Goodyear-The Aquatred Launch Case Analysis_Group 10

Case Analysis: Goodyear-The Aquatred Launch Group 10 Ataul Karim (P1600!" #ustin $er nande% (P1601&!" 'ahil #ain (P160!" )ishi Khar*anda (P160&!" +aina, Pradhan (P160!

.ac,/round Consume Consumer: r: Goodyear segmented tire buyers into four categories – price-constrained buyers, value-oriented buyers, quality buyers, commodity buyers. In 1992, 4! of tire buyers "ere price oriented, 22! "ere brand oriented and ##! believed t$e outlet "as not important. Company:  Goodyear operated 41 plants in t$e %&, 4# plants in 2 ot$er countries, ' rubber   plantations and more t$an 2((( distribution outlets "orld"ide. It ran)ed #rd in "orld"ide sales of ne" tires. It also $ad a strong trac) record in launc$ing innovative products. Competitors: *ic$elin, +irestone, %niroyal, + Goodric$, ridgestone, %niroyal and General ire. *ic$elin is t$e maor competitor for Goodyear among value-oriented and quality buyers. Contet:  In t$e 19/(s and 190(s, t$e %& tire industry eperienced t$ree important c$anges- t$e emergence of t$e radial tire to replace t$e older bias3 and bias-belted3 tire constructions, increase foreign competition and c$ange in t$e nature of demand from consumers and car ma)ers "ere observed. In 1909, Goodyear started t$e 5657 proect, to develop a ne" and eciting replacement mar)et tire. $e 8quatred "as developed after comparing 1( different designs on  performance and consumer preference. ecision Pro*lem 'tatement

Is 8quatred t$e rig$t product for t$e dealers and for t$e consumers If yes, "$et$er distribution s$ould be epanded and if so, "$at specific c$annels or retailers s$ould be added Is it t$e rig$t time to launc$ t$e 8quatred Alternati2es and their 32aluations 14 Goodyear Goodyear to *roaden *roaden its its distri*ution distri*ution to mass mass merchandise merchandiserr and o55er o55er Aquatred Aquatred *ass merc$andiser focuses more Intensive distribution "$ic$ comes "it$ its o"n advantages and disadvantages Ad2anta/es: • Intensive Intensive distribution distribution t$roug$ mass merc$andise merc$andiserr can be done t$roug$ small and large independent tire c$ains "$ic$ "ould provide increased coverage and increased sales. isad2anta/es: a: $is strateg strategy y "ould $elp $elp in t$e s$ort s$ort run but but it can $urt $urt long term term performance performance  by eroding brand equity.  b: *ass merc$andiser focuses on volume "$ic$ encouraging price "ars "$ic$ furt$er erodes profitability c: *ass merc$andi merc$andiser ser sales sales are driven driven by promotional promotional discount discountss "$ile 8quart 8quarted ed  product is priced at 1(! premium over t$e standard product.

4 Goodyear to *roaden its istri*ution Channels 5ocusin/ on 3clusi2e ealership ith the Aquatred o focus more on &elective distribution and reducing on t$e Intensive distribution Ad2anta/es • a: &elective distribution "ill $elp in gaining adequate mar)et coverage "it$ more control and less cost t$an intensive distribution.  b: 8quarted pricing and selective distribution "ill ensure t$at t$e product is of  $ig$ quality and "ill attract t$e quality customers also. c: It "ill also ensure t$at t$e territory conflict is minimum among t$e distributors. isad2anta/es • a: *ost customers of Goodyear are price-sensitive and $ence mar)et s$are in t$at segment may come do"n.

)ecommendation and 7utcomes

8quarted product is a patented tec$nology and its launc$ "ill ensure t$at Goodyear is innovation driven company. o move from t$e promotional discounts, company s$ould focus on t$e advertisement and try to attract t$e customers t$roug$ t$e quality features of t$e product. $e launc$ of 8quarted during "inter ;lympics is a rig$t decision as t$e product is in initial p$ase and $ence etensive mar)eting is needed. • • • •