This is what we call a conflict. The promotion program should be launched nationwide to have a stronger impact on the market. The analysis should tell us at average expected price, and at what price the intent to buy falls sharply and at what point the price is too inexpensive and hurts the image. Students should use the information about the channel and the evolution of consumer behavior to make two decisions: Some consumers change brands and channels every time they purchase tires while some other relay on some trusted brands and channels for years. They are not interested in brand equity or label loyalty; they dispatch an order as requested by the next channel or retail. 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.

Basically, this case study is all about the tire industry in the US. Goodyear developed what they called the Aquatred tire which was supposed to give greater traction during wet weather and a superior quality that would have the same traction after much use as some tires did when they were brand new. You can change your ad preferences anytime. Create an account click here. Search Case Solutions Search for:

This had a huge impact on the performance of the company, the labor force was reduced and earnings were declining day by day. This was also due to the fact that Goodyear was having financial problems Discount outlets use the product to conduct switch and bait technique — by attracting brand loyal customer using the product advertising and offering an alternative solution.

Safety, durability and appeal!

Goodyear: Aquatred Launch Harvard Case Solution & Analysis

These outlets charges highest price as the consumer purchasing would be connected to the emergency purchase. This is just a sample partial case solution. See our User Agreement and Privacy Policy. At the same time from the company standpoint, expanding channels means adding intermediaries to create an inventory buffer.

Customers were also not satisfied with the design of outlets, actually, they were not able to match the positioning that company has created in their minds with the outlets that were operating.

Please place the order on the website to order your own originally done case solution. Visibility Others can see my Goodyear the aquatred launch case study solution.

Focus on proving value for a price. The company has fulfilled the demands of its customers very efficiently throughout its time. Clipping is a handy way to collect important slides you want to go back to later.

Goodyear: The Aquatred Launch | Case Study Solution | Case Study Analysis

Low life of the Advertises low price Goodyear for a lower quality. Quelch, Bruce Isaacson Source: Aquatred would appeal to consumers through a psychological need for safety by providing a functional attribute of improved traction in wet condition; through goodyear the aquatred launch case study solution social need for difference by providing style change and through economic benefit of getting more value than a competitive tire.

These Value buyers are followers and would switch after Quality consumers if they value is worth the investment. Search Case Solutions Search for: Price conscious reliability – groves, tread and benefits are important in consumers are drawn to the superior high touch service at terms of lifetime for tire and low cost, one stop shopping the point of sale. Simplification of the message to goodyear the aquatred launch case study solution.

Goodyear has a hybrid go to market strategy combining both direct and indirect channels. SlideShare Explore Search You. The tire market is almost at its saturation stage and at this stage Goodyear requires Aquatred to develop its brand image as an innovative leader in an industry where competition is at its peak. Objectives handling for pricing c.

Secondly, the company faced the issue of selecting the right channel to best market their new innovation. Goodyear should position Aquatred as a top of the broad-line segment, referring to improvement of performance and safety in wet conditions.

Goodyear should avoid selling Aquatred to other distribution channel and car manufacturers — OEM to keep the product in the premium goodyear the aquatred launch case study solution, at least until competition enters the market in Large Chains are resellers for independent dealers, secondary outlets and its own retail outlets.

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.

Benefits and positioning against competition b. However, the tire industry has matured and evolved, raising questions about the ability of Aquatred to enlist the support of independent dealers Goodyear tires.

These tires gave more mileage then the bias tires and bias-belted tires, and were cheap in cost. The pricing method — Perceived Value Pricing should focus on safety image, high traction performance, warranty and other service deliverables through channel, savings on insurance, brand reputation and trustworthiness.

Would 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 goodyear the aquatred launch case study solution. Goodyear needs to review their other investments and select its core focus as a company.

Such improvements will allow Goodyear to access those resources that will enable it to compete with its competitors.

It started to open outlets on anaverage of per year. Please login to view the full paper. Ins, US tire market started facing challenges problems due to introduction of Radial tires.