Case Study Goodyear

Topics: Michelin, Marketing, Tire Pages: 4 (1023 words) Published: July 8, 2009

Group 2
Nikhil JainPGP/12/184

Midhun SPGP/12/222

Shamin SPGP/12/232

Sherief RasheedPGP/12/234

Zubin Kabeer T. PGP/12/246

Neerja ChowdaryPGP/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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