Goodyear’s Aquatred Case Goodyear, around the late 1980s was developing a tire that would set them apart from the competition. Unfortunately they were stuck in a time when replacing tires was not high on peoples list of pleasantries, which will be explained in greater detail. Goodyear developed what they called the Aquatred tire which was supposed to give greater traction during wet weather and a superior quality that would have the same traction after much use as some tires did when they were
GOODYEAR Aquatred Case Study How do consumers purchase tires? Tire consumers (at replacement market) will buy tire at two different occasions: when they need new tire immediately (emergency occasion), and as a spare change in case of emergency (preventative occasion). It is dubbed a “grudge purchase” where consumers won’t have any choice but to buy tires in order to make sure that their car is able to run. The average time between purchases is 2.5 years but more than 50% of all consumers buy the
Executive Summary Contemplating the launch for the Aquatred, an innovative tire providing improved driving traction under wet driving conditions, Goodyear needs to finalize the specifics regarding their marketing plan and distribution structure. In a time when tire purchases are becoming more price sensitive and moving towards a market demanding low cost private labels, Goodyear needs to determine an efficient strategy that markets a premium priced tire to this price dependent consumer base.
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
Case Study: Goodyear: The Aquatred Launch 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
Sherief Rasheed PGP/12/234 Zubin Kabeer T. PGP/12/246 Neerja Chowdary PGP/12/259 Key Issues: How can Goodyear be more competitive and maintain its leader position? How to launch Aquatred effectively? Factors to be taken into consideration: Intense competition • many players in the industry, both branded and private label • Michelin, was growing very fast in both replacement and
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
means to renew interest and liking for the brand. Permit Subsequent Extensions One benefit of a successful extension is that it may serve as the basis for subsequent extensions. For example, Goodyear 's successful introduction of its Aquatred tires sub-brand led to the introduction of Eagle Aquatred for performance vehicles with either wider wheels (e.g., the Ford Mustang) or a luxury image (e.g., the Cadiltdi Seville). Disadvantages Of Extensions Despite these potential advantages, extensions