Regional Strategy: Russia



NAFTA
LATAM
EUROPE
MEAI
RUSSIA
APAC


Market overview

Gradual recovery of economic activities starting from 2014. The anticipated stabilization of oil and natural gas prices are likely to keep the average growth rate at 3.5% per year between 2014 and 2017.


Vehicle parc

The number of vehicles in use is growing (+3.8% CAGR 2013-2017), with an Increasing presence of foreign Brands: 60%, the weight – imports + local production – over the total in 2017.



Tyre market

The market is expanding and the incidence of top-of-the-range Tyres over the total is growing: 2013-17 CAGR of A and B segments at 6.8% and 6.6%, respectively, and segment C at 0.5% +8.2%, the 2013-17 CAGR of Premium demand, 4.1% the overall market.


Strategy

Pirelli in Russia

  • Player operating in all market segments (A, B, C);
  • 10% share of the Premium market;
  • Over 650 POSs, 560 of which with Pirelli qualified support;
  • 2 plants, with an overall capacity of 8 million pieces (6 mln pcs in Kirov ≤16”; 2 mln pcs in Voronez ≥17”);
  • 4% is the Region’s contribution to the Group’s revenues.

TARGET: RELAUNCHING THE REGION BY TRIPLING SALES IN 2017 AND POSITIONING AMONG THE LEADERS OF THE PREMIUM WINTER NORDIC SEGMENT


  • Widening of the product range and of the commercial offering: doubling of studded products in 2014 (Ice Zero, New Formula Ice lines); launch of a thoroughly renewed Nordic Friction line in 2015, designed specifically for Russia/Nordics;
  • Partnership and synergies with the major Premium car makers (sales doubled in 2016 vs. 2012);
  • Development of the sales network: at least 50 new POSs per year starting from 2014 (+55% POSs in 2016 vs. 2012); strengthening of partnerships with car dealers (2014 vs. 2013: 2x share of wallet; 2016: first or second Brand in the channel), increase of our Shelf presence (2016: ranking among the first 3 Brands both in the Summer and in the Winter markets);
  • Optimization of the production footprint: one plant in Voronez, the excellence centre for Premium Winter Nordic High Technology Tyres and Premium OE; one high-efficient and flexible plant in Kirov for the Medium segment able to promptly respond to market requests.

2013-2016 Targets


 

Last revised: 19 Dec 2013