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TIRE-PRESENTATION-2

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TIRE-PRESENTATION-2 Powered By Docstoc
					      Meineke® Location

        165 Long Road
    Chesterfield, MO 63005

    Tire Category Analysis
            Version 1




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     Category Overview

    Tire Category Analysis
            Version 1




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    In 2008, overall U.S. tire replacement sales totaled $30.2 billion, while passenger tires
    accounted for $19.4 billion (up 3.5% from 2007). The 25,600 independent tire outlets
    own 59.5% of this market. Replacement consumer (passenger and light truck) tire
    shipments decreased approximately 5% in 2008, from 240.7 million units to 229
    million.

    The top three U.S. leaders in new tire sales in 2008 were Bridgestone Firestone ($8.5
    billion), Goodyear ($8.3 billion), and Michelin North America ($7.2 billion). [Source:
    "Tire Dealer Profile." Modern Tire Dealer. 2008.]

    Consumers are price-sensitive to tire costs and may resist purchasing replacement
    tires until they become a necessity. [Sources: Bensinger, Ken. "Buyers in the Dark
    About Tires." The Ledger. May 8, 2008; "The 2009 Facts Section." Modern Tire
    Dealer. Accessed July 14, 2009; U.S. Census Bureau.]

    OPPORTUNITIES & CHALLENGES
    •Consumers are becoming more knowledgeable about tires' role in fuel efficiency
    •Some businesses are offering coffee shops and Wi-Fi to attract customers
    •More consumers are relying on do-it-for-me services (Wal-Mart)
    •The price of tires continues to rise
    •The industry is highly competitive
    •Meineke performs other services (e,g, alignments) that many competitors do not.

    ANNUAL SALES PER LOCATION
    Industry Marketing Insights TIRE STORES in the St. Louis, MO-IL Market
    The average annual sales per location for automotive parts, accessories, & tire stores
    is $1,055,951 in St. Louis, MO-IL Market.

    Industry averages approximately $1.9 MILLION annually per location - [Source: "Tire
    Dealer Profile." Modern Tire Dealer. 2008.]


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    MARKET SALES POTENTIAL
    Consumer expenditures of key products/services at all business types in the St. Louis,
    MO-IL market are highlighted below. Expenditure data does not contain commercial
    sales and is based on projected 2009 data from the U.S. Bureau of Labor Statistics




    ADDITIONAL AD COPY POINTS
    Remember to attract more attention by listing offered goods and services in your
    copy. Here are a few items commonly offered by Tire Stores:

    24-hour road service                  Pick-up & delivery
    Fleet accounts                        4-wheel computer alignment
    Brake service                         Auto glass
    Truck/tractor/bus tires Suspensions               Trade-ins
    Front end alignments                  Alloy & chrome wheels

    TOP ADVERTISING MEDIA USED
    The top four media used by Tire Dealers in the St. Louis MO market are: Yellow
    Pages/Directory, Broadcast TV, Newspapers, Radio - according to the 2008 Borrell
    Associates, Inc. Local Advertising Spending Report (LASR). These top four media make
    up (on average) 94.22% of the ad budget for typical Tire Dealers in the St. Louis MO
    market.




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    MARKET COMPETITION BY NUMBER OF ESTABLISHMENTS
    Top local competitors are other Tire Stores in your market. Also, Discount Stores,
    Warehouse Clubs/Superstores, Auto Dealerships (All Makes), Auto Parts Stores and
    Auto Service Centers in your market.




                             SOURCES: 2009 Census Bureau data
    TARGET CUSTOMERS
    Women make up a large part of this industry's customer base. A 2008 study found
    that the percentage of women planning to purchase wheels, tires or suspension
    components increased to 17% (from 10%) from April to June 2008. Additionally,
    approximately nearly 40% of a typical retailer dealer’s customers are females, while
    women account for more than 60% of vehicle-service purchases. [Sources; "Women
    really covet wheels, tires--SEMA." Tire Business. December 3, 2008; "Women Power."]

    SUV owners may also be a lucrative market. The economy may force owners to keep
    their cars longer and many may be due for new tires, especially considering new SUV
    sales peaked in 2005. [Source: Mavrigian, Lori L. "Catering to the CUV/SUV Crowd."
    Modern Tire Dealer. June 17, 2009.]

    Note that the average age of the vehicles serviced by tire dealers is 5.3 years.
    [Source: "Tire Dealer Profile, 2008." Modern Tire Dealer. Accessed July 14, 2009.]

    These retailers should advertise the importance of tire pressure to drivers. A 2008
    survey revealed that approximately 50% of drivers say they checked their tire
    pressure within the past month. [Source: The Rubber Manufacturers Association.
    April 2008.]


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    TARGET CUSTOMERS BY MILE RADIUS
    Most customers are drawn from a 5 mile radius.

