goodyear : the aquatred launch

Download Goodyear : The aquatred launch

Post on 12-Aug-2015

46 views

Category:

Marketing

7 download

Embed Size (px)

TRANSCRIPT

  1. 1. Goodyear : The Aquatred Launch
  2. 2. HISTORY TRADITIONALLY HUGE MARKET SHARE 41 PLANTS IN U.S AND 43 PLANTS OVERSEAS 2000 DISTRIBUTION WORLDWIDE AROUND 1,05,000 EMPLOYEES FOREIGN MARKET SHARE ROSE FROM 8 % IN 1972 TO 22% IN 1990
  3. 3. The market for Passenger Tires PERFORMANCE BROADLINE TIRES Better traction Poor handling 30% of dollar sales 25% of Gooodyears unit sales Higher percentage of profits Less percentage of profits More expensive Less expensive
  4. 4. The Market for Passenger Tires 65 % REVENUE 35% REVENUE Replacement Vs OEM SOLD TO INDIVIDUAL CUSTOMERS SOLD TO CAR MANUFACTURERS
  5. 5. The Market for passenger tires BRAND CLASSIFICATION Major Brands Minor brands Private label 36 % of unit sales 24 % of unit sales 40 % of unit sales Highest recognition among consumers Minor but well recognized among consumers Large manufactures use excess capacity to service private labels Goodyear , Firestone , Michelin , Bridgestone , Pirelli and goodrich Dunlop , General , kelly , uniroyal , cooper They carried names to particular retailers
  6. 6. Goodyears Distribution Structure 4 CHANNELS OF DISTRIBUTION INDEPENDENT DEALERS : ACCOUNTED FOR 50 % OF SALES REVENUES THROUGH 4400 OUTLETS ( 2500 ACTIVE MANUFACTURER-OWNED OUTLETS : GENERATES 27 % OF SALES THROUGH 1047 OUTLETS FRANCHISED DEALERS : 600 IN TOTAL ACCOUNTED FOR ANOTHER 8 % OF SALES GOVERNEMENT AGENCIES : 15 % OF SALES
  7. 7. SALES OPERATION COMPANY OWNED OUTLET INDEPENDENT DEALERS 42 DISTRICTS ( 1 DM ) 28 DISTRICTS ( 1 DM ) 20 TO 23 STORES EACH (1 SM ) AVG. 3 SM SERVICES 1. Expertise & Training 2. GY business mgt. System 3. National & regional advantage 4. Research on market trend 5. Certified Auto service
  8. 8. INDEPENDENT DEALERS AUTO SERVICES SERVICES SALES $38,100 PER MONTH PER OUTLET 1. 26 % ( 1980 ) to 48 % ( 1991 ) 2. 20 % tries related work MARGINS 1. 50 % service labor 2. 20 % to 25 % parts installed REVENUES 1. 70 % service labor 2. 30 % parts
  9. 9. Goodyear & independent Dealers 1989 70 % only GY & 30 % other brand also 1991 50 % - 50 % Aggresively merchandised other brands but GY generates 90 % of the revenues INDEPENDENT DEALERS NETWORK BETTER OPTION Grow sales , expand brand availability & increase market share
  10. 10. CONSUMER SEGMENTS TYPES OF BUYERS LOYALTY OF OUTLET LOYALTY TO BRAND SHOP AROUND OTHER PRICE CONSTRAINED LESS LESS MORE BEST IN THEIR BUDGET VALUE ORIENTED LESS MAJOR BRANDS EXTENSIVELY SEARCH FOR BEST PRICES QUALITY - PRESTIGE MORE MORE LESS BEST TIRES 65 % MAJOR BRANDS QUALITY - CC MORE LESS LESS 38 % MAJOR BRANDS COMMODITY BARGAIN HUNTER LESS LESS EXTENSIVELY YOUNG, PRICE COMMODITY TRUSTING PATRONS MORE LESS LESS LOWER PRICE
