Tire Factory/Point S unveils 'pointed' strategy (updated)

PORTLAND, Ore. (Feb. 22, 2016) — “Get to the Point” — that's the advertising/promotion message Tire Factory Group is rolling out to consumers throughout the group's 13-state business territory.

The strategy is aimed at heralding the dealer marketing cooperative's move to the Point S identity, which Tire Factory opted for last May.

While the group's 200-plus members aren't 100-percent unanimous in embracing the change, a core group of dealers has converted 28 stores already, and the group expects 41 more to be flying the Point S flag and blue and green color scheme by mid-summer and 80 to 100 before year-end, according to Walter Lybeck, acting CEO.

“We've seen overwhelming support for and commitment to the direction we're heading as an organization,” he said.

The group is offering members who convert up to $25,000 in funds through year-end to cover new signage, repainting and other rebranding measures. In order to assuage those in the group who still feel strongly about the Tire Factory brand, the group offers a co-branding option through 2019, although it's not encouraged.

Tire Factory also is offering advice on rebranding/remodeling, including computer-generated mockups.

The advertising/promotion campaign will feature a number of “What's the Point?” messages, all pointing to what the “S” stands for — service, selection, safety, satisfaction.

Overall, Tire Factory/Point S ended 2015 with 205 points of sale, including 10 new members. The group is targeting growth of 50 new stores this year, then to 305 by 2017, Mr. Lybeck said, including dealers in states further east.

Seen from another perspective, Tire Factory/Point S members generated $92 million in revenue last year through the group's purchases, Mr. Lybeck said. That is expected to grow to $100 million this year and $115 million in 2017.

 To achieve this pace of growth, he said management is evaluating larger dealerships — groups with five-plus stores — as potential new members.

Other key initiatives disclosed at the group's dealer meeting in Portland over the last few days include:

• There will be a Point S-branded winter tire available to Point S dealers in Canada, the U.S. and Scandinavia next winter. Produced in Europe by Continental A.G., the Winter Star will be a studdable tire available in 30 SKUs in a range of 13- to 17-inch rim diameters.
• A Point S-branded winter light truck radial is being readied for a mid-2017 launch; Point S Development is still discussing the project with a number of potential manufacturers;
• The group is rolling out “Point S University,” an online training tool that will offer a variety of training “paks” in 3- to 5-minute videos covering a wide range of skills;
• The group will be adding a Point S-dedicated website — Pointstire.com — later this year;
• Hankook Tire Co. Inc.'s Laufenn associate brand is replacing the Trazano brand in the Point S portfolio; and
• BKT USA Inc. is a new preferred farm and OTR tire vendor for the Point S group, providing for direct deliveries.

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To reach this reporter: [email protected]; 330-865-6145; Twitter: @reifenmensch