Although Goodyear was the leader in U.S. passenger tire market with 15% market share, the company still had to be very careful in all things 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% of market share, the second in rank, Michelin, was growing very fast in both replacement and OEM market. Also, the private label had become the biggest threat for all branded tires since many branded tire owners intended to replace their tires with private label.
• Changes in consumer preferences
From Goodyear’s research, 45% of tire buyers thought that price was the most important factor when shopping for tires, followed by 33% for the outlets and 22% for the brand. Also, Goodyear 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 became commodity buyers. When Goodyear launched a survey asked what brand of tires the owners intended to buy the next time, Goodyear had the highest percentage among price-constrained buyers (16%) and commodity buyers (10%), while 24% of value-oriented buyers and 22% of quality buyers intended to buy Michelin tires. This meant that Michelin’s consumers had high loyalty to the brand more than Goodyear’s.
• Goodyear distribution channels
There were three main distribution channels of Goodyear: 4,400 independent dealers accounted for 50% of sales revenues, 1,047 manufacturer-owned outlets generated 27% of sales, and the 600 franchised dealers accounted for another 8% of sales. Comparing to the industry’s statistics that h...
... middle of paper ...
...e company might have too many promotions. Finally, the consumers wouldn’t come to buy Goodyear tires at full price and it could affect company’s image, too.
• Goodyear needed loyalty program to establish and retain relationship with consumers as soon as possible before they switched to other branded tires, like Michelin, or private label tires that had lower price than Goodyear.
• The company should find a way to compromise with independent dealers about competition in the areas, while expand more distribution channels and find more new retail formats, like Just Tires.
• In order to launch Aquatred effectively, Goodyear needed cooperation from every departments, especially marketing department. Integrated marketing communication was very important to create awareness of the customers. It should focus on the word “innovation” and “safety under wet conditions”.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Goodyear Tire and Rubber Company With the competitiveness of the US tire industry in 1992, Goodyear Tire and Rubber Company is reconsidering a proposal from the department store Sears to carry Goodyear Eagle brand tires. With a $38 million loss in 1990 and a change in top-level management in 1991, the Sears proposal from 1989 was being looked at again. These new top-level managers have two decisions to make: whether Sears should carry only the Goodyear Eagle brand or all of Goodyear’s tire line.... [tags: Goodyear Tires Case Study Analysis Marketing]
1866 words (5.3 pages)
- Goodyear Case In 1992, the Goodyear Tire and Rubber Company decided to reconsider the offer from Sears to sell Goodyear's Eagle brand tires. The reasons that Goodyear was contemplating this offer was that Sears was replacing worn out Goodyear tires at a large amount every year. The tires were not being replaced with Goodyear tires because the customers at Sears wanted to replace their tires with the best possible tires that Sears offered, and the Goodyear tires were not in the offering. The company's major options in this decision were whether to sell only the Eagle brand tires or all of the Goodyear tire brands.... [tags: Case Study Tires Business Essays, solution]
846 words (2.4 pages)
- Rubber Tires: Rubber Tires play crucial role in enabling better performance for the vehicles. These are important parts in automobiles, trucks, buses, aircrafts, tractors, industrial machines, shopping carts, bicycles, motorbikes and baby carriages. There are many applications of rubber tires and over the years the demand for this product has been increasing since many new vehicles are launched every day and also there are many number of vehicles which are already in use. Tires are the only point of contact of the vehicles on the road and the intentions of the driver who is driving the vehicles.... [tags: Tire, Tires, Wheel, Synthetic rubber]
1451 words (4.1 pages)
- Case Study: Effective Managerial Leadership The successful implementation of a public policy to solve a social problem will greatly depend on the abilities of a public administrator. Furthermore, numerous case studies can show examples of how a successful public agency administrator can achieve goals through dedication and commitment. The following discussion will present a thorough analysis of main political, social, and economic forces that affected Dr. Gayle in establishing legislation to fight the AIDS epidemic as is presented in the case study Managing Across Boundaries: A Case Study of Dr.... [tags: Case Study]
1201 words (3.4 pages)
- Case Study: A thirty six year old male has developed severe muscle weakness throughout the body. The condition began fifteen months ago with a left foot drop and within a year, he described difficulty with speech and swallowing, muscle twitching and cramping, and muscular atrophy throughout the upper and lower limbs. Within the last two months, his breathing has become more difficult, and there has been a noticeable difference in his voice. Prior to the fifteen months, he presented little to no symptoms.... [tags: Case Study]
1519 words (4.3 pages)
- Challenges Facing Goodyear Problem Statement There are several challenges facing Goodyear in the current environment. Our sales have leveled off in the past few years and we need to increase our market share in order to improve these numbers. Our debt is high and our interest payments are eating away at our profiles so we need to get more income to pay down this debt. The more immediate question is if Goodyear should launch its new line of Aquatred tires. The trend has been toward higher mileage tires and the Aquatred tire is not in line with this trend, being more of a higher end tire.... [tags: Business Management Consumerism Tires Essays]
2784 words (8 pages)
- Leaders in the school have hard decisions to help make on a daily basis. They need to evaluate their decisions to make sure they are ethical and effective. Administrators need to listen to all sides of a situation and evaluate all options before they make a decision. This process is difficult because administrators need to make sure that all parties involved are satisfied with the decision that was formed. The Requested Change case study In the case study with Principal Miller, he had to make a decision to change the instruction program or to keep it.... [tags: Decision Making Case Study]
1523 words (4.4 pages)
- After processing Goodyear’s options I feel it is best for Goodyear not to partner with Sears. When considering this partnership it is important to understand the tire industry, specifically the replacement tire market. 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 Original Equipment Market: OEM tires are sold by tire manufacturers directly to automobile manufacturers, and they... [tags: Business Analysis ]
913 words (2.6 pages)
- The case study that I will be looking at in this assignment is case study 2. This relates to Niamh and her partner who are pregnant with their second child. Their daughter from the previous pregnancy is now four years old, but the memories of the birth have caused anxiety to linger with them as they found it to be very traumatic. They are both very excited and happy to be pregnant again and are looking forward to the arrival of their second child. However, they both have very differing views on the delivery.... [tags: Psychology Case Study]
1457 words (4.2 pages)
- Course: International Business Management Activity: Case Study Company: PUMA |1924: |Rudolf and Adolf Dassler incorporate their first shoe company. | |1948: |Rudolf Dassler sets up his own company Puma Schuhfabrik Rudolf Dassler. | |1950: |Puma had established export ties to the United States, | |1959: |Rudolf Dassler's wife and two sons become part owners of the Puma Sportschuhfabriken Rudolf Dassler KG.... [tags: Business Case Study]
1746 words (5 pages)