Case Study Goodyear

Topics: Marketing, Tire, Customer relationship management, Customer service / Pages: 5 (1023 words) / Published: Jul 8th, 2009
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Group 2 Nikhil Jain PGP/12/184

Midhun S PGP/12/222

Shamin S PGP/12/232

Sherief Rasheed PGP/12/234

Zubin Kabeer T. PGP/12/246

Neerja Chowdary PGP/12/259

Key Issues:
How can Goodyear be more competitive and maintain its leader position?
How to launch Aquatred effectively?

Factors to be taken into consideration: Intense competition • many players in the industry, both branded and private label • Michelin, was growing very fast in both replacement and OEM market • private label had become the biggest threat for all branded tires since many branded tire owners intended to replace their tires with private label.
Changes in consumer preferences • 45% of tire buyers thought that price was the most important factor • 33% for the outlets and 22% for the brand Segmentation of consumers: ✓ price-constrained buyers (22%), ✓ commodity buyers (37%), ✓ value-oriented buyers (18%), ✓ quality buyers (23%). • Buyers turning into commodity buyers • Goodyear had the highest percentage among price-constrained buyers (16%) and commodity buyers (10%), • 24% of value-oriented buyers and 22% of quality buyers intended to buy Michelin tires.
Michelin’s consumers had high loyalty to the brand more than Goodyear’s.

Goodyear distribution channels • Three main distribution channels of Goodyear: ✓ 4,400 independent dealers accounting for 50% of sales revenues ✓ 1,047 manufacturer-owned outlets generating 27% of sales ✓ 600 franchised dealers accounting for another 8% of sales • Industry Statistics (retail channels) ✓ garages/service stations (6%)

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