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Presently, Goodyear holds the largest market share in both the replacement market (15%
share) and OEM market (38% share). In New Tire sales, however, it is in the 3 rd position with
$8.5 billion total sales and is preceded by Michelin and Bridgestone at $10.4 and $9.8
billion sales.
Market and Replacement Tire Consumer Segmentation:
Segment
ation
Basis
Sold to Brand
Tire
which Classficat
Features
customer ion
Replace Private
Performa Broad- OEM Major Minor
ment label
nce line (22%) (36%) (24%)
(78%) (40%)
Price constrained
Less Less More Best within budget
Quality – Prestige
More More Less Own the best tires
Distribution Scenario:
Recommendation:
Goodyear needs to broaden its distribution to mass merchandisers. With decreasing
brand loyalty amongst independent dealers, and among end consumers, it is necessary
to better penetrate the market for greater visibility and sales.
Aquatred, being a new, and quality product, requires extensive detailing to the consumer
to enable purchase behavior, as evident through the test-marketing results. The
Aquatred offering appeals to the value-oriented and quality buyers. Hence, I believe that
Aquatred should not be mixed in the clutter of mass merchandisers, but should employ
existing independent and franchise channels. We should incentivize dealers and provide
them with appropriate training to deliver concurrent messages at the point of sale.