AquaTred Goodyear Tyres: A Competitive Market Analysis

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A competitive market analysis: AquaTred Goodyear Tires The problem AquaTred Goodyear tires were replacement tires designed in 1992 to provide enhanced traction during poor weather conditions. Trends in the tire industry during the 1970s had resulted in consumers driving less often, replacing tires less, and using more durable and long-lasting radial tires on smaller vehicles. Also, increased foreign competition was now a factor in the tire industry. The industry never quite recovered the level of robustness that had existed previously. AquaTreds were an attempt by Goodyear to offer added incentive to choose its product in the volatile tire market. Because tire purchases have little glamour attached to them, and practicality and price are a premium, Goodyear wanted to offer an added functional advantage to choose its product, as well as added social cache by selecting a premium tire. The AquaTred was positioned to be marketed to higher-end customers that cared about quality as well as price. Preliminary research indicated that the target consumer for the AquaTreds was also more likely to research a product before purchase (Isaacson 1994: 13). But Goodyear dealers were lukewarm about the product, citing the fact that price and the ability to last for longer distances was more of a factor in consumer decision-making. It was a 'boutique' tire, when middle-range products moved the quickest off the shelves (Isaacson 1994: 14). Expanding distribution channels to reach a wider

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