Manchester Business School provides the opportunity for companies to access its MBA students who can bring a fresh approach and the resource to drive their businesses forward through working on projects. This also provides invaluable experience for the students who can immediately apply their learning in a real-life business environment.
Tyres on the Drive (TOTD) is a fast-growing and ambitious company based in the North West. It has taken an entirely innovative approach to the existing tyre retail model, by delivering and fitting new tyres direct to a customers at a significantly lower price. For the consumer, this model offers a much higher service level, convenience and much better value for money.
The business recognised two key challenges it had to overcome to ensure it could achieve its plans of national expansion. The first was identifying its existing customer base and the geographical areas that showed the best growth potential. To support this growth, the business also needed to facilitate a warehouse expansion strategy which reviewed the logistics of the entire operation and supported the plan to open multiple new hubs.
TOTD decided to forge a partnership with Manchester Business School to set the wheels in motion on these plans.
- Marketing project
The consumer analysis project consisted of two different pieces of analysis. The first looked at the postcodes and registration numbers of existing customers, and the second was a customer survey of their customer, economic, household, population and behavioural profile. The findings of each were then compared against national databases, such as the UK Census and the DVLA to pinpoint where the company is performing best against the general population.
- From these results, customers were analysed and divided into three segments to establish the most profitable target segment. From here, geographical regions and districts were analysed to establish the demand for tyres in each area. Building on this, the team identified the best target media to communicate with its customers.
- Logistics project
The second student project was to help develop a plan to open multiple new warehouse hubs across several locations. The first task was to complete a holistic review of TOTD’s current systems, including stock movement, deliveries and cross-docking.
- By analysing the existing process, the company was able to eliminate inefficiencies, ensure best practice and improve current service. To truly test the expansion plan, the project took insights from the marketing project to check the feasibility.
- The marketing project has meant that the TOTD team now understands who their existing customers are.
- Building on this understanding, TOTD has implemented an informed growth strategy that has equipped the business to pinpoint the location of its most profitable potential customer.
- With this information, the company can target its marketing directly towards this audience, which will mean any budget is spent as effectively as possible.
- TOTD has been able to action its expansion programme and has already identified a warehouse in Yorkshire for expansion.
- The business will now identify and acquire sites across its priority locations.
“The work carried out by both students has been of a very high standard and has given us an enormous insight into both our customer base and our logistics. The outcome of both projects has contributed enormously to our expansion plans.”