New Product Innovation

Case Study: Leading Automotive Products Manufacturer

Situation
A leading automotive products manufacturer, the longtime category leader, was desperate for growth: acquisitions and naming strategies were exhausted, and a true new product had not been introduced in over a decade. The manufacturer was thus interested in developing a line of premium-priced new products in the “replacement tire” space, allowing the company to regain share from Michelin and other imports. Meanwhile, the consumer was faced with a well-documented, horrible in-store experience. In attempting to define the target market and identify consumer needs, the company had developed an overly-complicated, 16-segment scheme that was difficult to understand and operationalize.

Solution
MCAworks completed qualitative and quantitative research among luxury and mid-priced car drivers. From the research, we worked with company management to produce a consumer-driven “Needs Hierarchy”. This effort was followed by an iterative process of seeking consumer response to needs-defined replacement tire concepts. Critical visual cues and brand name cues were identified and prioritized. As a result, the company developed an umbrella brand that exploited consumer needs regarding safety and durability. Based on MCAworks research, the company introduced two new tire lines—along with relevant branding, sub-branding, and ingredient branding schemes.

Results
The company’s new branded tire technology was the most successful sell-in to dealers in over 10 years. Its market success is widely credited in the press and on Wall Street as having literally saved the company from acquisition. Moreover, the company’s approach to branding and new product development has been institutionalized and is being used to address other segments and product categories.

Contact John Rosen for more information.