Pirelli is a premium Italian tire manufacturer known for high performance and luxury tires. Founded in 1872, Pirelli has grown to operate in over 160 countries with 22 tire plants worldwide. Pirelli invests heavily in research and development, motorsports sponsorships, and brand initiatives like its iconic Pirelli calendar to position itself as a leader in the high-end tire segment. The company focuses on producing tires for high-powered cars as well as tires with advanced technology for industrial vehicles.
Pirelli is a premium Italian tire manufacturer known for high performance and luxury tires. Founded in 1872, Pirelli has grown to operate in over 160 countries with 22 tire plants worldwide. Pirelli invests heavily in research and development, motorsports sponsorships, and brand initiatives like its iconic Pirelli calendar to position itself as a leader in the high-end tire segment. The company focuses on producing tires for high-powered cars as well as tires with advanced technology for industrial vehicles.
Pirelli is a premium Italian tire manufacturer known for high performance and luxury tires. Founded in 1872, Pirelli has grown to operate in over 160 countries with 22 tire plants worldwide. Pirelli invests heavily in research and development, motorsports sponsorships, and brand initiatives like its iconic Pirelli calendar to position itself as a leader in the high-end tire segment. The company focuses on producing tires for high-powered cars as well as tires with advanced technology for industrial vehicles.
Pirelli is a premium Italian tire manufacturer known for high performance and luxury tires. Founded in 1872, Pirelli has grown to operate in over 160 countries with 22 tire plants worldwide. Pirelli invests heavily in research and development, motorsports sponsorships, and brand initiatives like its iconic Pirelli calendar to position itself as a leader in the high-end tire segment. The company focuses on producing tires for high-powered cars as well as tires with advanced technology for industrial vehicles.
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Pirelli is one of the largest tire manufacturers globally with a focus on high performance tires. It invests heavily in R&D and has partnerships in motor racing.
The two main business units of Pirelli are consumer and industrial. The consumer unit focuses on private vehicles while the industrial unit focuses on commercial vehicles and steelcord production.
Pirelli is innovative in communication and seeks new ways to transmit its brand through various tools and languages.
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Andrea Cristiano nmatricola
Alice Porchera nmatricola 18502 Andrea Re Calegari nmatricola 18828 Riccardo Stiglich nmatricola 18460
2 PIRELLI TYRE 1. INTRODUCTION Founded in 1872, Pirelli is the worlds fifth largest tyre manufacturer based on revenues. With a presence in over 160 countries, the company now has 22 tyre manufacturing facilities on five continents and employs over 37,000 people. Pirelli is one of the leading manufacturers of high-end and performance tyre, and is striving to become the world leader in this segment by 2015. The company has always had a keen focus on research and development, investing around 3% of revenues each year in this area: one of the highest levels of research investment in the tyre industry. Having been involved in motor racing since 1907, Pirelli is currently the single tyre manufacturer for Formula 1 for the 2011-2013 championship seasons and for the World Superbike Championship. The Pirelli Tyre Group activities are splitted into two business units, consumer e industrial. The consumer business includes tyre which will be used by private users such as cars, SUV, van and motorcycles, while on the other hand, the industrial business comprehends tyre aimed to professional transport vehicles (buses, trucks, shovels and tractors) and the Steelcord production which is the basic straightening component for the creation of radial tyre. In the car tyre sector, Pirelli offers a range of products for cars and SUVs, focussing on high an ultra-high performance products that aim to combine a notable level of stability and safety in all driving conditions with elevated grip and road holding even at high speeds. This type of tyre is particularly suitable
3 for powerful, high performance cars, the qualities of which they are designed to exalt. Within its ranges of tyre for industrial vehicles, Pirelli Tyre has progressively reinforced its commitment to the markets in developing countries characterized by a growing demand - investing in production capacity in countries such as Brazil, in the Middle East and in China - and has increasingly focussed on the production of tyre with a higher technological content. Pirelli is synonymous of innovation in communication, too. For Pirelli, communicating is seeking new ways and new language to create tools to transmit a way of being.
