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Michelin, Recommendation - Coggle Diagram
Michelin
Price
In accordance with its functional brand management strategy, Michelin uses a premium pricing strategy
Using the example of the UKs best selling car so far in 2023, the Vauxhall corsa, the following prices indicate how much tyres for this car would cost a customer
This pricing strategy reflects the functional value of the brand by reflecting the superior quality that it possesses in relation to its competitors,
What is the theory where people think they are getting something of higher quality when they pay a higher price??
People are prepared to pay because they know they can rely on the brand of tyres to be durable, longlasting and safe
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Maslow's hierarchy of needs - high quality tyres made by Michelin satisfy the safety needs of consumers as they are assured they can drive safely due to the quality of the tyres
Product
Logo
Yellow = happiness, spontaniety, positivity
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Logo design is particularly important because Michelin have less freedom with the design of their product and packaging due to safety regulations, therefore their logo and branding must create brand salience in the minds of the consumer
Blue = open spaces, freedom, inspiration
This strategic choice enhances consumer perceptions of the brand's capacity to fulfil their practical needs, thus achieving functional congruity
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Brand personality could be seen as competent in the 5 personality factors identified by aaker 1997, as it is reliable, intelliegent and successful
Michelin Man
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Smiling, friendly, dependable
This demonstrates complete anthropomorphism of the brand - the meanings associated with the Michelin man are transferred to the brand
He is family friendly - associating this character with your family may mean you will associate the brand with purchases that affect your family - good tyres are important for keeping your family safe
Brand character adds warmth = salience = positive emotions = more likely to purchase and the brand remains in consumers evoked set when the functional need arises
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Creates positive emotions - positive emotion can lead to less thought, information seeking, reasoning and attention to negatives (such as high price)
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Tyres
The tyres themselves even have the logo and the michelin man on which increases utilitarian value for the customer
Michelin make tyres for over 13 different vehicles, including cars, bicycles, trucks and aircraft. Within these vehicle categories, there is an extensive range of different tyres for varying purposes such as the crossclimate range and the primacy range for passenger cars. Some tyres even have over 100 different sizes available
Even have tyres available for electric and hybrid cars- important because people value a company promoting being environmentally friendly
This range allows the brand to satisfy the practical needs of various customers in different industries.
Even each tyre has its own range, such as the Primacy with the Primacy 3, 4 and 4+, indicating that the brand can maintain its position as a premium tyre supplier whilst also offering a variety of options for all customers, but not compromising on offering consistent 'safety made to last'
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Heuristic Frame
Functional brands are often seen as heuristic frames, as they have low search costs, low involvement and simple decision making on behalf of the consumer
Low involvement
less self expressive, private
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Promotion
Michelin official tyre partner and tyre technology partner for Gran Turismo
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Integrating the michelin brand: on track branding elements and scenography, virtual museum on the game introduces players into michelins history in global motorsports, performance and innovation, players can select different hard, medium and soft formats of tyres thanks to Michelin's tyre technology
Increases brand salience with markets potentially not otherwise associated with tyre brands - Grand Turismo surpassed 90 million sales worldwide in 2022
Partnered with Hyundai
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Michelin created tyres especially for the hyundai ioniq 5 which is a electric vehicle after signing a memorandum of understanding to develop next generation tyres optimised for premium electrc vehicles
The ioniq 5 is advertised as a family vehicle, as seen by the repsentations of family and parenthood in their TV advertisement
This representation of family with the advert creates connotations of safety and reliability, which results in a meanings and value transfer to the brand michelin too.
This means that although Michelin can be associated with speed, efficiency and sport through its partnerships with car manufacturers like porsche, it is also associated with trust, realiability and safety through its partnerships with brands like hyundai
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Michelin further reinforces its luxury and premium brand with its 'Michelin Guide' - a series of books published by the company awarding up to three Michelin starts for excellence in gastronomy establishments
These stars are used by restaurants as a USP, a recognised stamp of approval, a 'badge of honor'
By association, both the restaurant and the Michelin brand are considered premium and luxurious
Porsche Partnership
Michelin and porsche have seen a succesful partnership in both mortorport and series production vehicles since 1961.
The partnership has culminated many super sports cars, such as the Porsche Carrera GT which used made-to-measure tyres designed by Michelin
The Porsche 918 Spyder ran exclusively on Michelin Pilot Sport Cup 2 tyres Link Title
Place
Michelin has established a large variety of retailers for its brand, with over 50 retailers in the city of Edinburgh alone
On Cars
Although the tyres are often advertised on their own they are also very often advertised in their functional place - whether that be on a car, bike or sportscar
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Retailers
Official retailers include some of the UKs largest car repair and servicing companies like KwikFit and Halfords.
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As classified by the economic times, tyres are a low involvement good, therefore ease and satisfaction are the customers priority
widespread accessibility is crucial as it results in repeat purchases of the brand and perhaps in turn consumer loyalty
Recommendation
F1 had 1.21 million viewers per race in 2022 in the US, which was an increase by 29 % from 2021.
Worldwide 445 million watched it in 2021
Last time they supplied tyres for F1 was in 2006, after which it withdrew from the sport because of disagreements with the direction of the sport. Michelin wants to be innovative with its tyres and says that F1 doesnt seem interested in allowing that to happen Link Title
Michelin want to introduce 18 inch tyres to F1 rather than the usual 13 inch, but cannot convince the company to do so
Pirelli has been supplying their tyres exclusively since 2011 Link Title
There is a place for Michelin here as they value innovation and development. There have been calls from drivers such as Max Verstappen who say there is a lack of a tyre war in formula 1, resulting in Pirelli taking a conservative approach to tyre development, especially regarding their wet weather products
Michelin should settle an agreement with F1 in terms of innovation and development which allows them to be creative and advance technologies which puts them in a better competitive position than Pirelli to take over this exclusive supplier role
This would be good for Michelin as brand placement could result in larger brand recognition and salience from consumers, as F1 has such a large and growing viewer base. This means that consumers will associate their tyres with high quality, performance and reliability because they are used by professional sports teams
However, this type of partnership may enable some associations that are unfavourable for Michelin. For example, F1 is often considered a risky and dangerous sport. For consumers unaware of their full scale of offerings, they may be less willing to use Michelin tyres for their cars as they might think they are only for sports cars and not fit for every day use on normal cars. They might brand the tyres unsafe to use on normal roads.
This could enhance brand equity because the brand resonates with the customer more, which can result in intense active loyalty (CBBE model - Keller, 2001)