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JK Tyre launches new campaign, ups advertising budget

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JK Tyre launches new campaign, ups advertising budget

JK Tyre has enhanced the advertising and promotion budget to Rs 25 crore from Rs 20 crore in fiscal 2001-02. It has also kicked off a Rs 3-crore launch campaign for its recently introduced eco-friendly coloured tyres.

JK Tyre is also putting a sharper focus on its exclusive tyre network for cars, trucks and tractors. In fiscal 2002-03, the number of outlets under ‘Steel Wheels’, its exclusive network for selling car tyres, is expected to go up to 120 from 95; JK Tyre Showrooms, where truck tyres are sold, would increase to 1,000 outlets up from 800; and the 10-month old network of Key Farm Dealers (KFD) would grow to 125 exclusive dealerships up from 95.

The enhanced A&P budget and an intense focus on exclusive network are intended to support the launch of around 14 new tyres (including half a dozen radically novel ones like the recent coloured tyres for cars) and secure a turnover growth of 15 per cent in an otherwise sluggish tyre market. In the last fiscal, JK Tyre had launched 19 different kinds of tyres, including nine novel ones.

JK Tyre is said to have one of the largest portfolios of tyre sizes in the industry with car tyres in 45 sizes, truck tyres in 20 sizes and tractor tyres in eight sizes.

The 55,000 tyres-a-month Maruti 800-car segment, for instance, would have around five variants and two tyre sizes. With stiff competition among tyre rivals, dealerships often operate on wafer-thin margins.

Source: Financial Express


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