2. PIRELLI TYRES Tyre Function Over one hundred years experience of tyre technology has enabled Pirelli to combine in their products maximum levels of security, longevity, comfort and attention to the environment. Each Pirelli tyre provides not only performance but also a "feel for the road" and communication with the driver, allowing a better understanding of the vehicle's performance. We recommend this section if you want to become familiar with the world of car tyre.
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Tyre Service Description In addition to the Tyre Size Designation a tyre may be identified by a Service Description consisting of a Load Index (or two in the case of single/dual fitment) and a Speed Symbol. The Load Index is a numerical code associated with the maximum load a tyre can carry (except for loads at speeds above 210km/h) at a speed indicated by its Speed Symbol under service conditions specified by the tyre manufacturer.
Tyre Markings In addition to the tyre size and the service description, on the tyre sidewall there are several different inscriptions: lets have a look at some of them. Brand and Product Name
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Side Indication For all asymmetric products it is important to fit the tyre on the rim in the correct position. In fact asymmetric tread pattern designs are developed to offer the best performance considering the different behaviours of the external and internal areas of the tread design.
DOT Safety Standard Codes DOT (Department Of Transportation) is a legal marking required in many countries in order to sell the tyres. DOT means the tyres meet or exceed the Department of Transportations safety standards.
1. Means tyre meets or exceeds Department of Transportation safety standards 2. Manufacturer and Plant Code Number (Assigned by DOT)
Tyre Size Code Number Group of Optional Symbols for the Manufacturer (to identify the brand or other significant characteristics of the tyre, for example date of manufacture)
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M+S (Mud & Snow) and Snowflake Marking Winter tyres, also called snow, cold weather or thermal tyres, and identified by the branding M+S (Mud&Snow) on the side of the tyres together with the drawing of a mountain with a snowflake. Legally the M+S marking alone is sufficient to identify a winter tyre, but the tyre industry has adopted the snowflake marking to differentiate real winter tyres (M+S and snowflake) from all-season tyres (only M+S).
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Pirelli is the official supplier of tires for F1 with two types of tyres :
SLICK TYRE (SUPERSOFT, SOFT, MEDIUM, HARD) Dry weather tyre, known as slicks, are characterized by a tread pattern that is devoid of blocks or channels. They come in four compounds: supersoft, soft, medium and hard. The different compounds mean that the tyre are well suited to a wide variety of circuits, according to the type of asphalt, the number and severity of the corners, and the top speed on the straights. This allows the teams to make use of an ample range of strategies. For each track, Pirelli in accordance with the FIA - nominates the two dry compounds best suited to the tracks characteristics and the temperature to be expected.
WET WEATHER TYRE (INTERMEDIATE, WET) Wet weather tyre, characterized by grooves in the tread pattern, are split into two types: full wets and intermediates. The full wet tyre can be easily
8 recognized by the deep grooves in the tread pattern and sipes to drain off water on wet asphalt. The intermediates feature channels that are less deep and are designed for damp or slightly wet surfaces, as well as uncertain weather conditions.
