Created by Sagar S T during an internship by Prof.Sameer Mathur, IIM-Lucknow

2. What do you
mean by
Good year?

3. • 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:

4. Background???

5. 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

6. 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

8. Market segmentation:

9. What is the
consumer behavior
in the Replacement
passenger tire
market?

10. Consumer behavior:
performance attributes
• Tread Life
• Wet Traction
• Handling
• Snow Traction
• Dry Traction

11. Consumer criteria:

12. Consumer segmentation:
Percentage of sales represented by
Percent of
Consumers
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

13. 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

14. Retail distribution channels:
Channel Share of
Retail 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%

16. Is Aquatred tires
are unique?

17. Aquatred Decision Situations:
• Will the consumers replace the
existing tires with the new
aquatred tires?
• Would customer prefer there
Safety and Reliability of
product ?

18. 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?

19. 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

20. 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.

22. recap:
Meaning of good year
Background of good year
Market segmentation
Consumer behavior
Consumer criteria
Consumer segmentation
Distribution channel
Aquatred launch
Market test
Recommendation

23. CREDITS:

25. Created by:
sagar s t
s.i.t, tumkur
during an
internship by
prof. Sameer mathur
iim, lucknow