Download - Goodyear : The aquatred launch
![Page 1: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/1.jpg)
Goodyear : The Aquatred Launch
![Page 2: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/2.jpg)
HISTORY• TRADITIONALLY HUGE MARKET SHARE • 41 PLANTS IN U.S AND 43 PLANTS OVERSEAS
• 2000 DISTRIBUTION WORLDWIDE • AROUND 1,05,000 EMPLOYEES• FOREIGN MARKET SHARE ROSE FROM 8 % IN
1972 TO 22% IN 1990
![Page 3: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/3.jpg)
The market for Passenger Tires
PERFORMANCE BROADLINE TIRES
Better traction Poor handling
30% of dollar sales25% of Gooodyear’s unit salesHigher percentage of profits
Less percentage of profits
More expensive Less expensive
![Page 4: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/4.jpg)
The Market for Passenger Tires
65 % REVENUE
35% REVENUE
Replacement Vs OEM
SOLD TO INDIVIDUAL CUSTOMERS
SOLD TO CAR MANUFACTURERS
![Page 5: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/5.jpg)
The Market for passenger tires
BRAND CLASSIFICATION
Major Brands Minor brands Private label
36 % of unit sales 24 % of unit sales 40 % of unit sales
Highest recognition among consumers
Minor but well recognized among consumers
Large manufactures use excess capacity to service private labels
Goodyear , Firestone , Michelin , Bridgestone , Pirelli and goodrich
Dunlop , General , kelly , uniroyal , cooper
They carried names to particular retailers
![Page 6: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/6.jpg)
Goodyear’s Distribution Structure 4 CHANNELS OF DISTRIBUTION
• INDEPENDENT DEALERS : ACCOUNTED FOR 50 % OF SALES REVENUES THROUGH 4400 OUTLETS ( 2500 ACTIVE
• MANUFACTURER-OWNED OUTLETS : GENERATES 27 % OF SALES THROUGH 1047 OUTLETS
• FRANCHISED DEALERS : 600 IN TOTAL ACCOUNTED FOR ANOTHER 8 % OF SALES
• GOVERNEMENT AGENCIES : 15 % OF SALES
![Page 7: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/7.jpg)
SALES OPERATIONCOMPANY OWNED
OUTLET INDEPENDENT DEALERS
42 DISTRICTS ( 1 DM ) 28 DISTRICTS ( 1 DM )
20 TO 23 STORES EACH (1 SM ) AVG. 3 SM
• SERVICES 1. Expertise & Training 2. GY business mgt. System3. National & regional advantage 4. Research on market trend 5. Certified Auto service
![Page 8: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/8.jpg)
INDEPENDENT DEALERS AUTO SERVICES • SERVICES SALES $38,100 PER MONTH PER OUTLET
1. 26 % ( 1980 ) to 48 % ( 1991 )
2. 20 % tries related work
• MARGINS
1. 50 % service labor
2. 20 % to 25 % parts installed
• REVENUES
1. 70 % service labor
2. 30 % parts
![Page 9: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/9.jpg)
Goodyear & independent Dealers
• 1989 70 % only GY & 30 % other brand also
• 1991 50 % - 50 % Aggresively merchandised other brands but GY generates
90 % of the revenues
• INDEPENDENT DEALERS NETWORK BETTER OPTION
Grow sales , expand brand availability & increase market share
![Page 10: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/10.jpg)
CONSUMER SEGMENTS TYPES OF BUYERS
LOYALTY OF OUTLET
LOYALTY TO BRAND
SHOP AROUND OTHER
PRICE CONSTRAINED
LESS LESS MORE BEST IN THEIR BUDGET
VALUE ORIENTED LESS MAJOR BRANDS EXTENSIVELY SEARCH FOR BEST PRICES
QUALITY - PRESTIGE
MORE MORE LESS BEST TIRES 65 % MAJOR BRANDS
QUALITY - CC MORE LESS LESS 38 % MAJOR BRANDS
COMMODITY – BARGAIN HUNTER
LESS LESS EXTENSIVELY YOUNG, PRICE
COMMODITY – TRUSTING PATRONS
MORE LESS LESS LOWER PRICE
![Page 11: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/11.jpg)
SWITCHING AMONG BRANDS
• 9%-11% OF SALES ON ADV. & PROMOTION
• 60 % SHARE OF VOICE IN TV & MAGAZINES
BRAND REPLACED
BRIDGESTONE
FIRESTONE
GOODYEAR MICHELIN MINOR BRANDS
PRIVATE LABEL
BRIDGESTONE
29 4 8 8 7 43
FIRESTONE 2 27 11 6 7 45
GOODYEAR 2 5 39 5 9 38
MICHELIN 3 3 7 44 6 36
MINOR BRANDS
2 4 10 7 32 42
PRIVATE LABEL
2 5 8 5 7 70
![Page 12: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/12.jpg)
PROMOTIONS1. ESTIMATED 75 % OF ALL GOODYEAR TIRES SOLD IN INDEPENDENT
OR COMPANY – OWNER OUTLETS WERE SOLD ON PROMOTION AT AN AVERAGE DISCOUNT OF 25 % .