Besides Formula 1, pirelli is the official sponsor and official supplier for other automotive manifestations world-wide which : - BRC - START DRIVER - FERRARI OPEN (and FERRARI CHALLENGE) - GT-CUP CHAMPIONSHIP - MINI CHALLENGE - PORSCHE DRIVER - PORSCHE CUP - LAMBORGHINI SUPER TROFEO - RENAULT TROPHY - CITROEN RACING TROPHY - RCZ - IRC (International Rally Cup) sponsored by Pirelli - PIRELLI WORLD CHALLENGE - PIRELLI GT3 CUP TROPHY USA - RALLY AND SOME OTHER
9 3. WHY IS PIRELLI CONSIDERED A PREMIUM BRAND? The "P Lunga" is the distinguishing mark of Pirelli, the element that certainly evokes above all the product the one that symbolizes his core business: the tyre. The logo created in 1908 has since represented a tradition of manufacturing, excellent quality products and service, as well as reliability, strength, innovation and concern which are very important characteristics for the environment. Through over 100 years of hard work, success and leadership the Pirelli brand has consolidated his image of one of the top premium brand in the tyre segment. The Pirelli Manifesto is to change the driving experience by constantly challenging the boundaries of tyre technology, style and sustainability, setting trends in communities across the world. In order to keep his top-brand image, Pirelli is now focusing on long-term brand- building initiatives, such as the Pirelli calendar, the PZero Fashion, the Formula One and the most important, producing premium-tyre. All these activities have shown to be extremely successful in providing a unique profile to the Brand and setting it apart from the competition. The Calendar is the icon of Pirelli's communication. A symbol that for fifty years not only celebrates the female beauty, but also celebrates an art that is still transforming over time. With constantly changing styles and authors, this art always manages to express a new aspect of history. Since its creation in 1964, thanks to Pirelli UK Limited, the groups British subsidiary, the Calendar has continued to mark the passing of time with images by acclaimed photographers
10 of the moment capturing and interpreting contemporary culture and often setting new trends. The Pirelli brand keeps his image also in the fashion segment. The relationship between Pirelli and fashion, which brought about the PZero brand, has its roots in the companys history. Since it was first founded, Pirelli has contributed not only to industry but also to the history of social mores as well, thanks to a continuos research b and innovation of rubber, which was then applied to clothing and accessories. From raincoats to boots, work clothes to elegant overcoats, Pirelli Confezioni, as the garment division was known at the beginning, managed to create a relationship between industry and fashion, which quite naturally developed into the current project known as PZero Fashion.
In the world of Tyre Premium brands, Pirelli aims to use the advantage of its brand as a driver to favor growth in the Premium segment. According to the Interbrand figures, the Pirelli brand is 15% more effective than other brands in the choice of tyre purchases mainly because of the consumer's perception of a the brand as a Premium one thanks to its sporting, glamorous and prestigious image. Among the main tyre makers globally (sales of 6.07 billion euro in 2012), Pirelli is leader in the high-end segments, producing Premium tyres with high technological content.
11 Pirelli distinguishes himself from competitors in the Tyre Industry mainly for two reasons. First of all, Pirelli has a growing focus on the Premium segment (with a 50% of car revenues in 2012 and it is expected to grow to 60% in 2015), which is the segment least affected by the economic crisis. Secondly, Pirelli is working hard in order to becoming the Global Premium Leader in the consumer Business in 2015 (Car and Moto segment, which account for 73% of the Tyres revenues) Pirelli already has a share of 14% of the European Premium Market, the largest in the world (about 50% of the Global Premium Market) and this is made possible because Pirelli is concentrating not only in cutting-edge technologies which result from high investments in R&D but also Pirelli is making long-lasting partnerships with the major car makers, from Ferrari to Maserati, from Lamborghini to Bentley, from Audi to BMW and Mercedes. In the years from 2006 and 2012, Pirelli invested 1.5 billion Euros in improving the production mix of existing factories: standard tires production has been reduced by 13 million pieces, whereas Premium capacity has been constantly increased by improving the quality of the existing plants and opening new sites in Romania, China and Settimo Torinese in Italy. Pirelli is also the Leader in South America, where it operates the Agro Business, as well as in Middle East Africa. In Europe, it enjoys a prominent position, and in China and Asia Pacific, it aims at expanding its market share in the Radial Truck Business.
