CEAT’s 25% media spend goes into sports partnerships: Lakshmi Narayanan B

Founded in 1924 in Italy, CEAT has successfully carved out its niche through effective marketing and advertising campaigns. The Kolkata-based RPG Group acquired CEAT Tyres of India in 1981, marking a pivotal moment in its history. 

Over the past decade, CEAT has achieved significant milestones by fostering strong relationships with cricket, football and other sports worldwide.  It is the strategic timeout partner for the Indian Premier  League (IPL) and Women’s Premier League. 

No surprise that the tyre manufacturer clocked a standalone revenue of Rs 11,890 crore during FY24 and is aiming to achieve Rs 17,000 crore by FY26.

Lakshmi Narayanan B, Chief Marketing Officer of the brand spoke to e4m on the sidelines of the launch of three advanced tyre innovations for its SportDrive range which are capable of handling speeds greater than 300 KMPH with CALM Technology. 

In this exclusive conversation, Lakshmi shares insights on CEAT’s marketing strategies, its evolving media mix, and the potential challenges of the tyre industry.

Excerpts: 

Q: How do you see the tyre industry’s approach to advertising investments evolving?

The tyre industry has traditionally focused on two fundamental areas: investment in traditional media and investment in sports. These pillars will continue to be strong, especially as premium consumers enter the market with SUVs and luxury vehicles gaining traction. However, digital is set to become a key driver of growth, evolving as an essential platform for engagement.

Our campaign, "Beyond the Horizon", is a great example of how the industry can lead the way in consumer connection. Moving forward, tyre brands will not only focus on functional aspects but also work towards building deeper, more meaningful consumer relationships.

Q: Can you share insights into CEAT’s media mix?

Our media mix is evolving each quarter. We remain deeply committed to cricket in India, while internationally, we have strategic investments in football with Torino Football Club in Italy and Bayer Leverkusen in Germany.

Currently, about 20-25% of our total media spend goes into sports partnerships, including our association with Tata IPL. Traditional media still holds the largest share, but we are witnessing a significant incremental shift towards digital and social platforms. In the coming years, we expect digital spending to double, potentially reaching 30-35% of our total investments.

Q: What impact has your IPL investment had on brand growth and ROI? 

Our association with IPL is well known. We have signed a Rs 240-crore deal for the strategic timeout sponsorship, spanning five years. IPL has become a global property, attracting cricket fans from the Middle East, Europe, and the Americas. The brand salience we gain through IPL is immense, strengthening CEAT’s global recognition.

Q: CEAT recently acquired Camso. Are there more acquisitions on the cards? 

Camso, an off-highway tyre company, was acquired from Michelin, and we are in the process of completing the acquisition. Moving forward, our focus is on innovation and global expansion. We aim to strengthen CEAT’s brand presence and drive innovation not just for one market but across the globe. 

Q: What are your expansion plans for the next five years?

Our biggest upcoming expansion is in the United States. While we have taken baby steps, we are yet to launch all categories in this highly competitive market. The US is dynamic and presents significant growth opportunities for us. Successfully navigating this market will be a major milestone for CEAT. 

Q: Given the economic headwinds in advertising, how do you plan to allocate your marketing budget in the next fiscal year? 

We take a balanced approach. While we invest significantly in ATL (above-the-line) advertising, BTL (below-the-line) and retail investments are equally crucial. Our CEAT shoppies—over 500 outlets across India—enhance the consumer experience and remain a priority investment area. Across our product categories, including passenger cars, two-wheelers, and truck-bus radials, we ensure a holistic and balanced marketing strategy. 

Q: CEAT currently holds the third position in India’s market. How soon do you expect to reach the top?

We have ambitious aspirations, but market dynamics are unpredictable. Our leadership strategy is built on two pillars: increasing consumer awareness about our range and driving innovation. CEAT has historically been recognized for its mileage and durability. As consumers experience our latest innovations, such as CrossDrive and SportDrive, we believe our journey toward market leadership will accelerate.

Q: What challenges do you foresee for the industry?

The biggest challenge is consumer involvement. Tyres are a critical component, yet often overlooked. Enthusiasts understand their importance, but broader awareness is needed. Additionally, regulatory changes, particularly in energy efficiency, will further segment the market. Educating customers to make informed choices will be crucial for the industry’s evolution.