In the first half of 2009, China's automobile industry experienced a thriving production and sales trend, ranking first in global auto sales with 6.0988 million vehicles sold in just six months. As an essential part of the automotive industry chain, the tire industry also welcomed a "spring" for its development, achieving significant growth in the second quarter compared to the same period last year. Tan Yukun, Deputy Secretary-General of the Tire Branch of the China Rubber Industry Association, stated, "In the first half of the year, a large number of tire companies achieved a capacity utilization rate of 85% compared to the same period last year; some companies even exceeded their historical highest levels, operating at full capacity."
Facing the enormous business opportunity of substantial growth in the tire industry, Kumho Tires expanded its sales performance and brand influence through influential sports marketing strategies. Taking the recently highly-anticipated Manchester United Asia tour as an example, as a platinum sponsor of Manchester United worldwide, Kumho Tires became the driving force behind Manchester United's visit to Korea. It is reported that the exclusive naming sponsorship of Manchester United’s Korea tour in 2007 brought Kumho Tires extremely high media exposure and achieved a communication effect worth nearly 1.1 billion RMB. This time, the estimated communication effect of the sponsorship activity will exceed 1.6 billion RMB.
In terms of sales, the growth effect of Kumho Tires' global marketing network is more evident. By comparing sales performance before and after sponsorship, Kumho Tires' sales volume in the UK in 2008 increased by as much as 56.5% compared to 2006 before the alliance. Meanwhile, in China, which has the most Manchester United fans in the world, leveraging the ultra-high popularity of the Manchester United team in China, Kumho Tires' sales volume in the Chinese market in 2008 also achieved a 23% year-on-year increase, playing a huge role in maintaining the top market share position in the Chinese market.
The global operations chief of Kumho Tires indicated that sports marketing is a marketing strategy consistently implemented by Kumho Tires. Manchester United has 300 million fans worldwide, with 190 million fans in China and Southeast Asia alone. The young, vibrant brand image is a common trait between Kumho and Manchester United, and it is also the basis of our cooperation. Kumho Tires sponsoring the Premier League powerhouse Manchester United and becoming a platinum member not only established a high-end brand image for Kumho Tires but also successfully attracted consumer attention, enhancing brand recognition globally and achieving Kumho Tires' unique differentiated high-end marketing strategy.
In addition, Kumho Tires has participated in various well-known global racing events and achieved remarkable results, such as winning the 2007 24 Hours of Le Mans, the Japanese Super GT Championship, and the European Off-road Rally Championship. In the F3 market, Kumho Tires has reached the status of a world-class tire manufacturer, continuously serving as the official tire supplier for the European F3 for 10 years, providing Kumho ECSTA series racing tires. In China, Kumho Tires collaborated with the Ford team in CCC races to win the overall championship in the 2000cc category. The AFR Asian Renault Formula race, known as "China's F1," also designated Kumho Tires as the official supplier. These excellent achievements are attributed to Kumho Tires' investment in motorsport over the past 18 years, fully demonstrating Kumho Tires' technical research and development capabilities and the superior performance of its tire products. Such sports marketing strategies not only strengthen brand promotion but also fully demonstrate the high-tech content of Kumho Tires products, further expanding the brand's influence.
Industry insiders also pointed out that sports events provide tire enterprises with unlimited business opportunities, not only giving companies the chance to reach specific target audiences and form effective interactions with viewers, but also providing an effective marketing platform for showcasing product strength and enhancing brand image during the competition process.