Strategic Marketing about Michelin company

1. STRATEGICISSUES AND PROBLEMS
-Customers are reluctant to sign contracts:
-Customersunderstand the service but they do not understand theextra values which can be added by MFS´s services
-Internal conflict
-Same target market for different company sectors-> no clear segmentation (same market for the tires and for the MFS)
-Service jobs are sometimes poorlyperformed
-Variability oftheservices: Roll-outmodel isdependedon thirdparty serviceperformance
-inefficientforthecostsand explanationoftheservicevaluesforthecustomer

2. Efficiency
-Out sourcing tire policy compliance
-Optimizing resources
Productivity
-Emergency road assistance
-Increased production time
-Vehicle readiness
Visibility
-Usage/assets monitoring
-Safety alerts
-Scoring/reporting
Sustainability
-CO2 emission
-Fuel Consumption
-Recycling
Analysis
•Long –lasting customer relationship
•Differentiation from competitors
•Difficult to see extra value
•Higher upfront costs
•Increased dependence on Michelin
•High switching cost
•Problem of moral hazard
•Complex cost structure
•Difficult to monitor service provider
•Competition with traditional sales force
•Better cost control
•Benefit from Michelin innovation
•Reliance on Michelin reputation
•Concentration only on own business
Pros
Cons
Michelin
Customers
-CUSTOMER NEEDS ANALYSIS:
Efficiency
Productivity
Visibility
Sustainability
-Long-lasting profitablerelationships

3. RECOMMENDATIONS
1. ChangeoftheEuropeanroll-outmodel intothemodel alreadyexistingin UK and France -> direct contactwiththecustomers-> controlovertheprovidedservicesand thechanceofbuildinga partneringrelationship
-Michelin will avoid the costs of constant monitoring the service quality provided by third parties (also no contracts and payments to SP per intervention)
2. Eco Friendliness
-To push on the importance of the lower gas consumption
-Cost of fuel
-Lower CO2impact
-Nationallawsabout pollution
-Good external image of the company
3. Goodhiringand trainingproceduresinvestment->reductionofcustomersperceptionsofrisk becauseofvariability oftheprovidedservice
-Standardizationoftheservice-performance processthroughouttheorganization
-Monitoring customersatisfaction