12 Pirelli is supplying tyre to the Formula One World Championship for a three- year period between 2011 and 2013. The FIA (Fdration Internationale de l'Automobile), the Teams, represented by FOTA (the Formula One Teams Association), and Formula One's organizing body (FOM Formula One Management) chose Pirelli as their exclusive supplier, based on the specific proposals made to guarantee technical and operational stability to the competitors. Pirelli's return to Formula 1 also has a firm eye on the future. For this reason, research into innovative new tyre developments, in full collaboration with the teams, is a vital part of this exciting program. Pirelli is continuing to make important investments in corporate communications, in order to make the most of the high profile and cutting-edge technology that goes hand in hand with supplying Formula 1. This campaign principally helps to support Pirelli's increasing profile in emerging markets: Latin America, the Middle East and Asia Pacific, which are all areas frequently visited by Formula 1. The companys involvement in Formula 1 thus represents an important driver in terms of adding value to the Pirelli brand and contributing to the companys commercial growth, without impacting upon any of its economic or financial plans. Indeed, the global visibility guaranteed through extensive media interest in Formula 1 provides a unique opportunity for the brand to maximize its return on investment.
13 4. DIGITAL MARKETING Digital Marketing is a combination of activities which, through the use of digital instruments, allow the increasing of marketing campaigns and integrated communication by using electronic device, like smartphones, tablets, computers and game consoles. This is due to the growth of digital technologies and the consequence is the change about the communication strategies: on one hand, the passege is from a communication one to many to a communication many to many in which the actors are on the same level (firms, utents, clients, brand ecc.); on the other hand we can talk about a pull communication instead of the old push communication (in this case firm speak and the customers hear). What about the keys words, Digital Marketing is based on: - Multichannels and so firms can use different type of communication digital channel;
- Relations: this type of new marketing build strong and lasting relations with the customers in order to create an open and positive exchange;
- Hearing: the most important point is begin from the market, understand needs and customers behavior and try to satisfy them; this create the possibility to customize the demand and offer a different and personalized experience for each clients;
- Integration: each Digital Marketing plan must be integrate with each communication channel; - Measurement: with Digital activities all is misurable.
14 Digital Marketing refers to all digital activities like Social Network, Blog, Newsletter and Web site; in this case we will analyze only Web site activities, which are The main contact channel used by digital marketing : all promotion and advertising are implemented on web sites in order to engage different type of targets. The most important thing is create a very well-made website because this represent the firm's business card on the net for the users, who want to know some firm's informations. Fundamental is maintain a consistent image with the mission's company and an integrated corporate communication. During the building of a website the most important factors are the following: Implementation and design of search engine friendly (attention about the choice of content of management system) Responsive web design (attention about usability of contents on the website from mobile devices).
Digital Marketing in Pirelli About Pirellis Digital Marketing, we will focalize and analyze its web site: first of all is the most important contact-channel used in a business like these (tyre sector) and at the same time, by taking this decision, we will have the possibility to analyze and compare the economic performance of this new digital instrument due to the different country in which Pirellis firm operate.
15 Why is the web site used as principal instrument of Digital Marketing? As many of us know, Pirelli operate in tyre sector, and for this reason its main business refers to business-to-business market (in particular supplies for car manufacturers): for that the website is, for sure, the principal platform in which it's possible find more information about products and knows more about the different promotion. Obviously the website refers not only to the automotive- seller, but at the same time it can satisfy all customers "needs" in business-to- client market. Thanks to the specific characteristics of this instrument, Pirelli can manage at the best the canalization about its offer, related to each customer.
Is the website International? Pirelli's website can be visited by most of the people coming from different countries, because it was been created in order to reach many different people, cultures and countries, and so it's possible choose your native language: specifically exist one different version for each single country. While, about the country for which the offer is not customize, they can refer to the international site and in particular to the area managers of each country; the promotions and the font are similar between the different versions, obviously adapted following the specific country's characteristics. even if there is not a very personification, about the offers and the advertising, based on these specific country characteristics; in fact this can create some distortions about the possibility to catch the demand opportunities of each different nations.
