Goodyear is the third largest tire manufacturing company in the world. It has 15% market share in the US but the second in rank Michelin is also slowly gaining in on the market share.
Another threat to Goodyear’s market share was the slowly increasing share of private labels.
In order to avoid losing their market share they needed to transform themselves from a manufacturing based company to a company to a customer value based company.
Consumers of replacement tires: Consumers are people who own cars, it is part of the vehicle maintenance to replace tires, and to most consumers it is considered as a “grudge purchase”.
The day they know that they need to change tires is the day that they are going it to buy it.
Usually consumers buy tires in pairs, 42% of them purchases involved 2 tires and 40% involved
There are 3 types of consumers, quality-conscious buyers (18%), value-conscious buyers
(23%) and price-focused buyers (59%). Despite their different views on the product, all of them accord a great importance on prices, it is a price driven market, and customers are getting used to buy their tires on promotion.
Retail channels and distribution network of Goodyear tires: These include, large chains that do not do further retail operations, large chains that go on to re-sell to retailers and finally small independent dealers.
Competitors: Major competitors to Goodyear are Bridgestone, Firestone, Michelin and private labels, but the main competitor is Michelin. Even though, they don’t have the same image among customers: Goodyear attracts more price-focused customers, while Michelin has a stronger image among quality and value conscious customers. Besides, this latter has a more intensive distribution and coverage, indeed, unlike Goodyear’s products; we can find
Michelin’s tires in warehouse clubs’ and mass merchandisers.
The Aquatred Tire: “The Aquatred” is the new innovative tire developed by Goodyear for passenger cars,