LEADING BRANDS PROFILE
CEAT
Q: Could you outline the brand’s history?
A: CEAT is a renowned international tyre brand present in over 130 countries and has a rich heritage of more than 100 years. CEAT was introduced to Sri Lanka in 1992 through a joint venture between CEAT India and Associated Motorways (AMW). Today, it is a joint venture between CEAT India and Kelani Tyres.
The brand is a dominant force in Sri Lanka’s tyre market with more than a 50 percent market share. It has won accolades such as the most valuable brand in the motorcar segment and is among the top five in terms of brand strength, as ranked in the 2021 edition of the Brands Annual.
Our dealer loyalty is also one of CEAT’s biggest strengths – we have 600 dealers in the country who help us secure a dominant coverage; and we run one of the best loyalty programmes in the industry to reward them.
As a local manufacturer, we have been able to adapt to global trends easily in comparison with other international brands in Sri Lanka. The backing we receive from CEAT India’s R&D team is also a huge source of strength for us.
Our brand equity among target audiences remains remarkably high with over 90 percent brand awareness across all the categories.
CEAT is among the top 50 most valuable brands in the country, as ranked by Brand Finance in 2021. It was assigned a brand value of Rs. 2,024 million for 2021, which reflected a remarkable 46 percent appreciation over the previous year.
Q: What is your assessment of the impact of the COVID-19 pandemic on brands and branding?
A: The pandemic could have a negative impact on brands that aren’t agile enough to respond to the new challenges. A successful brand like CEAT can anticipate and meet the needs of its customers.
It’s been a difficult time for us in business with increasing raw material prices, production stoppages due to COVID-19 and the depletion of foreign currency reserves.
However, we have worked hard to provide comfort to consumers through our product offerings while contributing to the economic prosperity of the country by increasing our output in these challenging times.
We have also looked at innovative ways of using digital mediums in our operational activities. A virtual race titled ‘CEAT e-shift’ was organised in 2021 to connect with motor sports enthusiasts in the absence of regular racing events.
Further, we’ve invested in technology to provide customers with the highest level of comfort, safety, mileage and fuel economy from our products. Our knowledge of the local terrain and international experience has helped CEAT remain a preferred choice even during these demanding times.
Q: What role can brand investments play in accelerating business recovery in the prevailing corporate environment?
A: We understood that we had to invest substantially to increase our production capacity, in order to cater to the increased demand in the local market due to prevailing conditions. We implemented a series of capacity enhancement activities in our radial and motorcycle categories in 2020 and 2021.
In addition, CEAT continues to invest in improving product quality. We have invested over Rs. 2 billion for this purpose in order to deliver optimal levels of product performance, thereby accelerating business recovery.
We also continue to invest in building our brand equity to maintain resilience and create brand affinity. Various activities are conducted to engage with target audiences and stakeholders across the country.
The company has always been a responsible corporate citizen. Our CSR initiatives (under the ‘CEAT Cares’ banner) have helped many social and environmental causes. We have made significant contributions to support institutions that are fighting a battle against the pandemic. Distributing road safety signs to schools was recommenced across the country.
Regular brand investments play a critical role in sustaining a healthy relationship with customers.
Q: How important is marketing in creating brand value?
A: Marketing plays a significant role in creating brand value by anticipating, identifying and satisfying consumer needs.
This requires insights into customer requirements through continuous research, data driven decision making and the launch of new products to address gaps in the market.
CEAT assures quality, reliability and value for money. We are committed to improving the brand, in terms of our product offerings, to ensure excellent quality with impeccable aesthetics.
Furthermore, we consistently engage with dealers who are key stakeholders of the business. We believe in creating long-term relationships to strengthen the brand.