16 Principal elements of Digital Marketing integrated on the website The website is very important for the business; in fact it integrate some digital functions useful to support all contacts with the business-to-business and business-to-customers clients. First of all, for sure, we have to explain how is the possible to buy on the website, through a category called on-line point of sales: POS allow, to all customers, to buy Pirelli's product just through web technology; this let the company to sell in every place endowed of a web connection; in this way Pirelli can cover the entire territory of the world which use cars or wheeled vehicles. Very important is that often this channel allows the customers to acquire products with targeted promotions. On the other hand, besides on line purchase, the web site propose also some offer about point of sales for determinate nations, so that customers can decide what selling channel choose for satisfy its needs. This is certainly addressed to cover all world demand, for increase traffic on nationals point of sales. All this technology is divided between Business-to-Business and Business-to- Customers, with the related private and dedicated areas, for canalize all the information about the characteristics of the reference customers. An example is the platform E-learning dedicated in particular for the B2B, in order to maintain all the employees and technical always informed and prepared about product's new technologies: is a platform specific for the on-line formation, in order to equalize and unify the skills of each " Pirelli's Men " all over the world.
17 This are the main characteristics of Pirelli website in terms of international: now we will present the questionnaire submit to a little sample of international students in order to evaluate the brand perception in each different country.
18 5. QUESTIONNAIRE QUESTIONNAIRE ABOUT PIRELLIS DIGITAL MARKETING Were analyzing Pirellis digital marketing, and in particular its web site, in order to collect some information for evaluating the perception across the different country area. 1 st PART- Personal Dates: 1. Wherere you from? ...... 2. How old are you? ...... 3. Are you a driver? o Yes o No 4. How many times do you spend on the net? ....................
19 2 nd PART- General knowledge: 5. Do you know Pirellis brand? o Yes o No (If No, answer only at the first five questions) 6. Do you know in which sector Pirelli operates? o Yes o No 7. How did you hear about Pirelli? o Tv advertising o Web site o Magazine advertising o Sport Media 8. Do you consider Pirelli as a top brand? o Yes o No 9. Which is your perception about Pirelli? (1=worse; 9=very good) 1 2 3 4 5 6 7 8 9
20 10. 3 rd PART- Overall satisfaction: 11. What is your overall satisfaction rating with Pirelli (responsiveness, professionalism, understanding of customer needs)? o Very satisfied o Somewhat satisfied o Neither satisfied nor dissatisfied o Somewhat dissatisfied o Very dissatisfied 12. How satisfied are you with the characteristics of Pirellis tyre? (1=very dissatisfied; 9=very satisfied) Quality 1 2 3 4 5 6 7 8 9
Purchase experience 1 2 3 4 5 6 7 8 9
Usage/Performance experience 1 2 3 4 5 6 7 8 9
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13. What is your overall satisfaction with Pirellis ability to keep you informed about any product on the web site? o Very satisfied o Somewhat satisfied o Neither satisfied nor dissatisfied o Somewhat dissatisfied o Very dissatisfied 14. Thinking of similar products offered by other companies, how would you compare Pirellis product offered to them? o Much better o Somewhat better o About the same o Somewhat worse o Much worse 4 th PART- Efficacy: 15. How much are the following characteristics important for you: Updated web site
22 1 2 3 4 5 6 7 8 9
Tutorial video 1 2 3 4 5 6 7 8 9
Advertising video 1 2 3 4 5 6 7 8 9
Online contests 1 2 3 4 5 6 7 8 9
Online e-couponing 1 2 3 4 5 6 7 8 9
Online shop 1 2 3 4 5 6 7 8 9
Online customer services 1 2 3 4 5 6 7 8 9
Forum
23 1 2 3 4 5 6 7 8 9
16. Do you think that on Pirelli's website it's possible find all the necessary information? o Yes o No 17. Which is your general impression about Pirellis web site? o Negative o Quite positive o Positive 18. What do you think about Pirellis behavior compared with new digital technologies? o Really good o Good o Quite good o Not really good o Not good
24 19. Do you think that the digital technologies increase the brand perception? o Yes o No 20. How much do you like the structure of Pirellis web site? (1=dont like; 9=I really like it) 1 2 3 4 5 6 7 8 9 21. 22. In your opinion, is the Pirelli's website user-friendly? o Yes o No 23. Are you persuaded to buy a new product after the website's vision?(1=none; 9= very persuaded) 1 2 3 4 5 6 7 8 9 24.
