A Case for Strategic Trade? Since existing dealers should have already collected high profits on Aquatred, they would probably see entering additional channels as less threatening. Also, the private label had become the biggest threat for all branded tires since many branded tire owners intended to replace their tires with private label. By defocusing on innovations in tire markets, they are facing an price wars as their differentiators from private label and other competitor are very small, as perceived by the consumer. Consumers are demanding improved quality product with key characteristics as defined in survey. Secondly, the company faced the issue of selecting the right channel to best market their new innovation.

The goal of manufacturer owned outlets were to make public aware and educated about the line of Goodyear products. Students should use the information about the channel and the evolution of consumer behavior to make two decisions: Price High brand awareness at sensitivity is low. While we can assume that the price range should be within the perceived value category, it is imperative to run more studies using models of Van Westendorp and Conjoint analysis to measure distribution of perceptions about the acceptable price of the product. This is a high maintenance category as evident by the Bill of Rights asking to be treated better by manufacturers.

To design the channel network, Goodyear should understand what the need of the Quality Conscious consumer segment is and where they purchase their tires.

They are not interested in brand equity or label loyalty; they dispatch an order as requested by the next channel or retail. Aquachannel design has a grove, a brand element that creates an impression of channeling water. Product Position includes such characteristics as design, name and brand, warranty and level of customer service. Consumers are demanding improved quality product with key characteristics as defined in survey. Consequently, the benefit of these two attributes is a consumer perceived value which is the willingness to pay more.

Whereas price-focused buyers treated goodyear case study aquatred as a goodyear case study aquatred purchase, quality and value-conscious buyers emphasized on quality, performance and reliability attributes of tires.

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Based on the analysis, this segment is interested in performance and quality; thus the channel must understand technical characteristics goodyear case study aquatred tires and be able to provide presales and post sales support. Brochures explaining technical characteristics of the product against competitors.

Aquatred would appeal to consumers through a psychological need for safety by providing a functional attribute of improved traction in wet goodyear case study aquatred through a social need for difference by providing style change and through economic benefit of getting more value than a competitive tire.

This was not a core business, but was important from the awareness standpoint. Large Chains are resellers for independent dealers, secondary outlets and its own retail outlets. Goodyear Distribution Channels 1 Small Independent Dealers has conflicts with Goodyear about proximity of manufacturer owned outlet, billing, pricing and need goodyear case study aquatred special programs.

The price for this new tire was going to be quite expensive. Show related SlideShares at end. The analysis should tell us at average goodyear case study aquatred price, and at what price the intent to buy falls sharply and at what point the price is too inexpensive and hurts the image.

Goodyear Aquatred Case | Case Study Solution | Case Study Analysis

Habitual buyers rely on the same brand and channel of purchasing; while dissonance seeking consumers explore product variety in terms of performance, resilience and durability and make a purchase in their favorite distribution channel. Also, Goodyear segmented consumers into four categories: There is no evidence in the case that Goodyear properly addressed planning, incentives or conducted a thorough review of the channel practices to understand how to handle each channel independently.

After the careful analysis of the consumer behavior, distribution channels, tire replacement market environment, company position and competition, the next step is to select a target market among described segments and create a product differentiation strategy for goodyear case study aquatred position.

This is what we call a conflict. Replacement tire market of shows that consumers across all goodyear case study aquatred are becoming more tire brand aware and price conscious. No notes for slide.

By deploying high pricing Goodyear will communicate image of a goodyear case study aquatred product. Many large and small manufacturers specialized in private label due to excess capacity; however, they have created a problem as the market is oversaturated with tires leading to price competition.

They were at a crossroads in deciding which direction the company would take. How Does it Work?

Full Name Comment goes here. Another important trend is the increase in the marketshare of private labels due to the high amount of goodyear case study aquatred and value conscious buyers. Unfortunately they were stuck in a time when replacing tires was not high on peoples list of pleasantries, which will be explained in greater detail.

In the current scenario, the company is experiencing decline in prices, low growth and low profit,therefore, Goodyear needs to introduce a powerful and superior quality product to become a market leader for premium tires. The tire consumers can be broken in the three category with definitions as per the table below: We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads.

Students should use the information about the channel and the evolution of consumer behavior to make two decisions: Channels should contribute to the value chain of the product through the following characteristics: The pricing method — Perceived Value Pricing goodyear case study aquatred focus on safety image, high traction performance, warranty and other service deliverables through channel, savings on insurance, brand reputation and trustworthiness.

This is a hedge against fluctuations of demand. The tire consumers can be classified into three groups: The tire market is almost at its saturation stage and goodyear case study aquatred this stage Goodyear requires Aquatred to develop its brand image as an innovative leader in an industry where competition is at its peak. Goodyear case study aquatred Goodyear expand and become a huge distributor to everyone available or might they choose to be very specific in their advertising, possibly only promoting to the people that could afford the tire or truly saw it as a good investment for their safety.


To make these attributes tangible, Goodyear case study aquatred should introduces a new tire style with Aquachannel design. Unique value proposition is to provide high traction in snow, ice, dry and wet weather for improved safety.

The industry at this time was not looking for a high performance tire so much, but rather something with a guarantee and that would last them a really long time. Price for Consumers