Goodyear was one of the major tire manufacturers in the US in the 1970s. During that time, the tire industry experienced significant changes with the emergence of radial tires and increased foreign competition. This led to sluggish demand, declining prices, and excess capacity. Goodyear launched the Aquatred tire in the 1980s, which featured an unique aqua channel design for better wet traction. Based on positive test market results showing 38% market share, Goodyear decided to launch Aquatred nationally. The recommended strategy was to target value and quality focused consumers in heavy rainfall areas, position Aquatred as a safe and reliable brand, and promote aggressively during the winter Olympics.
3. It is one of 5 major Tire Industries in United
States during early 1970’s.
Goodyear is also known as “The Gorilla” for
it’s dominance on world tire Industries.
Goodyear has : 41 Plants in U.S
43 in other 25 countries
6 Rubber Plantations
4. Goodyear has : 4400 Independent Dealers
1300 Company owned outlets
600 Franchised Dealers
GOODYEAR is the only major U.S Tire
Manufacturer that had not been acquired during
1991.
6. Emergencies of radial tire to replace “bias” or
“bias-belted” Tire.
Increased foreign competition
Change in nature of demand from consumer &
Car makers.
7. What is the impact due to major
changes during 1970-1980?
10. 1970 - $1.5 Billion to convert factories to radial
1977 - Launched “TiempoTire”
1981 - Launched “EagleTire”
1980’s - Invested in pipelines
1987-1991 - 13% work force furloughed
1991 June - Stanley G Gault become Chairman of GOODYEAR
20. How Aquatred tires is
different from others?
Attractive
Unique Aqua channel design
Better traction under wet condition
60000 mile warranty
21. Aquatred Decision Situations.
GOODYEAR concern about
• Would dealers accept high prised Aquaterd tire with
60000 mile life compared to low prised tire with
80000 mile tires?
• Would customer prefer there Safety and Reliability of
product or low priced high mileage product?
22. Other Decision Issues:
What are we actually selling?
Should Aquatred launch?
When to launch (Timing)
Finding the target market
Brand positioning
Whether to expand distribution or not
What specific channels to be adopted
Pricing and promotion
Conflict between company outlets and independent dealers
23. Current test market:
GOODYEAR got 38% of tire Replacement
It has got 23% of value-oriented buyers and 61% of
Quality buyers
It has 91% of 4 tire buyers
It has 74% of Domestic buyers & 26% of Import
buyers.
54% of brand oriented buyers.
24. Recommended Decisions:
Since GOODYEAR has got good percentage of
buyers as per test market, it will be accepted by
dealers.
Since there are 23% of value oriented buyers
and 61 % of Quality buyers, Customer will
defiantly prefer Aquatred.
25. Other Recommended issue’s:
What are we actually selling?
Safety, Reliability and Trust.
Should Aquatred launch?
Yes, it should.
When to launch? (Timing)
Winter Olympic would be of advantage to launch and advertise
Aquatred.
Finding the target market.
Target heavy rain fall areas in U.S & target value oriented and
quality buyers.
26. Other Recommended issue’s:
Brand positioning
Capitalize high brand promotions & highlight safety, reliability &
trust within customers.
Whether to expand distribution or not?
Current distribution has met the demand of value oriented &
quality buyers. So, no expansion is necessary.
What specific channels to be adopted?
Use more independent chains & less owned outlets.
27. Other Recommended issue’s:
Pricing and promotion
Provide incentive schemes for dealers, Promote
aggressively during winter Olympics, Sponsor for
Olympics, promote sale and offers for customer buying
Conflict between company outlets and
independent dealers
Use uniform pricing strategy.
28. Recap:
Goodyear details
Important changes experienced by industries
Impact of the above changes
Market for passenger segmentation
Consumer behaviour in tire market
The wholesale & Retail distribution channels
The Launch of Aquatreds
Decision Situations & Analysis of test market
Recommended Decisions
30. Created by: Ishwarkumar Teggi,
Siddaganga Institute of
Technology, Tumakuru
During an Marketing Internship
by
Prof. Sameer Mathur,
IIM Lucknow.
(See:www.IIMInternship.com)