The questionnaire is over. Thanks for your kindness.
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6. RESULTS QUESTIONNAIRE ANALYSIS As we said before, we have distributed about 43 questionnaire and now we going to analyze the principal results.
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Personal Dates The analysis of results, shows us a trade-off between italian and foreign students, with an average of age of 22.44 years old, and so we can consider the target quietly relevant. About personal dates, the most important variable to study is Driver: in fact, our cluster is composed by drivers for the 99%, and for that we can conjecture that all of they are informed about automotive industry.
General knowledge About the 43 observation, only 31of them knows Pirellis brand: but weve to say that most of NO answers comes from foreign students, who couldnt know the firm, because its not the only one which operate in the tyres sector. Interesting is understand also, that a 1% of the contact didnt consider Pirelli as a top brand: that can be originated due to a negative purchase and usage experience about Italian firms products.
27 What we can state is that the Perception of Pirellis brand is good, with an average of 7.03 on 9, and this underline and strengthens the data previously analyzed. To conclude this area of analysis, weve to say how the advertising doesnt predominate only in one channel, but it has an homogeneous efficacy on all of them (magazines, web, sport media).
Overall Satisfaction About Overall Satisfaction, we have to say how its quietly good respect to the three variables (Quality, Purchase experience and Usage experience), with an average between 6/7 on 9: this means that the products and the services sells by Pirelli are positively perceived, and not only by the sensorial point of view, but also by an effective purchase and usage experience. This results reinforce the general perception underlined in General Knowledge.
Efficacy What the studied sample shown us, is that the importance of principal digitals marketing components are between 6 and 7 on 9, and the evaluation about Pirellis digital satisfaction is about 5: that means how Pirelli control well digitals technologies, and in particular the web site, but also how it can increase intrinsic efficacy of this channel, that doesnt respond well to customers demand. After a general studies and analysis on results of questionnaire, we will deepen some peculiarity and we will studied it respect the strategic countries.
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Final Consideration Based on the obtained results, following a first qualitative analysis of the datas, in our opinion it will be appropriate that Pirelli will improve the efficacy of its web site, particular based on the penetration in each foreign markets. It will be opportune to invest and work much more on the purpose of personalize/specific offers for the different countries, taken into consideration some factors like culture, costumers behavior, religion and other, because every country is different from others based on these principal aspect. Starting with the positioning, Pirelli would adopt the most suitable strategy as Local Customer Culture Positioning: and so evaluate all the critical local factors such as local culture, local consumption, local needs and so on. We are also supporting the possibility that Pirelli have to try to change from a global marketing to a Multinational marketing; so switch from a standardize offer for all different countries, to an organization which gives much more responsibility to all the local subsidiaries: that take the main marketing decisions and create specific personalized offer. All of this things will improve the perception, and following the sales and the range of business around the world; so one choice can be the delocalization of the production and the marketing functions of Pirelli in the different geographical areas, which are strategic for the company.
29 For sure this could be realize through large investment, but some resources could be available thanks to the partnership with F1 for who Pirelli is the only supplier of tyre. The key of a real success should be an improvement on digital communication.
7. CONCLUSIONS As we said before we strongly recommend Pirelli to increase the efficacy of its web site and to do so we think that Pirelli has to invest in differentiating its offer within each country. This objective has to be reached setting a new business strategy, moving from a Global marketing view that implies standardized plans for different environments to an International marketing view which instead enables specific and localized plans. If Pirelli will succeed in applying this new strategy for sure it will be able to satisfy more people and get better economic results.