    TOP FACTORS PEOPLE CONSIDER WHEN CHOOSING THIS TYPE OF ACCOUNT
    When looking for tires, SUV owners focus on tires that provide excellent value,
    quality and performance. Another major selling point for these owners is style, and
    dealers can attract SUV owners by offering tire and wheel packages. [Source:
    Mavrigian, Lori L. "Catering to the CUV/SUV Crowd." Modern Tire Dealer. June 17,
    2009.]

    OTHER IMPORTANT FACTS ABOUT TYPICAL CUSTOMERS
    The market in 2008 was broken down as follows by product unit sales:
          •All-season -                  145.2 million (down 4.2%)
          •High performance -            27.7 million (down 7.6%)
          •UHP -                         19.8 million (up 3.6%)
          •Winter -                      5.3 million (up 23.2%)
    [Source: "The 2009 Facts Section." Modern Tire Dealer. Accessed July 14, 2009.]

    Industry in 2008
    In 2007, imported tires accounted for 57.2% of replacement market shipments

    In 2008, the passenger tire retail market share was broken down as follows:
          •Independent tire dealers - 59.5%
          •Mass merchandisers - 15.0%
          •Warehouse clubs - 9.0%
          •Tire company-owned stores - 7.5%
          •Auto dealerships - 4.5% Service stations - 3.0%
          •Miscellaneous outlets - 1.5%

    [Sources: Bensinger, Ken. "Buyers in the Dark About Tires." The Ledger. May 8, 2008;
    Modern Tire Dealer.]




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        Meineke® Location

         165 Long Road
     Chesterfield, MO 63005

    Trade Area Analysis - Tires
               Version 1




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    Theme Consumer Expenditure
    Current Year Estimates (2009)
    Detail Total Expenditure                       By Total Category
                                                   Spend in $
    Transportation Vehicle Repair
    and Maintenance Vehicle
    Repair: Tires Purchases by
    Block Group

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                            The Approach




    The approach is clean with many opportunities to promote the location




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                            Competition - Google




            SUBJECT SITE

     ANALYSIS
     1. There is an extremely high levels of competition within the trade area with 3
        Dodds locations, NTB, Auto Tire Care Center, Plaza Tire, Northwest Tire Auto
        Center & 2 Firestone Locations within a 6 mile radius of subject site
     2. The site does not appear in a Google word search using tires
     3. The site reviews may be creating a problem for potential customers



                                                               Google frowns on
                                                               self review that are
                                                               highly positives and
                                                               will blackball sites
                                                               because of it


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     Consumer Demographics




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                Category Purchases




     # of HH:                     89,785

     Total Category Spend:        $18,488,056

     Per HH:                      $205.91




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       Meineke® Location

         165 Long Road
     Chesterfield, MO 63005

     Zip Code Analysis - Tires
               Version 1




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     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                        By Total Category
                                                     Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by Zip
     Code

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     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                        By Total Category
                                                     Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by Zip
     Code

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     Consumer Demographics – Tier 1




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     Consumer Demographics – Tier 1




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            Category Purchases– Tier 1




     # of HH:                     23,510

     Total Category Spend:        $5,927,853

     Per HH:                      $252.14




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     Consumer Demographics – Tier 2




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     Consumer Demographics – Tier 2




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            Category Purchases– Tier 2




     # of HH:                      49,833

     Total Category Spend:        $ 9,362,409

     Per HH:                      $187.88




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       Meineke® Location

         165 Long Road
     Chesterfield, MO 63005

     Carrier Route Analysis -
              Tires
              Version 1


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     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                       By Total Category
                                                    Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by
     Carrier Route

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     Consumer Demographics – Tier 1




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     Consumer Demographics – Tier 1




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            Category Purchases– Tier 1




     # of HH:                     3,352

     Total Category Spend:        $ 1,126,689

     Per HH:                      $336.12




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     Consumer Demographics – Tier 2




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     Consumer Demographics – Tier 2




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            Category Purchases– Tier 2




     # of HH:                     3,441

     Total Category Spend:        $ 861,583

     Per HH:                      $249.66




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     Consumer Demographics – Tier 3




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     Consumer Demographics – Tier 3




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            Category Purchases– Tier 3




     # of HH:                     2,611

     Total Category Spend:        $ 546,115

     Per HH:                      $209.16




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       Meineke® Location

         165 Long Road
     Chesterfield, MO 63005

     Block Group Analysis -
             Tires
             Version 1


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                                Northwest of Location




     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                                 By Total Category
                                                              Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by
     Block Group

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                                Northeast of Location




     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                                 By Total Category
                                                              Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by
     Block Group

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                                Southeast of Location




     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                                 By Total Category
                                                              Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by
     Block Group

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                                Southwest of Location




     Theme Consumer Expenditure
     Current Year Estimates (2009)
     Detail Total Expenditure                                 By Total Category
                                                              Spend in $
     Transportation Vehicle Repair
     and Maintenance Vehicle
     Repair: Tires Purchases by
     Block Group

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posted:5/27/2011
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