Goodyear was damaging its reputation because of lack of caring to distribution channel. Let analyise this case study.

1. GOODYEAR & PARTNERING LESSON

2. What’s up???
GY was damaging its reputation because of lack
of caring to distribution channel

3. CHANNEL DESIGN
Direct • Company to end-users.
channels • Phone, mail, in-person
visit, …
Indirect • 3rd party intermediaries
channels

4. INDIRECT CHANNEL
Middlemen, they are…
• Agents – Broker representatives
1
• Wholesalers - Distributors
2
• Retailers - Dealers
3

5. What Keller said about middlemen?
• Customer insight:
“This store only sells good-quality, high-value mechandise, so this particular
product must also be good quality and high value”
So…
Retailers have the greatest opportunity to affect brand equity

6. What else he said?
Distribution channel support Marketing to end-customer

7. What GY has done?

8. GY era in 1970s-1980s
started to earn dealers loyalty
 competitive price
 On time delivery
 Visible marketing
through Goodyear blimp

9. GY misstep in 1990s
 The price varied from month to month
 When distributors order tires, only 50% is available
 1992, started to co-op with big retailers: Sears, Wal-Mart,
Sam’s Club.
To increase sales, GY offer the big discounts that is
different among dealers

10. What happened then: Dealers…?
* Have to pay = customer could pay at other retailers
* Have to buy more tires than they needed (bc of discount)
* Unfair pricing
* Poor quality
They annoyed!!!!!
1. They found difficult to continue to
deal with GY
2. Some changed to other brands

11. What happened then: Goodyear…?
Loss $550 million in sales
Sales slumped 14%

12. 1. Resellers spend much $ to maintain their facilities & sales staff
To compensate them, manufacturers can offer dealers exclusive
access to new product
2. Fixed prices to end-consumers
big discount: should offer them at outlet malls for not confuse
customers
3. Should educate retailers about
product so the retailers can shape an
effective sales force
Dealers feel happy and profitable  smooth supply chain
 benefit manufacturers

13. Thanks
Introduced by C-team:
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