Goodyear Case Study Aquatred Gloves

Goodyear Aquatred Case Analysis Essay

2554 WordsDec 6th, 201011 Pages

Executive Summary

Contemplating the launch for the Aquatred, an innovative tire providing improved driving traction under wet driving conditions, Goodyear needs to finalize the specifics regarding their marketing plan and distribution structure. In a time when tire purchases are becoming more price sensitive and moving towards a market demanding low cost private labels, Goodyear needs to determine an efficient strategy that markets a premium priced tire to this price dependent consumer base. Below is a summary of the proposed marketing plan:

Year 1 Expected Sales: $76,594,350 (about 850,000 units)

In addition, Goodyear is considering expanding their entire distribution structure to occupy emerging channels in the market. By…show more content…

Even though most consumers view tires as a “grudge purchase,” the quality-conscious buyers want a tire offering the best reliability, durability, and handling, even if price of that tire comes at a premium. Of the potential markets, the target market analysis in Exhibit 2 clearly illustrates the size of the market and why the Quality-Conscious Buyers would be the most profitable segment to target.
Aquatred Distribution Structure: In regard to Aquatreds innovative technology, Goodyear has a great deal of time and money riding on the implementation of its strategy. With expected sales to “most likely” reach $76,594,350 in year one (See Exhibit 3), I feel that Goodyear should stick to their existing channels, which include Small Independent Dealers and Manufacturer-Owned Outlets. Not only does Goodyear posses the greatest experience in these particular outlets, but they produce greater margins (See Exhibit 4) and allow Goodyear to maintain control throughout the distribution process.
Expanding Distribution: Based on current market trends, the only rising channel in terms of “Channel Share of Retail Sales” that Goodyear has yet to utilize would be that of Warehouse Clubs. Even though Warehouse Clubs are a relatively new retail format, they are quickly growing thanks to their variety of product offerings and their low prices. Even though Aquatred would not directly fit into this

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Стратмор пожал плечами. - Слабое сердце… да к тому же еще испанская жара. Не забывай и о сильнейшем стрессе, связанном с попыткой шантажировать наше агентство… Сьюзан замолчала.

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