotions managed by the
company and also how it allowed the company to target the specific market segments quite
comprehensively. The promotional plan was integrated with the help of social media
promotions and also by using consumer sales promotions and various other digital platforms
for create awareness among people, establish brand equity and positive image too.

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Table of Contents
Situational analysis.....................................................................................................................4
SWOT analysis...........................................................................................................................5
Competitive advantage...............................................................................................................6
Target market, positioning and strategies..................................................................................6
Creative objectives.....................................................................................................................7
Promotional recommendations...................................................................................................8
Proposed Media Execution & Overall Budget...........................................................................9
Methods for promotional plan....................................................................................................9
Exhibits....................................................................................................................................10
References................................................................................................................................10

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Situational analysis
a) Canadian market
The Canadian tire market comprises of over $4.9 billion, as recorded in the year 2018
and has been growing at a CAGR of 4.9 percent, high ensures reaching a target of over $6.5
billion by the end of the year 2024. The increased rate of industrialisation and management of
online sales within the tire industry have further benefited the companies to increase retail
sales annually (Michelin.ca, 2020).
b) Analysis of brand
i) Product
The products of Michelin Tires include tyres for passenger cars. SUVs and also customised
tyres. The company also extends its product range by producing Pilot tyres, Latitude line of
tyres, Energy line of tyres and broadened the product range by adding tyres for bikes as well
(Michelin.ca, 2020).
ii) Current Target Market
The target market comprise of customers, especially more male dominated and the racers,
drivers and truck drivers and truck owners too.
iii) Positioning
The company positions itself competitively so as to gain greater outreach to different market
segments and fulfil the varied needs of people much more comprehensively.
iv) Pricing
Because of the focus on quality and long lasting performance, the competitive pricing has
been used by Michelin, which also vary on the basis of exchange market globally. The prices

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of tyres are set according to the quality, which ensures longevity while the tyres for trucks
have higher prices when compared to the tyres of cars (Ben Slimane & Chaney, 2015).
v) Distribution
Not only in Canada, but also the company operates globally and has made the tires available
online as well as in retail shops. The warehouses stock the tires, which make it easy for
distribution.
vi) Advertising
The advertising and promotions have been done by promoting he brand on televisions,
newspapers, magazines, internet websites and banners. The promotions at Moto GP and
Formula 1 along with online promotions via social networks have also promoted the brand
largely (Giardino-Karlinger, 2014).
vii) Promotion / Social Media
The promotions have been done via social networks and also with the help of promotions in
newspapers, televisions, radios and at the internet website managed by the company
(Michelin.ca, 2020).
The competitors are Yokohama tyres, Bridgestone, Cooper Tires, Continental, etc.
SWOT analysis
a) Brand Strengths
 One of the largest manufacturers of tyres
 Worldwide presence ad good financial condition
 Diverse portfolio, which helps in meeting needs of market segments effectively
 Positive brand image and equity along with competent research and development
activities (Hardy, 2017)

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b) Brand Weaknesses
 High competition within the tyre industry
 The financial position has been excessively leveraged
 Poorly skilled workforce
 Lack of innovation consistently
c) Market Opportunities
 Creating awareness about wide range of other tires could extend sales
 Improvement in logistics and distribution could raise supplies
 Emerging economies could help in entering potential markets (Michelin.ca, 2020).
d) Market Threats
 High priced raw materials
 Huge competition due to presence new entrants and substitutes
 Changes in rates of exchange
 Government policies and laws exert high pressure too (Paradiso, 2017).
Competitive advantage
The excellent brand image, brand equity and diverse portfolio of products have made
the company easily reach more market segments and enhance sales revenue largely. The good
research and development activities and global presence are also considered as major aspects
that have contributed to the smooth business functioning and allowed the company to attain
competitive advantage (Sinha & Verma, 2017).
Target market, positioning and strategies
a) Proposed Target Market

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The male dominated market segment comprising of customers have been the main
target market. The owners of vehicles, trucks and those who are involved in racing activities
and games have been the target of the tire manufacturing company.
b) Proposed Positioning
The demographic as well as geographic positioning have been considered so as to
analyse the different behaviours of customers in different market segments based on the cars
they possess while at the same time, ensure distribution of products in Canada as well as in
other nations (Michelin.ca, 2020).
c) Proposed Communications & Behavioural Objectives
The communications have been managed via personal selling, sending emails and also
by interacting with customers through social media platforms. The behavioural objectives are
to facilitate relationship between the brand an customers, which has been possible by
providing 24*7 assistance and by responding to their queries properly, thereby, created trust
and loyalty among the clients.
d) Proposed Promotion Strategies
The social media promotional strategy and personal selling strategies are followed to promote
the brand and its products (Juska, 2017).
Creative objectives
Proposed Creative Objective:
 To determine the marketing promotion activities and how those have been managed
by Michelin Tires to reach out to audiences worldwide.
Proposed Creative Strategy:

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b) Big Idea
To determine the impact of social media promotions on the raise of brand awareness among
the customers
c) Key Consumer Benefits
To determine the demands in the market and ensure delivering services timely and effectively
d) Support for Consumer Benefits
Additional points and discounts are offered so that they could be benefited while making next
purchase.
e) Personality
Polite, customer oriented and focused on shared vision, mission and goals properly.
Promotional recommendations
 The consumer sales promotions could be facilitated through public relations and also
by providing hem additional offers and discounts.
 It is also recommended for Michelin Tire to promote sales and enhance brand
awareness and image among the clients.
 To facilitate public relations, advertisements on newspapers and also sending those
emails and messages to keep the updated about the products and services would be
relevant.
 The social media promotions via Facebook is recommended to analyse the comments
and posts made by customers, respond to those and ensure customers’ services
delivery too.

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Proposed Media Execution & Overall Budget
Methods for promotional plan
The positivism research philosophy, descriptive research design and primary data
collection consisting of both qualitative and quantitative data would be essential here. The
data collection would be possible via survey process, interview techniques and also with the
help of assessing secondary data sources to acquire secondary data and information required
to achieve the promotion objectives for the concerned research (Sajid, 2016).

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Exhibits

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References
Ben Slimane, K., & Chaney, D. (2015). Towards marketing of functionality: insights from
Michelin and Hilti. Journal of Strategic Marketing, 23(3), 224-237.
Giardino-Karlinger, L. (2014). Quantity Discounts and Market Power: The Michelin Case
Revisited. In The Analysis Of Competition Policy And Sectoral Regulation (pp. 213-
230).
Hardy, J. (2017). Commentary: Branded Content and Media-Marketing Convergence. The
Political Economy of Communication, 5(1).
Juska, J. M. (2017). Integrated marketing communication: advertising and promotion in a
digital world. Routledge.
Michelin.ca. (2020). Retrieved 2 April 2020, from https://www.michelin.ca/
Paradiso, M. (2017). E-commerce and digital marketing in China Pirelli case study
(Bachelor's thesis, Università Ca'Foscari Venezia).
Sajid, S. I. (2016). Social media and its role in marketing.
Sinha, S. K., & Verma, P. (2017). Consumer's Response towards Non-Monetary and
Monetary Sales Promotion: A Review and Future Research Directions. International
Journal of Economic Perspectives, 11(2).