  11. 11. SWITCHING AMONG BRANDS 9%-11% OF SALES ON ADV. & PROMOTION 60 % SHARE OF VOICE IN TV & MAGAZINES BRAND REPLACED BRIDGESTON E FIRESTONE GOODYEAR MICHELIN MINOR BRANDS PRIVATE LABEL BRIDGESTON E 29 4 8 8 7 43 FIRESTONE 2 27 11 6 7 45 GOODYEAR 2 5 39 5 9 38 MICHELIN 3 3 7 44 6 36 MINOR BRANDS 2 4 10 7 32 42 PRIVATE LABEL 2 5 8 5 7 70
  12. 12. PROMOTIONS 1. ESTIMATED 75 % OF ALL GOODYEAR TIRES SOLD IN INDEPENDENT OR COMPANY OWNER OUTLETS WERE SOLD ON PROMOTION AT AN AVERAGE DISCOUNT OF 25 % . 2. PROMOTIONS ORGANIZED AROUND CORE ELEMENTS SIX 3 WEEK PERIODS SPREAD THROUGHOUT THE YEAR TO BUY MERCHANDISE AT A DISCOUNT . THIS WASSUPPORTED BY RADIO, TELEVISION , AND PRINT ADVERTISING ANNOUNCING SPECIAL PRICES ON SPECIFIC TIRE LINES. 3. SPRING DATING , ORGANIZED EVERY SPRING , PROVIDED EXTENDED FINANCING ON TIRE ORDERS TO GOOD YEAR DEALERS.
  13. 13. SHOULD WE LAUNCH AQUATRED ?
  14. 14. RESULTS OBSERVED AQUATRED BUYERS WERE LIKELY TO REPLACE COMPETITOR TIRES LESS CANNIBALIZING ( GOODYEAR 38-51 & MICHELIN 17-15) BREAKING THE ORIENTATION ( BRAND 56-47 ) 1. Uplifting brand equity TARGET SEGMENTS 1. Value oriented& quality buyer
  15. 15. RESULTS OBSERVED FEATURES TOLD BY THE SALESPERSON Details Aquarted Invicta GS 60 k mile warranty 41% 10% Great wet traction 33 38 Didnt mention them 13 42 Wont hydroplane 16 9 Other 29 18
  16. 16. The launch of Aquatred A HIGH PROFILE LAUNCH OF AQUARTED WAS PLANNED AS IT WAS ESSENTIAL FOR REVITALIZING THE NAME OF GOODYEAR TYRES IN THE MARKET FULL SCALE BUDGET FOR LAUNCH : $21 MILLION GOOD YEAR MADE COMMITMENTS FOR COMMERCIAL TIME DURING THE WINTER OLYMPICS IN JANUARY 1992 TO GET AN ADVANTAGE OF MASS PROMOTION
  17. 17. Issues faced on launching TIMING OF LAUNCH RIGHT PRODUCT OR NOT DISTRIBUTION CHANNEL PRICING AND PROMOTION INITIAL INVENTORY
  18. 18. Recommendations GO- TO MARKET STRATEGY CUSTOMERS : VALUE ORIENTED AND QUALITY BUYER SEGMENT COMMUNICATION PLANS a. Message : Highlight core values of safety , trust and reliability on all season b. Place : Upcoming Olympics events on jan 1992 through a video ad with above message In addition other strategies are required 1. Radio ads 2. Teaser ads 3. Billboards 4. Press releases 5. On snow Demo
  19. 19. Recommendations INITIAL INVENTORY - TEST MARKET RESULTS SHOW - 74 % BUYERS OF DOMESTIC - 26 % BUYERS OF IMPORTED
  20. 20. Recommendations CHANNEL STRATEGY USE EXISITING INDEPENDENT CHAIN & MANUFACTURING OUTLETS GEOGRAPHIC SPREAD OF ALL CONTACT POINTS FOR MAXIMM REACH DESIGN PROMOTIONAL INCENTIVE SCHEMES FOR DEALERS MOTIVATE OR TRAIN OTHER INDEPENDENT DEALERS TO PROMOTE GOODYEAR PRODUCTS ( TOTAL 1900 DEALERS ) CONTACT POINT INTEGRATION TO HAVE SAME MESSAGE AT ALL TOUCH- POINTS
  21. 21. CREATED BY ELDHOSE ALIAS , MEC ERNAKULAM ,DURING AN INTERNSHIP BY PROF . SAMEER MATHUR , IIM LUCKNOW www.IIMInternship.com