Goodyear Tire and Rubber Company wanted to launch a new tire called the Aquatred. They analyzed whether the tire had competitive advantages, what the optimal distribution channels and promotion strategy were, and when to launch. Goodyear has been in business since 1898 and is one of the top six tire companies. Their main competitors are Michelin and other major US tire brands. Consumer preferences for tire attributes like tread life, traction, and price influence their purchasing decisions. Goodyear segmented consumers into four groups based on shopping behaviors. The document discusses analyzing the market, competition, consumers, and Goodyear's distribution channels to inform the launch strategy for the new Aquatred tire.

1. Goodyear Tire and
Rubber Company
The Aquatred Launch
M a r k e t i n g S t r a t e g y
N i l e n d r a S i n g h
P R N : 1 7 0 2 0 3 4 8 0 1 2
S C M H R D : E x - M B A 2 0 1 7 - 2 0

2. Objective
 Do Goodyear have the right product?
 Should distribution channel be expanded?
 What should be the promotion strategy?
 Will Aquatred have the competitive edge?
 What should be the Launch time?

4. Company Background
• Founded in 1898
• Among top 6; Monopolistic competition
• Called “The Gorilla” 41 plants in US, 43 plants overseas, 6 rubber
plantation
• 2000 distribution outlets and 105,000+ employees
• 3rd rank in worldwide sales of new tires
• Launch innovative products
• Tiempo (1977): All season radial tire
• Eagle (1981): High speed traction
4

5. Logo here
Status of Tire Industry

6. Competition Analysis
 Between 1900 to 1970’s there was five companies dominating the US
market which were mainly Goodyear, Firestone, Uniroyal, BF
Goodrich Tires, and General Tires
 The major foreign competitor is Michelin of France
 Michelin’s image was stronger among value oriented and quality
buyers, while Goodyear had a stronger image among price
constrained buyers and commodity buyers

7. Market of Passenger Tires
7
Brand
Classification
Replacement
and OEM
Tires
Performance
and Broad
Line Tires

8. “
The average time between purchase of
tires was usually 2.5 years
Consumer Analysis
From consumer’s perspective tires
were viewed as an expensive
necessity to keep a vehicle in
driving condition
Goodyear always believed in strong customer base and regularly
surveyed car owners for tire attributes, tire selection criteria and their
shopping behaviour to identify potential customer and demand for
innovation

9. Logo here
Consumer Analysis: Tire Attributes
9
The five important features in order of customer
preference were:
TREAD LIFE
WET TRACTION
HANDLING
SNOW TRACTION
DRY TRACTION

10. Consumer Analysis: Tire Selection
10
Customer base purchase decision on
various features like:
 Quick service
 Product pricing
 Effectiveness of current channels
 Store Ambience
 Mileage warranty
 Brand preference and
 Convenient shopping hours
Consumer Analysis: Shopping Behavior
Based on shopping behaviour
Goodyear segmented customers in
four major categories:
 Price constrained
 Value oriented
 Quality
 Reasonable price at preferred outlet

11. • Reasonable
price at
preferred outlet
• Loyal to outlet
and brand
• Choose the major
brands at best
price
• Buy the best but
within their
budget
Price
Constrained
Buyers
Value
Oriented
Buyers
Commodity
Buyers
Quality
Buyers
Summary - Consumer Analysis: Shopping Behavior

12. Competition Analysis
Between 1900 to 1970’s there were Five companies dominating the US market which were mainly:
Goodyear, Firestone, Uniroyal, BF Goodrich and General Tires:
 The major foreign competitor is Michelin of France
 Michelin’s image was stronger among value oriented buyers and quality buyers, while Goodyear
had a stronger image among Price constrained buyers and commodity buyer

13. Brand Switching
Between 1900 to 1970’s there were Five companies dominating the US market which were mainly:
Goodyear, Firestone, Uniroyal, BF Goodrich and General Tires:
 The major foreign competitor is Michelin of France
 Michelin’s image was stronger among value oriented buyers and quality buyers, while Goodyear had a
stronger image among Price constrained buyers and commodity buyer
 Michelin owner were most loyal, followed by Goodyear, but significant proportions of consumer who owned
major brands replaced their tires with private label brands

14. Logo here
Retail Distribution Channels
• Garage/Service station
• Warehouse clubs
• Mass Merchandisers
• Manufacturer owned outlets
• Small independent dealers
• Large independent chains
• Others
• Goodyear did not sell tires in garage/service station,
warehouse clubs or mass merchandisers; Instead the
company relied on three types of outlets:
• The remaining 15% of sales were to Government agencies
• “JUST TIRES” a proposed new retail format of Goodyear
planned to offer tires and fast oil changes without
appointment and guaranteed speed and quality of
installation.
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Goodyear Distribution Structure

15. THANK YOU
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