Magazine for the professional tire industry
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Focus on industry Choi's vision for Kumho New products anchor his fve-year plan By Bob Ulrich U nder Harry Choi, Kumho Tire U.S.A. Inc. has gone back to the basics. It was a necessary move, according to the frst-year CEO and president. Te company had lost focus and "failed to read market trends very well." New products were few and far between. Pricing policies were inconsistent. Te associate dealer program, renamed Premium Fuel, needed to be revamped. So Choi came up with a five-year plan to turn the company around. It centers on his "5 P's, 1 S" philosophy. Te fve P's stand for product, price, promotions, place (i.e., distribution channels) and people. Te S stands for "system-based sales." If the plan is implemented successfully, Kumho will sell 'We are truly trying to rebuild (Kumho's) foundations, not only for one year, but also long-term.' Harry Choi, CEO and president at least 10 million replacement consumer and commercial tire units in the United States in 2017. "We are truly trying to rebuild our foundations, not only for one year, but also long-term," he said. "As such, we are sufering a lot of pain, both externally and internally. "Our customers have been willing to share our pain, and we very much appreciate that." At the 2014 Kumho Dealer Meeting in Punta Cana, Dominican Republic, Choi and his team shared his vision one-on-one with key accounts — and Modern Tire Dealer. New products In 2014, Kumho will introduce two replacement tires. Te frst will be the Kumho Solus TA31 in June. Te new high performance all-season touring tire will be available in 37 H- and V-rated sizes ranging from 14 to 18 inches. It will replace the Solus KH16. Tree of the sizes, ftments on the 2014 Kia Soul, were announced last October: 205/60R16 92H, 215/55R17 94V and 235/45R18 94V. Te symmetric, fve-rib tire features large inner and outer shoulder blocks designed for excellent dry traction 58 and handling. Sipes and cross grooves in the center ribs are responsible for the TA31's ability to hold the road under wet (and snowy) conditions. Te Solus TA71, a grand touring UHP all-season tire, will be available in 38 sizes in December. It will replace the Ecsta LX Platinum (KU27). Kumho also will add six sizes to its Ecsta PA31 line in March 2014. Te high performance all-season tire, which Kumho backs with a 50,000-mile limited tread wear warranty, was introduced last September. Perhaps the biggest news is the planned launch of the Road Venture AT51 in 43 sizes in March 2015. It will replace the Road Venture AT (KL78). "Tis is the tire our dealers have been asking for," said David Koh, marketing communications manager. Premium Fuel Te original Fuel associate dealer program has changed a lot since 2007, too much, according to Koh. "So our goal for 2014 is to elevate the Premium Fuel program and make it more consistent. It will include basically our entire product line." Tere also will be improved marketing support, including customized dealer promotion programs, and three dedicated sales program coordinators. Te new Kumho Dealer Portal allows members to see, in "real time," where they stand in relation to their purchase targets, said Koh. Te company's Edge training program, point-of-sale materials and wearables store also can be found in the portal. "We want the dealer to have a one-stop shop for everything related to Kumho." Te company is asking existing members to re-enlist through Feb. 28, 2014, so the company can keep them beter informed about program benefts and improvements. Going to market "All our marketing eforts are aimed at how to help our dealers sell our brand more easily," said S.B. Kim, manager of Kumho's North American marketing team. "To achieve that goal, we have to increase our brand awareness. "Last year, we focused on the dealer side. In 2014, we are also going to focus on the end-user side, because our current brand awareness is weak and not enough compared with our expectations." Kumho will continue to rely on sports marketing and its annual spring and fall national consumer promotions to increase brand familiarity. Products for the promotions have yet to be chosen. Te marketing plan will be backed by a reorganized, larger sales division, led by John Hagan, the new national vice president of sales. Hagan was formerly senior director of sales operations at Toyo Tire U.S.A. Corp. ■ MTD January 2014