Beruflich Dokumente
Kultur Dokumente
Gaurav Sharma Pauline Busnel Naima Kassanaly Gaspard Padet Hardeep Pathak Gaurav Arora Paritosh Singh Ashish Varkey
Company Background
The Goodyear Rubber & Tire company had been known as The Gorilla for its dominance In 1991, Goodyear operated 41 plants in U.S., 43 in 25 other countries and more than 2,000 distribution outlets worldwide In 1991, Goodyear had approximately 1.05 lac employees and a revenue of $10.91 billion Goodyear ranked third in worldwide sales of new tires after Michelin & Bridgestone In 1977, Goodyear introduced Tiempo , the first all-season radial In 1981, Goodyear launched the Eagle, the first radial tire offering high speed traction for sports cars. In 1991, Stanley G. Gault became the chairman of Goodyear and laid more emphasis on new product development
Brand Shares
18 16 14 12 10 8 6 4 2 0 1975 1980 1985 1991 Goodyear Michelin Firestone Goodrich Bridgestone
Market Segmentation
Performance & Broad-line : Performance tires were wider , expensive (approx. 3 times) & provided better traction compared to broad-line tires Replacement & OEM : Replacement tires were sold to individual customers while OEM were sold to car manufacturers
Replacement (in mn. dollars) Industry $8,600 Goodyear $1,290 OEM N/A $695 Replacement (in mn. units) 152.0 22.8 OEM 43 16.3
Market Segmentation
Major, Minor & Private Labels : Major brands had the highest recognition among customers. Minor brands included tires made by small manufacturers as well as major manufacturers but sold under different name. Private labels had flexibility in pricing.
Major brands Minor brands Private labels
40%
36%
24%
Consumer Behavior
Price Offers fast service Can trust personnel Store is attractive Offers mileage warranty Brand selection Maintains convenient hours
Consumer Segmentation
Price-constrained buyers Quality buyers Value-oriented buyers Commodity buyers
22% 37%
18%
23%
1-level
Manufacturer
2-level
Manufacturer
Wholesaler
Retailer
Retailer
Consumer
Consumer
Consumer
Garages / Service stations Warehouse clubs Mass Merchandisers Manufacturer-owned outlets Small Independent tire dealers Large Independent tire chains Other
Retail
Garage/ Service Stations Small Independent Dealers Manufacturer Outlet Warehouse
OBS
Small outlets Gasoline Auto Services Small outlets auto services One brand auto services Large stores Limited offer according to deals Minimum Service LOW PRICE Retail Chain Large Brand Selection Auto Services Multi brand discounters LOW PRICED, HIGH VOLUME
Share
6%
% Private Label
57%
Price
110%
40%
36%
100%
9% 6%
16% 8%
107% 80%
12%
34%
97%
23%
54%
90%
Conflict
Conflict between various channels due to differences in the independent goal of each channel Goal: ->Small independent dealers : Obtain higher margin & attract loyal customers ->Manufacturer owned : To make public aware & educate about Goodyears product line ->Large chains : To push the largest volume of product at smaller margins
Aquatred Tire
Goodyear started the NEWEX project to develop a new & exciting product. The Aquatred was developed after comparing 10 different designs on performance and consumer preference The deep groove down the center of the tire was called the aquachannel It channeled water out from under the tire reducing hydroplaning & improving traction in wet conditions
(contd)
In wet conditions , cars travelling at 55mph stopped in as much as 2 car lengths less distance than similar cars equipped with conventional tires. When 50% worn it maintained the same traction as a new all season tire Positioned at the top of the broad line segment with a 60,000 mile warranty
Recommendations
Loyalty Programs Compromise with independent dealers about competition in the areas Expand more distribution channels and find new retail formats like Just Tires Integrated marketing communication to create awareness Researches to observe trends and changes in consumer preferences Emphasize on strong brand image and outstanding customer services
Recommendations
Conflict : Specialized sales force that conducts planning sessions with goal setting and communicate incentive programs Planning for each product in the PLC which type of distribution system to select from extensive to intensive Design internal structure with specialized programs
Thank You