CEAT raises dealer stakes with comprehensive loyalty plan
Launches four-tiered ‘CEAT Privilege Class’ initiative to motivate retail network Sri Lanka’s top tyre brand CEAT has elevated its relationship with the country’s tyre dealers to a new level with the launch of a structured loyalty programme that confers rewards proportionate to the sales they generate for the brand.
Believed to be the first scheme of such depth and scope in the sector, the four-tiered ‘CEAT Privilege Class’ loyalty programme seeks to motivate dealers to achieve and maintain tier targets and to progress upwards, earning greater rewards as they increase sales.
A Rs. 5 billion investment that generated revenues in excess of Rs 10 billion in 2016-17, the India – Sri Lanka joint venture CEAT Kelani Holdings already manufactures nearly half of Sri Lanka’s tyre requirements and is investing another Rs. 3 billion to double production of existing categories and to launch new categories of tyres.
Commenting on this new initiative to reinforce dealer loyalty, CEAT Kelani Managing Director Ravi Dadlani said, “Dealers have always been an integral element of our sales operation and are recognised annually with awards and overseas tours for their contribution to our growth. The launch of a structured loyalty programme is a reflection of how serious we are about building on this relationship in a way that ensures there are always higher rewards for them to aspire to.”
The CEAT Privilege Class scheme is designed with membership tiers of Platinum, Gold, Silver and Bronze, each with its own exclusive benefits. Moving up the membership tiers is governed by privilege points earned within any 12 month period, which are evaluated monthly and members who achieve the required Tier threshold are upgraded as and when they do. This means that dealers can be eligible for upgrades all year round.
Membership of the Platinum, Gold and Silver tiers will qualify dealers for designated rewards such as overseas tours, VVIP privileges at the company’s annual dealer convention, VVIP invitations to CEAT corporate events and designated dedicated customer service personnel, while all tiers have the opportunity to redeem accumulated points for attractive gifts ranging from the latest iphone and Samsung smartphones, Swiss designer wristwatches, designer sunglasses and leather organisers, cosmetics, sound equipment, hotel stays and supermarket vouchers.
CEAT Kelani’s manufacturing operations in Sri Lanka encompass the radial, commercial, motorcycle, three-wheeler and agricultural machinery segments. The brand accounts for market shares of 32 percent in the radial segment, 51 per cent in the truck/light truck category, 54 per cent in the 3-Wheeler segment, 23 per cent in the motorcycle segment and 72 per cent in the agricultural tyre category. About a third of CEAT’S production is exported.
A new investment of Rs 3 billion over the next two years will see the establishment of a state-ofthe-art plant in Kelaniya for the manufacture of Truck Bus Radials (TBRS), the first plant of its kind in Sri Lanka, the expansion of the existing cutting-edge passenger car radial tyre plant at the same location to double production, and the doubling of CEAT Kelani’s motorcycle tyre production.
The company also plans to increase its focus on developing products based on functional and performance platforms such as fuel saving, long tyre life and premier performance.