Goodyear Aquatred Case Analysis

Topics: Marketing, Price, Pricing / Pages: 11 (2553 words) / Published: Dec 20th, 2010
Executive Summary

Contemplating the launch for the Aquatred, an innovative tire providing improved driving traction under wet driving conditions, Goodyear needs to finalize the specifics regarding their marketing plan and distribution structure. In a time when tire purchases are becoming more price sensitive and moving towards a market demanding low cost private labels, Goodyear needs to determine an efficient strategy that markets a premium priced tire to this price dependent consumer base. Below is a summary of the proposed marketing plan:

Year 1 Expected Sales: $76,594,350 (about 850,000 units)

In addition, Goodyear is considering expanding their entire distribution structure to occupy emerging channels in the market. By utilizing these growing channels, Goodyear will be able to establish a solid foundation as the tire distribution evolves to accommodate lower priced tires. Based on current market trends, the only growing channel that Goodyear has yet to utilize would be that of Warehouse Clubs. Even though Warehouse Clubs are a relatively new retail format, they are quickly growing thanks to their variety of product offerings and low prices. Even though the Aquatred marketing plan would not appeal to this particular channel, Goodyear should expand distribution and market a low priced tire to be sold thorough this emerging channel.
Define the Issue
In order to revitalize the company, Goodyear needs to construct and implement an appropriate marketing strategy and distribution channel for the launch of their new innovative line of tires, the Aquatred. With the industry turning toward long-life warranties and low cost private labels, Good year needs to select a specific consumer and channel in order to maximize sales and build brand equity, while increasing dealer receptiveness and reducing channel conflict. In addition, Goodyear is debating whether to expand their overall distribution structure with the intention of boosting sales and reducing

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