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  • Essay / Goodyear Tires Case Study - 1229

    Case Study: Goodyear: The Launch of the AQuatredAlthough Goodyear is the market leader in the US passenger tire market with a 15% market share, the company nonetheless needed to be very careful in everything that was done because the competition was so intense. There were so many players in the industry, both branded and private label. Although each of them had less than 10% market share, the second largest, Michelin, was growing very quickly, both in the replacement and OEM markets. Furthermore, private branding had become the biggest threat to all tire brands since many branded tire owners intended to replace their tires with private brands. • Changes in consumer preferences According to the Goodyear study, 45% of tire buyers believed that price was the most important factor when purchasing tires, followed by 33% for retail locations and 22% for the brand. Additionally, Goodyear has segmented consumers into four categories: price-constrained buyers (22%), commodity buyers (37%), value-oriented buyers (18%), and quality buyers (23%). Recently, more and more buyers have become buyers of raw materials. When Goodyear launched a survey asking which tire brand owners intended to buy next, Goodyear had the highest percentage among price-constrained buyers (16%) and commodity buyers ( 10%), while 24% of value buyers and 22% of quality buyers intended to purchase Michelin tires. This meant that Michelin consumers were more loyal to the brand than Goodyear consumers. • Goodyear Distribution Channels There were three main distribution channels for Goodyear: 4,400 independent dealers accounted for 50% of sales, 1,047 manufacturer-owned outlets generated 27% of sales, and the 600 franchised dealers accounted for 8 Additional % of turnover. In comparison to the industry statistics which are in the middle of paper......the company might have too many promotions. Finally, consumers would not come to buy Goodyear tires at full price and this could also affect the company's image. • Goodyear needed a loyalty program to establish and maintain relationships with consumers as early as possible before they switch to other brand tires, such as Michelin. , or private label tires that were priced lower than Goodyear.• The company should find a way to compromise with independent dealers regarding competition in these areas, while expanding more distribution channels and finding more new retail formats, such as Just Tires.• In order to To launch Aquatred effectively, Goodyear needed the cooperation of all departments, especially the marketing department. Integrated marketing communication was very important to create customer awareness. It should focus on the words “innovation” and “safety in wet conditions ».”.