1. How would you characterize the competitive environment in the tire industry in 1991? The tire industry is divided into two end-use markets: First is the original equipment tire market (OEM) in which tires are sold directly to the automobile or truck manufacturers. This market represents 25 to 30 percent of the tire unit production volume each year. Goodyear is the market share leader in this segment and captures 38 percent (1991). Within this segment, price is highly inelastic due to the fact that car and truck manufacturers can easily switch to a competitor brand since the price competition in this segment is fierce in this market The second is the replacement tire market. This segment of the market accounts for 70 to 75 …show more content…
Their slogan also portrays a high quality message to consumers: The best tires in the world have Goodyear written all over them. Therefore, it is essential for them to maintain the availability of their high quality brands. 3. Does it make strategic sense for Goodyear to broaden its distribution beyond company-owned and franchised Goodyear tire retailers as a matter of channel policy? Why? It is important to consider that very few replacement buyers are knowledgeable about tires and many end up choosing a tire based on price while others follow the recommendation of their local dealer. Consumers are becoming more price conscious which is an important factor to consider when deciding if it is time to broaden distribution beyond company-owned and franchised Goodyear tire retailers as a matter of channel policy. Most replacement tire customers do not have a preference, which makes it easy for tire salespeople to switch customers to private label brands that deliver higher profit margins therefore, inability to penetrate that market segment would be a strategic error. 4. What are the strategic implications of broadened distribution of Goodyear-brand passenger tires through Sears Auto Centers? Broadening distribution through Sears Auto would be strategically advantageous because consumers
These channels enables exchanges and relationship building with customers by analyzing customer needs, innovative product design and feature to cater to customer needs, right price for the product and deciding channels for product distribution and sales programs to drive product sales. Hershey should do a paradigm shift in its brand- building programs to on-trend media vehicles such
Tire City, Inc. (TCI) is a rising distributor of automotive tires in northeastern United States. Their distribution centers arelocated throughout eastern Massachusetts. Their tires are sold as on-demand bases with chain of 10 shops located all throughout eastern Massachusetts with a central warehouse outside Massachusetts. Due to this proximity of warehouse, TCI stores enjoyed just-in-time delivery with only 24 hours of lag time.
The competitive advantage for Canadian Tire stems from the dependency on its dealers and how they interact with their local economy and community. As the dealers are at the front line in garnering profits and attracting and retaining customers, it is critical that they adjust the supplies and stocks accordingly to the needs of their community. The competitive advantage for the Canadian Tire brand relies on three key elements that the dealers possess in order to support a growing and profitable business. According to the Canadian Tire Annual Report (2010), the brand depends on the “business instincts, [the dealer’s] connection and commitment to their communities and their local market insights to ensure [they’re] offering relevant products at competitive prices” (p. 29).
4. In recent years, Vans has expanded in a number of directions. The company has (a) increased the number of sports it is affiliated with; (b) diversified its product portfolio; (c) expanded its distribution; and (d) broadened its promotional mix. Analyze each of these decisions in terms of their impact on Vans’ customer base, its brand image, and the overall alternative sports category.
This was the driving force behind the expansion of Dillard’s, but advertising can be credited with success of said expansion. With each acquisition of construction Mr. Dillard was careful to stress the importance of advertising and this paid dividends. However, with all of Dillard’s success it is easy to forget that there are other retailers in the industry just as big if not bigger than Dillard’s. How does Dillard’s compare to these companies in market share and
(Kern R. 2013) These distribution channels and their organizations will help the candy company better meet the needs of the niche candy market that they intend to target.
A good marketing strategy is very important for a company to promote and advertise their product. As for Goodyear Tires and Rubber Company, marketing could be one of the strength for the company. In United Stated, Goodyear is one of the leading national advertiser. They have maintained high-profit in auto racing to emphasize the high-performance capabilities of its tires and the company’s commitment to product innovation. Goodyear company is very well - known to have blimps that often to be seen at special event in United State and was the one of the most recognizable advertising icons in America till today. The company slogan “The best tires in the world have Goodyear written all over them” show that the company positioning as high-quality, worldwide tire manufacturer and marketer.
Sears began as a small retailer but as the years have gone by, they have become
AN ANALYSIS OF JC PENNY’S AND HOW IT RELATES TO COMPETITION WITHIN THE RETAILING INDUSTRY
2) Goodyear’s Tires brand image maybe hurt. Due to the fact that Sears sells mostly tires that are not premium quality, consumers may start to think Goodyear as a moderate brand and not as a high-quality product as it has been positioned. 3) Consumers of tires are becoming more price conscious and less brand loyal, thus they easily proceed into brand switching and erode the importance of securing replacement sales through original equipment sales to vehicle manufactures. 4) Dealer-sponsored private-label tires accounted for 15% to 20% of total replacement tire sales in the US in 1991.Many dealers are able to influence choices and push their private-label tires to obtain higher margins.
Canadian Tire was founded in 1922, providing Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal Categories. PartSource and Gas+ are key parts of the Canadian Tire network. The retail segment also includes Mark’s, a leading source for casual and industrial wear, and FGL Sports, which offers the best active wear brand. The 1,700 retail and gasoline outlets are supported and strengthened by Financial Services division and the tens of thousands of people employed across the Company. (p. 6) “Approximately, 68,000 individuals are employed across the Canadian enterprise and it remains one of Canada’s most recognized and trusted brands” (CNW, 2012, p.3).
The king of parts for an individual’s vehicle. Offering a much larger selection of parts.
Additionally, we considered developing a loyalty program to develop repeat customers and reward loyalty. We found that numerous auto shops have loyalty programs in order to retain their customers, however, they have a larger pool of competitors. Due to the nature of Stew’s Self Service Garage’s business, there are few competitors that operate within Stew’s Self Service
Estée Lauder’s distribution network consists of salons, specialty stores and high-end department stores. This is potentially limiting its reach to customers. A limited distribution strategy tends to increase dependency on specific channels which could be disastrous. For instance, Macy’s is Estée Lauder’s biggest client, accounting for nine percent of total sales and nearly forty percent of sales in the United States (Terlep, 2016). Macy’s is also aggressively closing stores.
In the end Goodyear tried to do too much and forgot their market and what made them so great in the first place. It is shown that in the ‘80s and early ‘90s Goodyear was in commanding lead of their competitors in the segment they were targeting. I believe that if they were going to launch the tire, then broadening their channels to a