goodyear the aquatred launch
TRANSCRIPT
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