case study aquatred

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REVEREND PERSONALITIES…

•BARRY ROBINS (Vice President of Marketing GOODYEAR, North America)

• STANLEY G. GAULT (Retired Chairman RUBBERMAID)

Till what extent has Tire industry been successful to

stand up to customer’s expectation???

Earlier it was a

“GRUDGE

PURCHASE”

• It was an expensive necessity to keep vehicle in driving condition.•Time lag between purchase of 2 tires was 2.5 years.•People were purchasing out of compulsion.•People purchased in form of “pairs”.

2 tires- 42% 4 tires- 40% 1 tire- 16% 3 tires- 2%

EARLIER…

If Broad-line tires can be priced within $6 range, from most expensive to least expensive……

THE KEY ATTRIBUTES…•Tread Life

•Wet Traction

•Handling

•Snow Traction

•Dry Traction

- SCOPE OF IMPROVEMENT -

7 MOST IMPORTANT CRITERIA…

I. Price

II. Offset fast service

III. Can trust personnel

IV. Store is attractive

V. Offers mileage warranty

VI. Brand selection

VII.Maintains convenient hours

CONSUMER SEGMENTATION

I. Price constrained buyers

II. Value constrained buyers

III. Quality buyers

IV. Commodity buyers

Sales in 1992

Price oriented Value orientedOutlet

Sales in 1985

Price oriented Value orientedOutlet

Asses the new outlets for “AQUATRED”? How should it move ahead with its strategy of involving

Company armed outlets and Independent dealers???

MANUFACTURERS

WHOLESALERS

DEALERSCONSUMERS

1976 1981 1986 19910

10

20

30

40

50

60

70

DISTRIBUTION CHANNELS(% of Replacement Passenger tires per unit)

Oil companies Large retailers Manufacturer- owned outlets Independent dealers

GOODYEAR’S SALES TO 3 KINDS OF INDEPENDENT DEALERS

Sales

Dealers (Strictly Wholesalers)Dealers (sold tires and resold tires)Dealers (who brought tires to resell in their own outlets)

CERTAIN ASPECTS TO BE TAKEN CARE BY

THE RETAILERS…

I.

COUNTERFIETIN

G ISSUES

II.

OVERLAP

III. INDEPENDENT

DEALERS PISSED

OFF WITH LOW

PRICED OUTLETS

- SCOPE OF IMPROVEMENT -

STRATEGIC IMPLEMENTATION FOR

CUSTOMERS

I. New owners franchised

II. Consistent levels of sales

III. Goodyear supported core events

IV. Various discount offers were implemented

V. Additional accessories were provided

SERVICES PROVIDED TO DEALERS

I. Expertise and training

II. Certified Auto service

III. Goodyear Business Management

IV. National & Regional advertising

V. Research on market trends

VI. Various allowances

How should Goodyear indulge itself in getting the right product?

Determine the appropriate time of its launch???

I. FORMULA

ONE

II. OLYMPICS

TOUGH COMPETITION….

GOODYEAR MICHELIN

PROF. SAMEER MATHURIndian Institute Of Management, Lucknow

Professor in Marketingwww.IIMInternship.com

Created By;

SIDHANT PATINATIONAL INSTITUTE OF

TECHNOLOGY, ROURKELA

As an intern, under the guidance of,