EAST NORRITON, Pa. (Oct. 13, 2003) — Treadways Corp. has developed a product screen management program designed to streamline its Laramie, Jetzon, Telstar and Eldorado brand offerings and simplify stock-keeping for dealers.
With the concept, dubbed “Powerline,” Treadways will replace its former layers of “entry,” “good,” “better” and “best” tires with only “good” and “premium” applications. Some sizes will be phased out and others added, company officials said.
Treadways also will create a new brand, Triton, that will comprise some less popular tire sizes as well as new sizes that have yet to reach the appropriate level of demand to include them in one of the company's primary brands. The Triton brand is a “supplemental” brand available to all Treadways brands' dealers, officials said.
The idea of Powerline, company officials said, is to increase market share by offering more complete product lines while at the same time making inventories easier to manage for both dealers and Treadways.
The changes will be rolled out at the beginning of next month and should be complete by mid to late second quarter, 2004.
The result is a reduction of about 300 SKUs—about 30 percent—among the four brands, CEO Dan Wire told Tire Business. Within the “good” tier, each brand will have about 55 SKUs, and within the “premium” tier, each brand will have about 67 SKUs, he said.
Company officials said Treadways made a “multi-million” dollar investment in new molds to produce unique tread designs to further distinguish the brands.
“The brands will be even stronger,” Mr. Wire said. “We're doing this to strengthen the brands.”