Lakshmi Narayanan B on how IPL is reinforcing CEAT’s presence in Indian households

From its humble beginnings in 1924 Turin, Italy, where Virginio Bruni Tedeschi first envisioned Cavi Elettrici e Affini Torino, CEAT’s journey has been one of remarkable transformation. Though its roots were planted in Italian soil, a twist of fate and a surge of entrepreneurial spirit shifted its destiny eastward. Now, CEAT pulses at the very heart of India’s dynamic automobile industry, a testament to resilience and adaptation. What began as a dream in a distant land has evolved into an integral part of the nation’s automotive landscape, proving that even the most unexpected detours can lead to extraordinary destinations.

In this interaction with Adgully, Lakshmi Narayanan B, Chief Marketing Officer, CEAT Ltd, peels back the rubber to reveal the company’s strategic roadmap for navigating the dynamic tyre and automobile industries. He discusses the shifting consumer landscape, where performance and comfort collide, and how CEAT is meeting these diverse demands with innovative product lines. From the roar of IPL stadiums, where CEAT strategically positions its brand, to the burgeoning digital sphere, Narayanan outlines the company’s evolving media mix and its increasing focus on digital platforms. He also touches upon CEAT’s long-standing association with sports, both in India and globally, and shares his insights on the future of sports marketing in the country, particularly the rising interest in adventure sports. Get ready for an insightful conversation that delves into CEAT’s marketing strategies, its global aspirations, and its vision for the road ahead.

Marketing Trends that will dominate Tyre and Automobile Industry

Consumers are increasingly discerning about tire selection, aligning products with specific vehicle needs. We’re seeing a surge in demand for application-specific tires. Simultaneously, the rise of high-performance vehicles, particularly sports SUVs, is driving the need for ultra-high-performance tires, including Z-rated, those with Calm technology, and run-flats. This segment’s sensitivity to performance is growing.

Furthermore, the Indian market values comfort, especially for chauffeur-driven vehicles. Therefore, technologies that balance performance and comfort, like our Calm technology, are becoming crucial.

In essence, two key trends are emerging: tire pattern as a performance differentiator, and the growing importance of ultra-high-performance tires driven by evolving vehicle types.

CEAT’s media mix for this year

Our marketing strategy is heavily weighted towards sports, with our Tata IPL partnership being a significant investment. Traditional media continues to be a core component, reflecting its established reach. However, we’re experiencing substantial growth in the digital space. We foresee digital and social media platforms representing 30-35% of our overall marketing budget in the near future, effectively doubling our current digital allocation. Out-of-home advertising, while utilized, is primarily reserved for thematic campaigns, particularly around product launches, rather than for broader brand salience. We haven’t explored its use for general awareness yet, though it remains a potential avenue for future consideration.

Association with IPL as official strategic timeout partner and how it aligns with the brand

The recently secured five-year, Rs 2.4 billion agreement for the strategic timeout sponsorship offers us two key advantages. Firstly, it significantly reinforces our brand’s presence within Indian households. This widespread recognition is a direct result of our sustained investment in cricket over the past three decades, with a particularly strong emphasis on the IPL over the last ten years. Secondly, this sponsorship plays a crucial role in achieving our global aspirations. The Indian diaspora forms a substantial market segment across our extensive network, which spans over 100 countries. In each of these regions, brand salience is paramount. When members of the Indian diaspora recognize our brand’s association with a prominent event like the IPL, it significantly increases their inclination to consider our products.

We also have very strong global aspirations, where we employ a country-specific sports investment strategy. In India, we leverage cricket’s global reach. In Europe, we’ve invested in football through partnerships with Bayer Leverkusen in Germany and Torino Football Club in Italy. We intend to maintain these investments, with future decisions considered in the coming years.

Ad budget for this year

CEAT doesn’t have a fixed ad budget for a year; it differs from quarter-to-quarter. In the innovation space, such as the tyre industry, maintaining agility is crucial. Setting fixed financial targets would hinder our ability to respond effectively to changing market conditions.

Future of Sports marketing in India

To elevate sports marketing, we need to consider the distinct dynamics of traditional sports and the emerging field of adventure sports. While traditional sports continue to hold a strong position, adventure sports are poised for steady growth. Their ability to deliver immersive experiences and forge a closer connection with participants will be vital in shaping the future of the Indian sports market. The IPL has undeniably revolutionized cricket, and the next five years are set to be a period of significant evolution across the entire sports spectrum.

Also Read: Lakshmi Narayanan B decodes CEAT's innovative approach to cricket marketing