Goodyear Tire Analysis Essay

1646 Words7 Pages
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…show more content…
However, consumers also indicated that price, service and trust, were the primary components in retailer selection. Exhibit 3 shows further segmentation by decision criteria. Brand is the primary choice for quality and value-oriented buyers who are willing to accept higher price points for quality. Competition Analysis. GY¡¯s main rival is Michelin, both owning 43% of the major brand market. However, Michelin has greater brand equity in the quality and value segments which are likely to be key to the success of AT and GY¡¯s brand. However, the greatest threat to all brands is the emerging popularity of Private Label (PL). Exhibit 4 shows the switching amongst brands showing PL as the dominant segment consumers are switching into. Private labels sold at an 18% discount to comparable brands with no appreciable difference in tire life. Both Michelin and Bridgestone are planning to launch new major brand tires with 80,000 mile warranties. This compares to a 60,000 mile warranty for AT. In addition, Continental Tire will launch (within 18 months) Aqua Contact, a direct rival to AT. Michelin distributes its tires through a far more intensive network than GY. However, these outlets are multibrand outlets, warehouse clubs and mass merchandisers giving Michelin less influence and product information with their retailers than GY. Company and AT Analysis. In the past, GY has had a reputation for developing innovative products. Recent
Open Document