The Sime Tyres market: with particular reference to the car replacement tyre’s customers in Alor Setar, Kedah Darul Aman

Sime Tyres International (M) Sdn. Bhd. Is a member of the Sime Darby Group of companies established in 1979 for producing new tyres for passenger car, light commercial and commercial vehicles, 4- wheel vehicles, trucks and buses and also motorcycles. In preparation for AFTA and globalization, Sime Darby has signed up a joint venture agreement with Continental AG for the manufacturing and marketing for Continental, STI and Simex Tyres on 26 February 2003. Sime Darby’s tyre activities (STI and DMIB), will replace Merit Manufacturing Sdn. Bhd. as described in STI and DMIB merger. Today, Continental AG holds 51% equity and Sime Darby holds 49% that make Continental AG will lead Sime Tyres International (M) Sdn. Bhd. from now on. This report indicate the car replacement tyres used by the end user to analyse the Sime Tyres market with particular reference to car replacemet tyres’ customers in Alor Star, Kedah Darul Aman compared to its local competitors which are Goodyear, Bridgestone, Silverstone, Dunlop, Michelin, Sumitomo and others such as Pirelli and Hankook. In order to gain information, a survey form is used. About 110 questionnaires were distributed by using simple random sampling on the respondents. The respondents were selected at the dealer’s outlets surrounding Alor Star, Kedah as Sime Tyres International (M) Sdn. Bhd. is situated in Alor Star. This is because, perhaps the respondents are aware of Sime Tyres. Secondary data was gathered within Sime Tyres itself, reference books from library and personal collections, articles from magazines, newspapers and the Internet. The questionnaire was designed into 5 sections on personal details, general information, selection of tyres, selection of dealers and recommendations. In selection of tyres, the respondents have to choose one of five categories scale are given which are number 1 to number 5. Number 1 is scaled as “Less Important”, number 2 as “A Little Important”, number 3 as “Average”, number 4 as “Important” and number 5 as “ Most Important”. The subjects used are the speed rating, product quality, product pricing, durability and other aspects of tyre performances (comfort of ride, noise and vibration), brand name, recommendation by dealers and promotion. In selection of dealers, the respondents have to do the same as in selection of tyres that is they have to rate the subjects given from 1 to 5. The subjects are dealers, product quality, product pricing, geographical factor, product training, helpful staff at dealer’s outlet and speed of response to enquiries/ problems. The findings show that a large number of the respondents are using Sime Tyres. There are 40 percent out of 100 percent of the respondents who are using passenger car tyres. From the researchers observation, Sime Tyres lack of promotional activities compared to its competitors such as Goodyear, Silverstone and Bridgestone. The respondents also have almost same view when thy where asked to choose scale from number 1 to 5 on the selection of tyres and selection of dealers. Most of the respondents said that the most important criteria that influence their selection of tyres are the product quality and other aspect of tyre performances like comfort of ride, noise and vibration. The respondents agreed that helpful staff at the dealers’ outlets led them in selection of dealers. This may be because that the customers like dealers who are helpful and ready to provide services required by the customers. This is followed by the product pricing at the dealers’ outlets and the speed of response to enquiries by the customers. The following study, however, has also come out with several recommendations and suggestions that Sime Tyres can adopt to overcome those problem occurs. Some of the recommendations were increasing promotions besides improving quality of products to enable Sime Tyres to set the price equivalent with the quality of the products. The other recommendations were maintaining a good relationship as a supplier of Original Equipment manufacturers fitment with car producers or assemblers and dealers. Sime Tyres should also allow the customers to explore and know more about Sime Tyres because by doing this, Sime Tyres will be able to attract more potential users. The duration of conducting this study is about 3 months starts from June 2004 until the end of August 2004. The distribution of the questionnaire takes about two weeks and the rate of response to this study is about 91 percent.