Regional strategy: Europe


NAFTA
LATAM
EUROPE
MEAI
RUSSIA
APAC

Market overview

According to economic forecasts for the three years between 2014 and 2017, Europe is likely to experience a gradual recovery albeit with a different pace in the various Member States.


Vehicle parc

The Vehicle Parc is forecast to remain approximately stable between 2013 and 2017, with an improving mix towards Premium cars.
Registrations are expected to pick up at an average annual rate of 3.8%, with the Prestige segment increasing at double the speed of the overall market (2013-2017 CAGR +7%).



Tyre market

After the 2012-13 crisis, a gradual recovery is envisaged, with an average rate of 2.6% per year in the 2012-2017 period (+1.5% Truck and Moto). The Premium segment is forecast to keep growing, at three times the rate of the overall market (2013-17 CAGR 7.6% vs. 2.6%), reaching an incidence of 26% of total demand in 2017 (+6pp vs. 2013). Growing shift of Original Equipment (OE) toward the Premium segment, which is expected to go from 42% in 2013 to more than 50% in 2017. The Winter market is due to expand at +4% vs a +2.6% rate of the overall market.


Strategy

Pirelli in Europe

  • Partnerships with Premium OEMs (BMW, Mercedes, Audi), with a 20% market share and leadership in Prestige OE (Lamborghini, Maserati, Ferrari, McLaren);
  • #1 as for number of homologated Car products; #1 in the Moto segment
  • Commercial offering in the Replacement segment oriented to the top of the range, with a 15% share of the Premium market
  • Top Brand positioning, fstrong Brand awareness, due, among other things, to Pirelli presence in Motorsport (F1 and Superbike);
  • Sound distribution chain, with 850 POSs on the territory (mostly franchisees);
  • 6 plants for Car Tyre production, mostly for the Premium segment, for the domestic market and exports (2 in Italy, 2 in the UK, 1 in Germany, 1 in Romania);
  • 33% is the Region’s contribution to the Group’s revenues, which makes Europe the second most important Region after LatAm..

TARGET: BECOMING THE REFERENCE PARTNER FOR THE PREMIUM MARKET AND ACHIEVING THE HIGHEST BRAND CONSIDERATION


  • Further consolidation of partnerships with Premium OEMs;
  • Renewal of our Summer/Winter product portfolio; consolidation of the new Premium Truck product range with the introduction of the new Serie 01 (>65% of truck sales in 2017; 50% in 2013);;
  • Defending the Premium retail market through a targeted expansion (geomarketing) of the distribution chain and the development of a new Hard Franchising formula;
  • Reinforcement of Brand consideration and propensity to buy, through targeted investments in the digital channel, CRM tools, F1 and partnerships with key OEMs;
  • Higher production and cost efficiencies.

2013-2016 Targets


 

Last revised: 19 Dec 2013