Académique Documents
Professionnel Documents
Culture Documents
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¢ 5 Major players : Goodyear, Firestone,
Uniroyal, BF Goodrich and General Tire
¢ Consistent growth in profits
¢ Absence of foreign competition
¢ Changes during the period
Emergence of radial tires superior to existing bias
and bias belted tires
Increased competition e.g Michelin of France
Change in nature of demand of tires
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¢ !luggish growth in demand for passenger tires
¢ Decline in price of tires
¢ Tire producing capacity outstripped demand
¢ Number of mergers and acquisitions
Uniroyal-Goodyear sold to Michelin
General Tire sold to Continental
Armstrong Tire sold to Pirelli
Dunlop sold to !umimoto
Firestone sold to Bridgestone
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%
Replacement OEM
3 5
50
3
@ @ @ @ @ @
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!umimoto,
3.5
Pirelli, 3.
Michelin,@0
Continental, .
3.
Goodyear,. Bridgestone
5 , .
V 3 of unit sales
Major Brands V Made by large manufacturers
V ighest recognition
50
5
0
35
30
25 @ 5
20 @ 2
@5
@0
5
0
Price Brand Outlet
Oriented Oriented Oriented
#
Tire manufacturer
Wholesalers
Retailers / Dealers
End consumers
¢ Major distribution channels are :
Oil companies
Large retailers
Manufacture owned outlets
Independent dealers
20
2 Large Retailers
5 @0
Manufacturer 5
@@ owned outlets
Independent
dealers Percentage Sales for 1991
Percentage Sales for 1986
3 2
@ @
@3 @2
Garages/!ervice Mass
Warehouse clubs
stations merchandisers
!mall, neighbourhood
Large stores Retail chains
outlets
Large
Manufacturer
independent tire Others
owned outlet
chains
Known as alf the sales account
Owned and operated
multibranded for by full service auto
by manufacturer
discounters supply stores
Competitor for
Offered range of auto Carried major brands
independent dealers
services and private label tires
due to price
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¢ 00 independent dealers accounting for 50 of
sales revenue
¢ Retail margins :
2 for independent dealers
25 for dealers carrying other brands
20 for private label tires
¢ Wholesale margins :
@ for private label tires
@ for goodyear tires
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¢ New retail format by Goodyear
tire dealers
2 mass
merchandisers
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¢ Major competition from Michelin which had
stronger image among value oriented and
quality buyers