2. PROMOTIONS ORGANIZED AROUND “ CORE ELEMENTS “ – SIX 3 WEEK PERIODS SPREAD THROUGHOUT THE YEAR TO BUY MERCHANDISE AT A DISCOUNT . THIS WAS SUPPORTED BY RADIO, TELEVISION , AND PRINT ADVERTISING ANNOUNCING SPECIAL PRICES ON SPECIFIC TIRE LINES.
3. “ SPRING DATING “ , ORGANIZED EVERY SPRING , PROVIDED EXTENDED FINANCING ON TIRE ORDERS TO GOOD YEAR DEALERS.
![Page 13: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/13.jpg)
SHOULD WE LAUNCH AQUATRED ?
![Page 14: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/14.jpg)
RESULTS OBSERVED
• AQUATRED BUYERS WERE LIKELY TO REPLACE COMPETITOR TIRES
• LESS CANNIBALIZING ( GOODYEAR 38-51 & MICHELIN 17-15)
• BREAKING THE ORIENTATION ( BRAND 56-47 )1. Uplifting brand equity
• TARGET SEGMENTS 1. Value oriented& quality buyer
![Page 15: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/15.jpg)
RESULTS OBSERVED• FEATURES TOLD BY THE SALESPERSON
Details Aquarted Invicta GS
60 k mile warranty 41% 10%
Great wet traction 33 38
Didn’t mention them 13 42
Won’t hydroplane 16 9
Other 29 18
![Page 16: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/16.jpg)
The launch of Aquatred• A HIGH PROFILE LAUNCH OF AQUARTED WAS
PLANNED AS IT WAS ESSENTIAL FOR REVITALIZING THE NAME OF GOODYEAR TYRES IN THE MARKET
• FULL SCALE BUDGET FOR LAUNCH : $21 MILLION
• GOOD YEAR MADE COMMITMENTS FOR COMMERCIAL TIME DURING THE WINTER OLYMPICS IN JANUARY 1992 TO GET AN ADVANTAGE OF MASS PROMOTION
![Page 17: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/17.jpg)
Issues faced on launching• TIMING OF LAUNCH• RIGHT PRODUCT OR NOT • DISTRIBUTION CHANNEL• PRICING AND
PROMOTION • INITIAL INVENTORY
![Page 18: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/18.jpg)
Recommendations GO- TO MARKET STRATEGY
• CUSTOMERS : VALUE ORIENTED AND QUALITY BUYER SEGMENT• COMMUNICATION PLANS
a. Message : Highlight core values of safety , trust and reliability on all season
b. Place : Upcoming Olympics events on jan – 1992 through a video ad with above message
In addition other strategies are required
1. Radio ads
2. Teaser ads
3. Billboards
4. Press releases
5. “On snow “Demo
![Page 19: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/19.jpg)
Recommendations• INITIAL INVENTORY
- TEST MARKET RESULTS SHOW
- 74 % BUYERS OF DOMESTIC
- 26 % BUYERS OF IMPORTED
![Page 20: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/20.jpg)
Recommendations CHANNEL STRATEGY
• USE EXISITING INDEPENDENT CHAIN & MANUFACTURING OUTLETS
• GEOGRAPHIC SPREAD OF ALL CONTACT POINTS FOR MAXIMM REACH
• DESIGN PROMOTIONAL INCENTIVE SCHEMES FOR DEALERS • MOTIVATE OR TRAIN OTHER INDEPENDENT DEALERS TO
PROMOTE GOODYEAR PRODUCTS ( TOTAL 1900 DEALERS )• CONTACT POINT INTEGRATION TO HAVE SAME MESSAGE AT ALL
TOUCH- POINTS
![Page 21: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/21.jpg)
![Page 22: Goodyear : The aquatred launch](https://reader034.vdocument.in/reader034/viewer/2022052203/55cad70fbb61ebc6438b4864/html5/thumbnails/22.jpg)
CREATED BY ELDHOSE ALIAS , MEC ERNAKULAM ,DURING AN INTERNSHIP BY PROF . SAMEER MATHUR , IIM LUCKNOW
www.IIMInternship.com