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Wednesday, August 11, 1999

Ceat retreads retail chain strategy 

Chandan Dubey  
Mumbai, Aug 10: Ceat Tyres Limited, part of the Rs 6,400-crore RPG Group, has relaunched Ceat Shoppe, its decade-old exclusive retail chain for passenger car tyres in the Indian market. The pilot new-look Ceat Shoppe was launched in Rajkot, Gujarat two weeks ago. In the next one month the company will throw open eight revamped Ceat Shoppe to consumers in Delhi.

All the existing 92 Ceat Shoppe will be revamped by the end of this year in a phased manner. The company also plans to increase the number of its exclusive retail outlets to 130. The relaunch exercise has been preceded by a market study and consumer research into aspects of shop interiors including retailing ambience and shopping comfort, say company sources. Each of the revamped retail shops will bear a black, red and blue facade. The showroom comprises a `touch and feel' tyre stand and informative multi-panel brand wall, which enables consumers to choose the right tyre for their vehicle. These showrooms will also be equipped with facilities like wheel alignment, balancing and tyre changer. Info-boards have also been provided inside the stores to help consumers with technical information. In an effort to make the shopping experience pleasurable, the showrooms allow consumers to participate in the `Cricket Rating Board' contest and the `Tough Grip' competition promoted by the company.

The company is currently working on an advertising campaign to support the relaunch of the Ceat Shoppe. Being created in conjunction with HTA, the campaign is expected to be released in the print media. Ceat's brand management team is also working on a host of consumer promotion offers like give-aways, across-the-counter claim settlement etc. Ceat perceives these exclusive outlets as an independent sub-brand working through a dedicated brand team and its own sales and marketing budget.

The relaunch has been timed to coincide with the entry of a host of multinational players in the market. Other players in the Rs 9,000-crore tyre market including MNCs like Goodyear Tyres have similar chains of exclusive shops. Market leader MRF Limited plans to set up 147 exclusive outlets across the country over the next three years, while Goodyear owns ten such showrooms in the country currently. With close to 51 per cent of the revenues in the Rs 700-crore passenger car tyre market coming from the replacement market, these exclusive outlets are expected to act as image drivers for brands.

``Since the concept of shopping is undergoing a change, companies ought to add value wherever they can. In the replacement tyre market, sales are driven solely on brand image,'' opines a Ceat spokesperson.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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