Goodyear: The Aquatred Launch

Executives at Goodyear must decide whether to launch the new Aquatred line of tires, and if so, the best strategy with regards to distribution channels, pricing, and timing.

Goodyear needs to gain market share from competitors, particularly among the value and quality oriented consumers. In addition, Goodyear needs to improve margins due to an industry which is particularly mature and stagnant, causing net income to be less than 1% of total revenues.

In order for the Aquatred launch to be successful, Goodyear needs the support of its dealers.

Goodyear has been known as ‘The Gorilla’ for its dominance of the world tire industry. However, there have been significant changes in the tire industry: emergence of the radi

• Introduction at the Winter Olympics during a market-ideal weather season for a wet-traction tire.

Commodity buyers – bargain hunters Yes No No Yes

Value Better traction / Handling / Performance

Brand switching - Significant proportions of consumers who owned major brands replaced their tires with private label brands because of lower price.

Price oriented 45% Brand oriented 22% Outlet oriented 33% Extensive Shopping

o Reflects higher value in product (at 50% of life, tread like new all-season tire).

Some topics in this essay:
Winter Olympics, Recommendation Launch, SWOT Strengths, Context Demand, Pros Pre-emptive, Based SWOT, Summary Growth, Background Goodyear, Pros Distributing, Sales Unit, market share, passenger tire, tire market, independent dealers, buyers â€, yes yes, passenger tire market, winter olympics, quality buyers, launch aquatred, unit sales, season wet-traction tire, goodyear dollar sales, launch aquatred line, market • target,