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Hankook Tire America Corp. unveiled aggressive sales goals and plans for increased efficiencies at its annual “Partners’ Day,” a four-day dealer meeting.
The tire industry faced unprecedented increases in the cost of raw materials and energy costs in 2008. Despite these challenges, Hankook Tire American Corp. reports that it saw U.S. sales increase 6 percent in 2008 to a record $700-plus million, including unit sales gains in the ultra-high performance and touring passenger categories, along with light truck and medium/heavy duty truck tire categories. During his greeting at the dealer meeting, Greg Pae, president and COO, focused on Hankook’s optimistic future, stating his goal for Hankook Tire America Corp. is to reach $800 million in sales this year and surpass $1 billion in sales by 2011.
“As we begin 2009, we remain committed to delivering high-quality products and marketing support which can make the difference between surviving and thriving in this challenging economic environment,” Pae says. “Customers are going to be shopping for best-value purchases, and we feel this presents Hankook with a unique opportunity to demonstrate our quality products backed by industry-leading warranties at a competitive price. For this reason, we are optimistic about our business potential this year.”
Pae also notes that Hankook increased global sales in 2008 by 5.1 percent to a record $3.7 billion. The company has enjoyed incredible growth - up 220 percent globally in the past five years - with the U.S. and Canada now contributing 15.6 percent of total sales. To meet growing demand for Hankook product globally, the tire maker is increasing production by 5 million units, for a total of 78 million tires in 2009.
“Hankook Tire remains focused on product quality as we continue to grow globally.” Pae says. “Our product line is already among the best in the industry and we’re constantly adding new sizes. We intend to earn more (dealer) business by being a better and more efficient supplier, managing costs and increasing productivity.”
To increase efficiency and customer service, Hankook recently brought a new Web-based order/tracking system online. Additionally, Hankook has added 145,000-square-feet of warehouse space to its California and New Jersey distribution centers earlier this year. With distribution centers in New Jersey, Tennessee, Texas, Illinois, California and Oregon, Hankook Tire America Corp. now has over 1.7 million-square-feet of warehouse space to accommodate up to 2.5 million tires. These enhancements are designed to cut order lead time by up to three days.
Hankook recently launched its Empowerment Program, an online dealer training program aimed at educating dealers about the Hankook brand. Each of the product line modules includes a video introduction, product position guide, sales guide, data sheet, competitive comparison, product application guide and Empowerment training program.
In addition to ongoing investments in technology and manufacturing, Hankook remains committed to providing marketing support designed to increase brand awareness and impact sales for Hankook dealers.
“We will continue to invest in our ‘Tame the Road’ advertising campaign launched last year,” says Bill Bainbridge, director, brand communications, Hankook Tire American Corp. “We’ve made adjustments to our print and broadcast advertising plans to augment our national efforts with stronger local outreach that will more directly drive traffic for Hankook dealers.”
Hankook also will continue its investment in backstop signage at Major League Baseball parks, Internet promotions, motorsports and merchandising.
