Problem Statement:
With the development of Aquatread (AT), a premium differentiated tire intended for the broadline, replacement market; Goodyear (GY) must reassess its competitive position and distribution systems in the North American tire market. The GY is currently a market leader in the replacement market with 15% market share (Sales of 22.8MM units). GY¡¯s marketing strategy, in particular, the launch of AT, must be examined in the context of evolving consumer buying patterns and distribution channels, as well as alignment with their business strategy of differentiating GY through their brand. The key marketing decisions to be made are should GY launch AT, should GY expanded its distribution and whether or not AT is to be included in this expansion.
The Market for Replacement Tires.
The US replacement tire industry (152MM units) had seen; stagnant growth (5 yr CAGR 1.1%), declining prices (25% over 10 years), foreign imports, excess capacity, brand consolidation and longer tire life. These factors have contributed to a shift in the market place towards a competitive, commodity- like market. The major brands account for 36% of the market with Private Label (PL) having the largest share (40%). The distribution channels in the market have moved towards independent dealers (67%) and large retail distribution (19%). Exhibit 1 details the market share and price levels within channels as well as the level of service consumers receive.
Consumers and Segmentation Analysis:
50% of consumer purchases are made the same day consumers are aware of the need to replace tires. Purchases are likely to be made at convenient locations with little research and only 1-2 tires replaced. For planned purchases, the primary performance...
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...ience in this channel through its Kelly brand and it is preferable to cannibalize sales to GY products. Threats to this wider distribution are GY¡¯s relationship with the independent retailers and potential erosion of its brand. However, there is no other major brand distributing solely in the independent channel so retailers have no choice and sales are being lost to PL mostly in this channel. In addition many independents are moving towards stocking other brands so GY needs to move into new channels. GY could also only offer a limited range in the mass merchandisers, unlike the retailers who have the full line plus the new AT. The media campaign and introduction of AT should provide sufficient boost to GY¡¯s brand equity. Longer term (after 1 year), GY could consider including AT in the mass merchandiser but GY¡¯s market position would need to be re-examined.
There will be more experiential marketing towards the beginning of a new line extension/product, to promote brand switching from the competition products while creating brand awareness at the same time based on the value creation of each new line/product. The reduction in advertising budget due to high brand awareness of Allround will help us allocate more financial resources towards experiential marketing. As a team, we agreed that this was the best way to draw in more customers with heavily affecting the bottom
At the end of the year of 2012, which saw an increase in consumer buying behavior, General Mill’s sales increased 12% from the previous year of 2011. This was caused from a strong performance overseas in which increased by 46% year after year. US retail increased only by 3% which is a small growth. In addition, the US Retail segment contributes more than 60% of General Mills...
Do you want to enhance the performance of your truck? The Wanda ATV tires are a great choice if you want a solution to traverse mud, rocks, desert and other dirt trails. However, you should ensure you get the best Wanda ATV tires for ultimate performance. Also, not all tires suit your budget, but these are cheap Wanda ATV tires that can give your truck enough power to handle your tasks.
Although Lafley has had success, the underlying problem remains. How will Lafley return P&G to its rightful place in Corporate America? P&G's solution to its problems is through product line extensions, expansion into non-premium brands, as well as acquisitions, licensing, reinforcing market orientation through consumer focus, and outsourcing. This recommendation was based on following items;
The tire industry is divided into two end-use markets: The original equipment tire market (OEM) and the replacement tire market. The replacement tire market is of most importance in this case because that is Sears target market. The two markets are broken down as follows:
The successful cable TV network “The Fashion Channel” founded in 1996 is now being faced with an intensely fast growing competitive environment. In order to strengthen the company’s brand with viewers and advertisers TFC should position their new marketing strategy towards Fashionistas and Planners & Shoppers. By focusing on dual segmentation, this scenario positions itself in a specific demographic of females that can offer great benefits. The opportunity TFC can expect includes increasing their average ratings, along with increases in their average CPM, and an approximate 40% increase in their margins.
The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: place, promotion, product and price. UA’s four P’s match their target market perfectly. UA uses an ease of reach approach in placing its products. You can purchase items in stores or online, prices being somewhat cheaper than the competition but surely providing a deal for its consumers for the quality and performance given for their dollar. UA has also expanded into brand stores which provide another offering to consumers. The company uses a targeted market approach to save expenses related to extensive research. Its well defined target markets include the Hispanic market which has exceeds all ethnicities for its interest in fitness wear. Its international expansion is helping place its products within easy reach of buyers throughout the world.
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
In order to deal with the LOP situation, KDH should look for other markets to carry the brand. The company should approach other stores such as Target to ensure the brand is still visible to its customers. In addition, KDH should be ready to give up its exclusivity rights to give LOP the freedom to move into wider markets.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.
Before Lafley took over for Jager, P&G was stretched to the max, haplessly wasting away resources and opportunities with an overcomplicated business strategy. P&G was raising prices on their best selling brands to cover for missed sales and high production costs for new brands that failed to be a successful [Lafley, 2003]. They had hired too many employees and were involved in several investments that were unprofitable. P&G had not had a hit product since the launch of ALWAYS feminine products in the 1980’s and each additional product flop only stretched their recourses thinner and thinner. Costs were high and moral low with employees not afraid to voice their lacking confidence with P&G’s leadership and direction. Subsidiaries were blaming corporate for their missed earnings and visa versa [Lafley, 2003]. Strategies between the brands at P&G clashed and each were out to safe guard their own interests. The prices of their consumer products were too high while the company failed to deliver customer satisfaction. These factors distracted them from what had originally made them successful – being an industry leader in innovation (Markels, 2006).
Consumers can purchase the goods through diverse channels and this will raise consciousness in the customers’ mind and make the loyalty. The higher the channel, the lower the price, it is going to occur all kinds of customers. Thus, enterprises have to consider their distribution channel architecture. They need to decide that channel must be applied an identical to their brand
The objective and aim of this paper is to provide details on the proposed solutions and interventions that will improve the brand management strategy of Procter & Gamble, given the concerns raised in the first paper. As a result of the diversifying consumer needs and increased competition, the product centric method of P&G might change its brand management approach from product promotion to driving up consumer value perception and changing brand portfolios in order to increase the level of consumer loyalty and traction on P&G products (Di Somma, “Why Brand Management will replace Marketing”). The format of this paper is designed to discuss the identified issues and challenges in the area of P&G brand management while also providing solutions
They wanted to try and introduce the product into two different markets: the industrial and business markets. They had a potential market size of 7 million vehicles and they want to market to the snow belt of America. The snow-belt represents about 50% of the nation. With that being said, the snow-belt market size would be 3.5 million vehicles. As a basis for forecasting the products sales, Webster had reviewed a study about winter driving habits of U.S. drivers. This study indicated that 18% of the cars in the snow-belt area got stuck at least 1 time during the winter. It also indicated that the average driver got stuck 1.6 times per winter. He knew that the study was several years old so he expected those numbers to be higher because of the increase in the production of smaller, lighter cars.