A SYNOPSIS – GOODYEAR

PGP13
SECTION D
GROUP 7

MEMBERS:
ABHISHEK MAHNOT (ROLL NO: 187)
DAISY BASUMATARY (ROLL NO: 197)
HARISH R (ROLL NO: 207)
MANDEEP SINGH CHAWLA (ROLL NO: 217)
RAHUL BANSAL (ROLL NO: 227)
SHIVA KUMAR R (ROLL NO: 237)
ISSUES
• Is Aquatred the right product for the dealers and the consumers taking
into consideration the time and sluggish market conditions?

• To decide on the distribution network. Whether they should go with

existing network or should they expand their distribution network, and if so, what
should be the format of distribution network.
• Finalize Pricing and promotional policies for the aquatred.

ANALYSIS
Existing Distribution:

• 4,400 independent dealers accounting for 50% of sales revenues

• 1,047 manufacturer-owned outlets generating 27% of sales
• 600 franchised dealers accounting for another 8% of sales

Consumer

• Quality Conscious buyers – 18%

• Value Conscious Buyers – 23%
• Price-focused Buyers – 59%

• Price and promptness of services are two most important attributes for the
consumer while selecting the tire retailer.

Features : Aquatred

• Broad line segment

• Priced at 10% premium over the Invicta GS

• 60000 miles warranty

• Patented but patent protection difficult

• Different appearance

• Not to be available in the OEM market

• Competition from Aqua Contact of Continental tires.

Important Facts
 • Goodyear had the highest percentage among price-constrained
buyers (16%) and commodity buyers (10%),
• 24% of value-oriented buyers and 22% of quality buyers
intended to buy Michelin tires.
• Private label tyres formed a significant portion (40%) of the market. Goodyear has ceased
its private label tyre production and has replaced it with branded tyre of comparable price.

• Goodyear facing lots of debt due to acquisitions and investments

• Revitalization depends on the success of AquaTred

Price And Promotion Options

Strategy Positives Negatives

Target Value oriented • Projected as a • Sluggish Market.

and quality buyer premium brand
• Price sensitive
• Higher profit consumers
increasing.
margins
• Dealers prefer
• Entry into the
economy products
niche segment.

Target price sensitive • Dealers will • Cannibalization.

buyers. enthusiastically
• Decreased revenue.
sale the product.
• Wet traction
• Large and loyal
advantage cannot be
market. leveraged
• Better replacement
sales

.Distribution Options

Strategy Positives Negatives

Expand network using • Quick and Quality • Will come as a threat

more manufacture stores service to consumers to dealers .It may
and new retail format ‘Just • Boost sales • Cannibalize sales of
Tyres’ already existing
• Prevent Goodyear
 OEM tires from outlets.
being replaced by
other tires

Improve on the existing • Strong dealer • Less focus by

network. Train sales support. independent dealers.
people.
• No Cannibalization. • No exclusivity

• Leverage existing
network

RECOMMENDATIONS
Pricing :

• We will go with strategy 1. Improved wet traction is a superior advantage and it

should be leveraged to increase revenue.

• They have reasonable presence in all market segments.

• They have successfully innovated and launched successful products in this segment.

• Due to product differentiation can capture significant market share in niche segment.

• 56% of customers bought Aquatred because of the Brand and 84% of them are value
oriented and Quality buyers.

Distribution

Alternative 2

• Brand loyalty is not an issue in this segment. So dealers plays the key role in sale.

• So they should keep the dealers happy. They should provide them with proper training
so as the salespeople are able to identify target customers and pitch the product
successively.