Goodyear Aquatred Case Study
GOODYEAR Aquatred Case Study
How do consumers purchase tires? Tire consumers (at replacement market) will buy tire at two different occasions: when they need new tire immediately (emergency occasion), and as a spare change in case of emergency (preventative occasion). It is dubbed a “grudge purchase” where consumers won’t have any choice but to buy tires in order to make sure that their car is able to run. The average time between purchases is 2.5 years but more than 50% of all consumers buy the tire at the same time they became aware of their need of the tire which means that they (most consumer) have immediate action and limited time to consider purchase. Consumers of Goodyear purchase tires according to the classification of the consumer, in the sense that consumers in each classification will perceive Goodyear tires differently, therefore will purchase the tires in a different manner/process. Tire consumers are generally consisted of: 1. Quality Conscious buyers accounted for 18%. These consumers put emphasis on the quality of the tire. Their buying decision will be determined by the quality-driven property of the tire including the long-life of the tire, the quality of the rubber, the traction it provides, the tread of the tires, as well as high quality sales and after service. These consumers perceive tire as an important investment for their car (which most likely to be expensive and/or luxurious) and will not hold back their money to purchase high quality tires. They are considerably less sensitive to the pricing, and more on the product. Exhibit 4 also shows a relatively high awareness/intent to buy at 15% for Goodyear but still lower than Michelin which consumers of this classification mostly prefer. Consumers in this classification would buy their tires mostly from their respective manufacturer dealers (car manufacturers), tire manufacturer outlets (Price Index 107%), as well as independent dealers for the specific brand. They would generally gather
How do consumers purchase tires? Tire consumers (at replacement market) will buy tire at two different occasions: when they need new tire immediately (emergency occasion), and as a spare change in case of emergency (preventative occasion). It is dubbed a “grudge purchase” where consumers won’t have any choice but to buy tires in order to make sure that their car is able to run. The average time between purchases is 2.5 years but more than 50% of all consumers buy the tire at the same time they became aware of their need of the tire which means that they (most consumer) have immediate action and limited time to consider purchase. Consumers of Goodyear purchase tires according to the classification of the consumer, in the sense that consumers in each classification will perceive Goodyear tires differently, therefore will purchase the tires in a different manner/process. Tire consumers are generally consisted of: 1. Quality Conscious buyers accounted for 18%. These consumers put emphasis on the quality of the tire. Their buying decision will be determined by the quality-driven property of the tire including the long-life of the tire, the quality of the rubber, the traction it provides, the tread of the tires, as well as high quality sales and after service. These consumers perceive tire as an important investment for their car (which most likely to be expensive and/or luxurious) and will not hold back their money to purchase high quality tires. They are considerably less sensitive to the pricing, and more on the product. Exhibit 4 also shows a relatively high awareness/intent to buy at 15% for Goodyear but still lower than Michelin which consumers of this classification mostly prefer. Consumers in this classification would buy their tires mostly from their respective manufacturer dealers (car manufacturers), tire manufacturer outlets (Price Index 107%), as well as independent dealers for the specific brand. They would generally gather