goodyear the aquatred launch

What do you mean byGood year?

• 1 of the 5 to dominate the industry in 1970’s

• GOODYEAR is the only major U.S Tire Manufacturer

that had not been acquired during 1991.

• Goodyear has :

4400 Independent Dealers

1300 Company owned outlets

600 Franchised Dealers

• Goodyear has :

41 Plants in U.S

43 in other 25 countries

6 Rubber Plantations

Good year:

Background???

Background of good year:

• Dominated the market from 1900s to

1970s

• Bias & Bias-belted tires were phased

out by radial

• Strong track record of innovation

• Diversified in 1980’s

• 1991 Stanley G Gault

• Sold indirect investments

• Priority on new development

Background of Good year:

1970 -$1.5 Billion to convert factories

to radial

1977 -Launched “Tempo Tire”

1981 -Launched “Eagle Tire”

1980’s -Invested in pipelines

1987-1991 -13% work force furloughed

1991 June -Stanley G Gault become

Chairman of GOODYEAR

Market segmentation:

What is the

consumer behavior

in the Replacement

passenger tire

market?

Consumer behavior:

performance attributes

• Tread Life

• Wet Traction

• Handling

• Snow Traction

• Dry Traction

Consumer criteria:

Consumer segmentation:

Percentage of sales represented by

Percent ofConsumers

Major Brands Minor Brands Private Brands

Price-constrained buyers 22% 30% 35% 35%

Value-oriented buyers 18 54 29 17

Quality buyers 23 51 28 21

Commodity buyers 37 18 37 45

All tire buyers 100 33 33 34

Distribution channel:

Type of Outlet 1976 1981 1986 1991

Oil companies 9% 5% 3% 2%

Large retailers 24 20 16 19

Manufacturer-owned outlets

11 10 13 12

Independent dealers

56 65 68 67

Retail distribution channels:

Channel Share ofRetail Sales

1976 1981 1986 1991

Garages/service stations 18% 11% 8% 6%

Warehouse clubs 0 0 2 6

Mass merchandisers 28 24 16 12

Manufacturer-owned outlets 11 10 11 9

Small independent tire dealers 36 47 46 40

Large independent tire chains 4 2 12 23

Other 3 6 5 4

Total 100% 100% 100% 100%

Is Aquatred tires

are unique?

Aquatred Decision Situations:

• Will the consumers replace the

existing tires with the new

aquatred tires?

• Would customer prefer there

Safety and Reliability of

product ?

Decision Issues:

Whether to launch Aquatred to

the market or not?

When to launch the product?

What is the target market?

Whether to expand distribution

channels or not?

What specific channels to be

adopted?

Pricing and promotion?

Test market:

38% of tire Replacement from the good

year

61% of Quality buyers for good year

It has 91% of 4 tire buyers

It has 74% of Domestic buyers & 26% of

Import buyers.

54% of brand oriented buyers

Recommendation:

launch aquatred existing channels

focus on independent dealer

expansion

Since GOODYEAR has got good

percentage of buyers as per test

market, it will be accepted by

dealers.

recap:

Meaning of good year

Background of good year

Market segmentation

Consumer behavior

Consumer criteria

Consumer segmentation

Distribution channel

Aquatred launch

Market test

Recommendation

CREDITS:

Created by:sagar s ts.i.t, tumkur

during an internship by

prof. Sameer mathuriim, lucknow