Problem Statement:With the development of the Aquatread (AT), a premium differentiated tire aimed at the general replacement market; Goodyear (GY) must reassess its competitive position and distribution systems in the North American tire market. The GY is currently the leader in the replacement market with 15% market share (unit sales of 22.8 million). GY's marketing strategy, particularly the launch of AT, should be viewed in the context of changing consumer purchasing patterns and distribution channels, as well as its alignment with its business strategy aimed at differentiating GY through its brand. The key marketing decisions to be made are: should GY launch AT, should GY expand its distribution, and whether or not AT should be included in this expansion. The replacement tire market. The US replacement tire industry (152mm units) has experienced; stagnant growth (5-year CAGR of 1.1%), falling prices (25% over 10 years), foreign imports, excess capacity, brand consolidation and longer tire life. These factors have contributed to a market evolution towards a competitive, commodity-like market. Major brands represent 36% of the market, with Private Label (PL) holding the largest share (40%). The market's distribution channels are oriented towards independent resellers (67%) and mass distribution (19%). Table 1 details market share and price levels within channels as well as the level of service consumers receive. Consumer and Segmentation Analysis: 50% of consumer purchases are made on the same day consumers are aware of the need for tire replacement. Purchases will likely be made in convenient locations with little research and only 1-2 tires replaced. For planned purchases, the primary performance......middle of paper......ience in this channel through its Kelly brand and it is best to cannibalize sales to GY products. Threats to this broader distribution are GY's relationships with independent retailers and the potential erosion of its brand. However, there are no other major brands distributing solely in the independent channel, so retailers have no choice and sales are lost to PL, primarily in this channel. In addition, many independents are moving to other brands, so GY must turn to new channels. GY could also only offer a limited range in supermarkets, unlike retailers who offer the full range as well as the new AT. The media campaign and introduction of AT are expected to provide sufficient boost to GY's brand equity. In the longer term (after one year), GY may consider including AT in the FMCG sector, but GY's position in the market should be re-examined..