Published by MBA Skool Team, Last Updated: September 09, 2017
Marketing Strategy of Yokohama analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Yokohama marketing mix, help the brand succeed.
Yokohama marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Yokohama Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Yokohama Product Strategy:
The product strategy and mix in Yokohama marketing strategy can be explained as follows:
Yokohama is one of the leading tyre brands in the world. Yokohama has product adaptation strategy for geography as its product varies across the region. Yokohama tyres divides its product offering into business to consumer and business to business as a part of its marketing mix. For consumer segment has Passenger tyres. Passenger tyres are further subdivided into sports car, Luxury Saloon, CUV/MPV, Family Car, SUV, and Winter Tyres. In business segment, Yokohama’s broad sub-segments are Truck and Bus tyres, Light truck tyres, Van tyres, Off the road tyres and Motorsport tyres. For Truck, company offers tyres for long distance transport, regional transport, on/off road short distance transport and short distance, urban, local multi-stop transport. In off the road tyre sub-segment company has offerings for earthmovers, loader, and dozer tyres, grader tyres, compactor tyres, mobile crane tyres, and industrial tyres. All off the road tyres are available in two variants Radial Ply, and Diagonal (Bias) Ply. For motorsports sub-segment, Yokohama offers tyres in categories such as racing tyre, road legal sport tyre, sport tyre for exclusive track use, and rally tyres.
Yokohama Price/Pricing Strategy:
Below is the pricing strategy in Yokohama marketing strategy:
Yokohama tyre promises to deliver premium level of products in terms of performance and durability at competitive tyre prices.
The company has different target segments of consumers and business entities and hence prices differentiated based on product lines. Company’s iconic Advan branded tyres are positioned to be in the premium segment and are available at premium prices. Within the product lines the customers have the option to choose value added product within the product line for which Yokohama tyre charges some premium over the base tyre offering. Company prices its products according to the price sensitivity of the local market. Hence, the prices and features for its product do vary in different geographies and countries. Yokohama provide discounts for certain season as a promotion strategy. The company provides the range of retail prices on its website to reduce the risk of overpricing by retailers.
Yokohama Place & Distribution Strategy:
Following is the distribution strategy in the Yokohama marketing mix:
Yokohama tyres has its presence in six continents across the globe through subsidiaries, franchise, and alliances. The company has broadly divided its regions of operation by Africa, Asia, Oceania, Europe, Middle East, North America, Latin America, and Caribbean. Yokohama is present in most of the developed markets due to a strong distribution marketing mix strategy in countries such as USA, Canada, France, Germany, Great Britain. In emerging economies of India, China, South Africa and Brazil, the company has both its distribution and manufacturing units. Yokohama serves most of its consumers in consumer and business segment through the traditional retail channel where company allocates dealership for the sale of its product line. The company’s products also available through retail outlets apart from authorised dealer stores. Company has OEM (originally equipment manufacturer) relationship with several companies.
The big car manufacturers which have OEM contracts with Yokohama tyres include Audi, Fiat, Honda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Suzuki, and Toyota.
Yokohama Promotion & Advertising Strategy:
The promotional and advertising strategy in the Yokohama marketing strategy is as follows:
Yokohama tyres strategy is to increase the brand awareness on the global level. Yokohama tyres have targeted family cars segment and motorsports segment. To promote itself globally, it has sponsored Chelsea Football Club which has world-wide fan following. To promote its diverse portfolio, the company launched I am Yokohama commercial TV ad campaigns. The company has since aired various TV advertisements with distinct categories of tyres to create product and brand awareness. The campaign highlights the various element of tire component and design to communicate quality of its product to the customers. Yokohama tyres designs its catalogues attractively provide technical specific details for commercial buyers. Yokohama Tyres wants to build its identity as one of most trusted brands by communities all over the world. Company’s CSR programmes hold a key position in its strategy of building trust among communities. Yokohama produces annual CSR report. To connect with the customers on personal level company uses social media and digital media platforms like YouTube, Facebook, Instagram, and Twitter. Hence, this gives an insight in the marketing mix of Yokohama tyres.
About Yokohama Tyres:
Yokohama rubber company is one of the world’s largest tyre manufacturer. The company is headquartered in Tokyo, Japan. The company was formed in 1913 as a result of joint venture between Yokohama Electric Cable Manufacturing Company and BF Goodrich Company. The company in its initial years used Goodrich trademark and changed its trademark to Yokohama in 1937. Yokohama’s net sales in 2016 was 596.2 billion yen which was 5.3% decline over 2015 figures. The major reason for the decline is the downturn in overseas tyre market for the Japanese manufacturer. The other factors for the decline include appreciation of “Yen” and falling prices. However, the industry outlook remains positive as it is expected to grow $298 billion by 2021 from 2014 levels at a CAGR of 6.8% during the years.
This growth is expected to come from rapid advancement in technology and growing demand for ecologically viable tyres. Asia Pacific has emerged to be the largest market for Yokohama due to growing demands for vehicles China, India, Japan, and Australia.
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