Summary of the Article: Sub-Brands & Barum Tires – A Strategic Success
This article discusses the strategic use of sub-brands by large manufacturers, using Barum tires (owned by Continental AG) as a prime example. Here’s a breakdown of the key takeaways:
* The Sub-Brand Strategy: Large companies create sub-brands (or “second lines”) to target different market segments,especially those seeking more affordable options without sacrificing all quality. This protects the premium brand’s image while expanding market reach. Think of it like a luxury brand offering a casual line.
* Barum & Continental: Barum, a Czech brand established in 1948, became part of Continental AG in 1992. Continental provides Barum with its technology, manufacturing standards, and quality control, resulting in a reliable product at a lower price point.
* Barum’s Positioning: Barum is positioned as offering “Good tires. Attractive prices.” – a balance of quality, safety, and affordability.
* Unique Advantage – Winter tires: Unlike many “second lines,” Barum is allowed to produce winter tires, showcasing Continental’s confidence in their capabilities.
* Benefits of Choosing Barum:
* Cost-Effective: Lower price than premium tires.
* Reliability & Safety: Manufactured in Continental factories with strict quality control.
* Longevity & Mileage: Often boasts excellent abrasion resistance and potential for high mileage (e.g., the Bravuris 6 model).
* Modern Features: includes models suitable for electric vehicles (EV designation).
* Perhaps Better Than Used Premium: New budget tires like Barum offer warranties and known history, unlike used premium tires.
* Mutual Benefit: the partnership benefits both Continental (understanding the budget market) and Barum (access to advanced technology).
In essence, the article argues that Barum is a successful example of a sub-brand strategy, offering consumers a smart alternative to premium tires without compromising on essential qualities like safety and durability.
